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May 2019
FY18Results
PIRAEUS GROUP PRESENTATION
Table of Contents1 EXECUTIVE SUMMARY2 FINANCIAL PERFORMANCE3 ASSET QUALITY4 LIQUIDITY amp FUNDING5 APPENDIX
3
Fundamental turnaroundde-risking profitability liquidity strengthening efficiency risk-centered culture
Agenda 2020
Re-focus on the core bank based on re-sizing right pricing agile service offering and customer experience
Business
Transformation lean business response to clientsrsquo needs improved business performance
Digital
Stop legacy costs right use of capital focused delivery of capital enhancement plan actions
Capital
NPE decrease
euro85bn
new loans
euro57bn
2017-2018 ACHIEVEMENTS
4
Paving the way for a new operational model based on profitability capital enhancement and commercial value
Agenda 2021
Growing the core bank based on risk-adjusted returns from core segments amp products and cost efficiency
Business
Revenue generation from expanding customer base and increased engagement
Digital
Organic capital generation and balance sheet optimization disposal of non-core assets
Capital
NPE decrease by 2021
euro15bn
new loansby 2021
euro15bn
2019-2021 DEVELOP A PROFITABLE BANK
5
LDR117
85
OUR PROGRESS SO FAR
0ELA
euro119bn
0NPE
euro358bn
euro273bnBranches
660
553Staff14492
12097
NIM275bps
241bpsNFI
49bps
50bpsOPEXeuro12bn
euro10bnCoR
222bps
157bpsRoAlosses
04
2018
2016
Progress in all fronts of the Bankrsquos operational performanceNII impacted from IFRS9 transition stabilization post that
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
Table of Contents1 EXECUTIVE SUMMARY2 FINANCIAL PERFORMANCE3 ASSET QUALITY4 LIQUIDITY amp FUNDING5 APPENDIX
3
Fundamental turnaroundde-risking profitability liquidity strengthening efficiency risk-centered culture
Agenda 2020
Re-focus on the core bank based on re-sizing right pricing agile service offering and customer experience
Business
Transformation lean business response to clientsrsquo needs improved business performance
Digital
Stop legacy costs right use of capital focused delivery of capital enhancement plan actions
Capital
NPE decrease
euro85bn
new loans
euro57bn
2017-2018 ACHIEVEMENTS
4
Paving the way for a new operational model based on profitability capital enhancement and commercial value
Agenda 2021
Growing the core bank based on risk-adjusted returns from core segments amp products and cost efficiency
Business
Revenue generation from expanding customer base and increased engagement
Digital
Organic capital generation and balance sheet optimization disposal of non-core assets
Capital
NPE decrease by 2021
euro15bn
new loansby 2021
euro15bn
2019-2021 DEVELOP A PROFITABLE BANK
5
LDR117
85
OUR PROGRESS SO FAR
0ELA
euro119bn
0NPE
euro358bn
euro273bnBranches
660
553Staff14492
12097
NIM275bps
241bpsNFI
49bps
50bpsOPEXeuro12bn
euro10bnCoR
222bps
157bpsRoAlosses
04
2018
2016
Progress in all fronts of the Bankrsquos operational performanceNII impacted from IFRS9 transition stabilization post that
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
3
Fundamental turnaroundde-risking profitability liquidity strengthening efficiency risk-centered culture
Agenda 2020
Re-focus on the core bank based on re-sizing right pricing agile service offering and customer experience
Business
Transformation lean business response to clientsrsquo needs improved business performance
Digital
Stop legacy costs right use of capital focused delivery of capital enhancement plan actions
Capital
NPE decrease
euro85bn
new loans
euro57bn
2017-2018 ACHIEVEMENTS
4
Paving the way for a new operational model based on profitability capital enhancement and commercial value
Agenda 2021
Growing the core bank based on risk-adjusted returns from core segments amp products and cost efficiency
Business
Revenue generation from expanding customer base and increased engagement
Digital
Organic capital generation and balance sheet optimization disposal of non-core assets
Capital
NPE decrease by 2021
euro15bn
new loansby 2021
euro15bn
2019-2021 DEVELOP A PROFITABLE BANK
5
LDR117
85
OUR PROGRESS SO FAR
0ELA
euro119bn
0NPE
euro358bn
euro273bnBranches
660
553Staff14492
12097
NIM275bps
241bpsNFI
49bps
50bpsOPEXeuro12bn
euro10bnCoR
222bps
157bpsRoAlosses
04
2018
2016
Progress in all fronts of the Bankrsquos operational performanceNII impacted from IFRS9 transition stabilization post that
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
4
Paving the way for a new operational model based on profitability capital enhancement and commercial value
Agenda 2021
Growing the core bank based on risk-adjusted returns from core segments amp products and cost efficiency
Business
Revenue generation from expanding customer base and increased engagement
Digital
Organic capital generation and balance sheet optimization disposal of non-core assets
Capital
NPE decrease by 2021
euro15bn
new loansby 2021
euro15bn
2019-2021 DEVELOP A PROFITABLE BANK
5
LDR117
85
OUR PROGRESS SO FAR
0ELA
euro119bn
0NPE
euro358bn
euro273bnBranches
660
553Staff14492
12097
NIM275bps
241bpsNFI
49bps
50bpsOPEXeuro12bn
euro10bnCoR
222bps
157bpsRoAlosses
04
2018
2016
Progress in all fronts of the Bankrsquos operational performanceNII impacted from IFRS9 transition stabilization post that
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
5
LDR117
85
OUR PROGRESS SO FAR
0ELA
euro119bn
0NPE
euro358bn
euro273bnBranches
660
553Staff14492
12097
NIM275bps
241bpsNFI
49bps
50bpsOPEXeuro12bn
euro10bnCoR
222bps
157bpsRoAlosses
04
2018
2016
Progress in all fronts of the Bankrsquos operational performanceNII impacted from IFRS9 transition stabilization post that
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
01Executive Summary
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
22 24
-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
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
2019
2020
QoQ change YoY change
| EXECUTIVE SUMMARY
01
7
11 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
Real GDP Returns to Growth Trajectory (2017 +15 2018 +19)
Unemployment Rate Improvement Path (2017 215 2018 193)Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
172153
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
30
35
40
45
50
55
60
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Q3
12
Q1
13
Q3
13
Q1
14
Q3
14
Q1
15
Q3
15
Q1
16
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2019-2020outlook
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exports of goods and services
Long term average
2018 euro65bn
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
01
8
12 GROWTH amp REAL ESTATE PRICES SUPPORT COST OF RISK NORMALISATION
Source BoG Provisional data for H217 H118 and H218
Macro Economic Outlook
Piraeus Bank has euro25bn of real estate assets as
underlying collateral for loans and euro3bn οf own assets
Almost euro11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices estimated improvement to our enterprise value
is approximately euro50-100mn
+22
+74
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
H1
18
H2
18
-15
-10
-5
0
5
10House Price Index yoy Office Price index yoy
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 15 19 22 24 25
Unemployment rate 215 193 172 153 138
Inflation 11 06 09 13 17
Non-residential real estate price change 16 55e 40 36 36
Residential real estate price change -10 15 26 32 36
a actual f forecastSource Piraeus Economic Research baseline scenario
| EXECUTIVE SUMMARY
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
9
13 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group euromn Q118 Q218 Q318 Q418 FY18
Net Interest Income 353 352 349 355 1410
Net Fee Income recurring 69 70 76 76 291
Other Income recurring 26 61 26 45 157
Net Revenues recurring 448 483 451 477 1858
Non Recurring Revenues (24) 48 24
Operating Expenses recurring (251) (262) (243) (250) (1007)
Non Recurring Expenses (132) (4) (18) (154)
Pre Provision Income recurring 196 220 209 226 851
Pre Provision Income 64 196 253 208 721
Loan Impairment (163) (149) (149) (137) (599)
Other Items (1) (17) 4 6 (36) (43)
Pre Tax Result (115) 51 110 34 80
Net Result from Continued Operations (80) 22 93 138 173
Net Result from Discontinued Operations (3) (3) (310) (27) (4) (344)
+9 Core PPI qoq
+2NII qoq
-8OpEx yoy
(1) Other Items line includes associatesrsquo income amp other impairments
(2) Non Recurring Items include
for Q118 euro132mn VES costs [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro01mn VEScosts [reported in OpEx] reversal of loan impairment of euro67mnfrom the sale of 2 NPE portfolios [reported in loan impairment]and euro32mn loss [reported in other impairment]
for Q318 euro48mn extraordinary quality commission for pastperformance in our cooperation for general insurance businesswith international partner [reported in net fee income] euro4mnVES costs [reported in OpEx]
for Q418 euro18mn VES costs [reported in OpEx]
(3)Discontinued operations loss in Q218 incorporates a negativeamount of euro139mn of FX reserves from Romania and Serbia withno effect in equity capital as it had affected it in the past
157bps Cost of Riskin 2018
01
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
| EXECUTIVE SUMMARY
01
10
14 GROUP FY18 FINANCIAL HIGHLIGHTS
Net Results Liquidity NPEs Core Bank
euro80mn pre tax profitvs losses in 2017
85loan-to-deposit ratiovs 103 in 2017
-euro55bnNPEs vs -euro30bn in 2017
euro644mn pre tax profitvs euro103mn in 2017
bull OpEx down 8 yoy
bull CoR 157
bull Deposits in Greece +euro36bn yoy
bull ELA use eliminated Covered
Bonds IG rating
bull euro31bn organic reduction
bull euro24bn sales
bull NIM of 28 | NFI of 07
bull RoA at 16 pre tax
Core Bank data on a recurring basis
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
| EXECUTIVE SUMMARY
01
11
15 PIRAEUS BANK RECENT DEVELOPMENTS SHOW PROGRESS ON ALL FRONTS
04End of Restructuring Plan
bull Greek commitments fully completed
bull International divestments to be concluded soon
with Piraeus Bank Bulgaria sale to settle by May
2019
05
01Significant Progress on Capital Enhancement Plan Actions bull c94 of planned internal capital generating actions have been concluded (Mar19 update)
bull The remaining actions and the Tier 2 issue will be implemented in 2019 a series of additional items are being explored
NPE Sales on Track New Loan Demand
Liquidity Updated NPE Plan02 03
06
bull Steady deposit inflows result
in LDR at 85 enhancing
liquidity profile
bull Easing of capital controls with
no limit on cash withdrawals
and facilitation of business
transactions as of Oct18
bull ELA funding zeroed in mid-July
2018
bull LCR at 61 NSFR at 104 at
YE18
bull The updated 2021 NPE target is set at euro11bn
cumulative decrease of euro15bn in 3years
bull 2 schemes by the MinFin amp the BoG provide a
systemic approach in de-risking Greek NPEs
supporting the banksrsquo own effort
bull More than euro3bn target for FY18 achieved
bull Healthy business demand is emerging across
specific sectors geared to growth and exports
bull New target for euro4bn new loans in 2019
bull 2 NPE sales projects in the pipeline
(euro13bn GBV in total)
o Project Nemo regarding shipping loans
o Project Iris regarding consumer small
business loans
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
12
16 BALANCE SHEET TREND SIGNALS END OF DELEVERAGING FOR PERFORMING BOOK01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Sep18 Dec18
Assets (1) 658 593 603
Gross Loans (1) 586 528 515
gtgt NPEs 329 285 273
gtgt PEs 257 242 241
Net Loans 431 389 381
Loan Loss Reserves 155 139 133
Customer Deposits 427 429 447
Eurosystem Funding 97 20 32
Stabilisation of loans in the Core Bank
-euro12bn NPEsin Q418
euro31bnnew loans in 2018
ow euro10bn in Q418
26LLRs over gross loans
(1) Assets and Gross Loans of Dec18 amp Dec17 exclude seasonal agri-loan of euro16bnwhich gets repaid early in the following year
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
13
17 BALANCE SHEET EVOLUTION BY ITEM PEs NET DELEVERAGING CONTAINED01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn) Deposits (eurobn)
155 +17
-16 -21
+06
-04133
Dec17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec18
427
-16
+18 +18 447
Dec17 Disc Operations HouseholdDeposits
Business amp GovtDeposits
Dec18
674
-22 -08 -14 -19
+08 619
Dec17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec18
+euro36bn
Gross Loans (eurobn)
603
-10 -24 -24 -06 -07
531
Dec17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec18
2017 -euro14bn
+33 new loans-40 repayments
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
135
392
66
Gross Loans(parent level)
01
14
18 ASSET QUALITY ON TRACK AFTER HEAVY PROVISIONING OVER THE PAST 2 YEARS
| EXECUTIVE SUMMARY
133
128 collateral
provisions
377 358329
-51 -04
273
Sep15peak
Dec16 Dec17 Δ discops Dec18
Group NPE Development | eurobn
On track with 2018 NPEreduction target
-euro12bnQ4 ΝPE quarterly
reduction
euro55bnNPE reduction in the last 12 months
euro104bnNPE reduction from Sep15 peak
Coverage
96
593
Loan Portfolio Supervisory Assessment | eurobnLoan Impairments Taken Over The Past 2 Years | eurobn
Individually assessed
Collectively assessed
euro527bn of loan portfolio (as of 300917) has already
been assessed
20
+20+06 46
FY17 IFRS9 FTA FY18 Total
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
15
01
| EXECUTIVE SUMMARY
19 DEFAULTS HAVE FALLEN BY c40 IN 2018
(11)(08) (08) (08) (09) (09) (09) (09) (08)
(03)(07) (06)
(05)(05) (02)
(05)(02)
(02)
(03)
(05)
(02)(01)
(02)
(15)
(01) (05)
GeorgeHandjini
colaou(09)
(03)
(06)
07 06 03 04
06 04 02 02 02
04 04
04 03
04 04
04 03 02
Re-defaults
Defaults
Bank data amounts in eurobn
CuringsCollectionsLiquidations
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
Required effort per quarter on average until
Dec2021
Q119 ndash Q421
Sales
Q317
euro320 euro314
Q417 Q118
euro308 euro283
Q218
clean-up
Note adjustment in Q218 related with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04
deep restructuring
Q318
euro275
adjustment
03
02
euro264
Q418
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
01
16
110 UPDATED 2021 NPE RATIO IS 23 ON GROSS BASIS OR 14 ON NET BASIS
| EXECUTIVE SUMMARY
Bank data
338314
264229
165
113
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
-euro64bn
-euro52bn
-euro35bn
-euro24bn
23 NPE ratio14 οn net basis
-euro50bn
67 53
32 20 13
2017 2018 2019 2020 2021
Restructuring Volumes | eurobn
-euro120bn
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
01
17
111 UPDATED NPE PLAN COMPONENTS
Updated Plan | NPE Stock amp Flows Dec18 - Dec21 (eurobn)
euro264+euro62
-euro86 -euro12-euro44
-euro69
euro113
NPEDec18a
Inflows Curings Collections Liquidations Write-offs Sales NPEDec21f
Outflows euro212
| EXECUTIVE SUMMARY
49
NPE ratio
33net loans
gross loans 23
14
a actual f forecast
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
18
112 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT01
| EXECUTIVE SUMMARY
Asset Protection Scheme
bull Sponsored by the HFSF and the Ministry of Finance
bull Similar to the Italian GACS scheme introduced in 2016
bull NPL portfolio Securitisation with Senior notes retained by
the Bank and Mezzanine sold to third party investors
bull Hellenic Republic provides guarantee to Senior notes
subject to conditions
bull Favourable risk-weighting of the retained Senior notes
bull Facilitates the execution of larger transactions volumes
bull Complementary to the Bank of Greece proposal
bull Proposal expected to get clearance by DGComp
bull Implementation anticipated in 2019
Asset Management Company
bull Sponsored by Bank of Greece
bull Transfer of NPE portfolio along with part of the deferred
tax credits (DTCs) to SPV
bull SPV funded through Securitisation issue (Senior
Mezzanine Subordinated)
bull Subordinated notes will be subscribed by the banks and
the Greek State
bull Private investors will absorb Senior and Mezzanine notes
bull Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
bull Implementation anticipated in 2020
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
19
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn GBV euro20bn legal claimbull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct 18
Project Arctos euro04bn GBV euro22bn legal claimbull Unsecured personal loans amp credit cards
bull Sale agreed to consortium led by APS
Investments Capital sro in Jun 2018 and
concluded at the end of Oct18
Project Nemo ceuro06bn GBV equal legal claimbull Predominantly secured shipping loans
bull Houlihan amp Lokey is acting as Financial Advisor
bull Non-binding offers received in Dec18
bull Binding offers expected in Q219
Project Iris ceuro07bn GBV euro17bn legal claimbull Personal loans amp credit cards small business
loans leasing exposures
bull Virtual Data Room opened in Mar19
bull Non-binding offers received end of Apr19
2018 2019
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
339 334 329 322 317 310
285276
265
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
274 269
260 257
249 247 241 240 239
2016 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
20
114 CREDIT ORIGINATION IN GREECE IS GROWING WHILE NPEs DECLINING01
| EXECUTIVE SUMMARY
PE | eurobn
NPE | eurobn
bull Perfoming loan book stabilised as of H218
business lending is the driver of this trend
in Q119 PEs have grown for first time in many years
bull NPE portfolio clearly trending downward
140 139 137 137 138
Dec17 Mar18 Jun18 Sep18 Dec18
PE Business loans | eurobn PE Individuals loans| eurobn
66 64 64 62 62
Dec17 Mar18 Jun18 Sep18 Dec18
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
21
115 IMPROVED LIQUIDITY PPOFILE 01
| EXECUTIVE SUMMARY
361393 409 414 419 427 445
495
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Domestic Deposits | eurobn
Wholesale Funding | eurobn
bull Deposit inflows euro36bn in 2018
bull Positive deposit inflows in all quarters
14 16
94 4
2 2 3
17
12
62
8
2
2
2
3 2 2
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Sep18 Dec18
Repos
ELA
ECB
bull Zero ELA since mid-July 2018
bull euro40bn retained covered bonds received Investment Grade rating in Aug18 widening our ECB eligible collateral
23
34
21
11
8
5 54
market share29 27 29 29 29 2929 30
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
22
116 GROUP CAPITAL ADEQUACY RATIOS 01
| EXECUTIVE SUMMARY
euro bn | Dec18 Dec18 Dec18 Dec18
CET-1 Capital 65 49 65 49
RWAs 476 460 464 449
CET-1 ratio 1365 107 140 109
CET-1 Ratio
SREP Capital Requirement
bull 2019 CET1 Requirement 105
bull Lower P2R capital requirement for
Piraeus Bank in 2019
bull Phasing-in of Conservation Buffer of
625bps (fully phased)
bull Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
bull Capital enhancement plan on
track 94 of internal capital
generating actions already
concluded (as of Mar19)
bull Fully loaded ratio up by 22bps qoq
2018 2019
Pillar 1 CET1 450 450
Pillar 2 Requirement (P2R) 375 325
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1125
Conservation buffer (CB) 1875 250
Other Systemically Important Institutions - 025
Overall Capital Requirement (OCR) 13625 1400
Note pro-forma ratios are adjusted for RWA relief from the sale of Albania and Bulgaria banking operations (euro11bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
117 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CLOSE TO CONCLUSION01
| EXECUTIVE SUMMARY23
Piraeus Bank is well on track with execution of
its capital strengthening plan
Albania sale concluded in Feb19 while Bulgaria
sale is expected to be concluded in May19
Post actions to increase NPE coverage (2017
clean-up amp IFRS9 first time adoption) Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn
gtgt Serbia [banking subsidiary] Q218 ~euro03bn
gtgt Romania [banking subsidiary] Q218 ~euro06bn
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn
gtgt Albania [banking subsidiary] Q318 ~euro04bn
gtgt Other de-risking actions Q418 ~euro06bn
RWAs Impact | Sub-total ~euro26bn
B Sale of Assets | Signed SPAs
gtgt Bulgaria [banking subsidiary] Q418 ~euro07bn
C Sale of Assets| Under Way
gtgt Other de-risking actions Q119 ~euro03bn
Total ~euro36bn
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
24
118 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG EXPLORED FOR FURTHER CAPITAL ENHANCEMENT01
| EXECUTIVE SUMMARY
Management Actions Under WayEstimated
Capital Improvement
A Tier II debt issuance
160-200bps
B Enhanced organic revenue generation
C Accelerated cost efficiency actions
D Balance sheet optimization | RWA management
Management Actions Being Explored
E Review of high capital-consuming businesses
F Disposal of operations non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019 and the scheduled Tier II
debt issuance for which the
Bank is in a ready-to-go status
within a gradually improving
market sentiment Piraeus
Bankrsquos management is working
on a number of additional
initiatives to strengthen capital
position creating buffers above
supervisory requirements
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
25
119 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS 01
| EXECUTIVE SUMMARY
Status
of branches in Greece
of employees in Greece
Target max 650 max 13200
Total costs in Greece
max euro11 bn
Cost of deposits in Greece
Decrease according to Bankrsquos projections in the Restructuring Plan
Loans deposits
max 115 for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specificlimitations
Total size of foreign assets eliminated Alternatively run-off of business gt80 of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance amp ATE Insurance Romania
Sale of securities
Listed Unlisted securities
International Divestments
Status
Target
(553 in Q418) (117k in Q418) (lteuro10bn) (85 in Q418)
FY18 excluding VES related costs and DGS costs
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
26
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
ldquoPiraeus Core Bankrdquo
eurobn RWA ROA
Dec18 285 16
Sep18 290 12
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Dec18 177 lt0
Sep18 184 lt0
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Efficiency amp Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
PIRAEUS GROUP
1410
339
1858
(1007)
851
(656)
80
24
05
54
16
04
79
PLU
296
15
325
(231)
94
(511)
(458)
15
01
71
30
lt0
91
PIRAEUS CORE BANK
1114
324
1533
(776)
757
(145)
538
28
07
51
05
16
72
27
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs01
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues recurring
4 Operating costs recurring
5 PPI recurring
6 Impairments
7 Pre-tax income
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
01
28
122 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
| EXECUTIVE SUMMARY
CORE BANK
FY2018 | euromn Retail CIB Markets CorpCenter CORE TOTAL PLU GROUP
NII 571 447 108 (12) 1114 296 1410
NFI 159 133 4 29 324 15 339
Other Income 6 3 43 91 143 (10) 133
Net Revenues 736 583 155 108 1581 301 1882
Recurring Revenues 736 583 155 60 1533 325 1858
OpEx (477) (149) (23) (280) (930) (231) (1161)
Recurring OpEx (477) (149) (23) (126) (776) (231) (1007)
PPI 259 434 131 (172) 651 70 721
Recurring PPI 259 434 131 (66) 757 94 851
PBT 222 358 137 (179) 538 (458) 80
Recurring PBT 222 358 137 (73) 644 (399) 245
NIM over assets 56 36 19 lt0 28 16 24
NFI over assets 16 11 01 lt0 07 01 05
Cost of Risk 04 06 lt0 11 05 30 16
PPI over RWA 44 40 71 lt0 27 05 18
Pre-tax RoA 22 29 24 lt0 16 lt0 04
RWA density 58 88 32 88 72 91 79
PLU includes RBU international operations REOs holdings discontinued operations and non-core Greek assetsRatios on a recurring basis assets exclude seasonal agri-loan
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
29
123 RETAIL BANKING | POSITIVE RESULTS amp INCREASING PRODUCTIVITY01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 571
NFI 159
Other Income 6
Net Revenues 736
Expenses (477)
Pre Provision Income 259
Impairment (37)
Pre Tax Result 222
eurobn
Net loans 96
RWAs 59
bull Mass amp Affluent euro119mn mortgages
and euro133mn consumer new loan
production in 2018
bull Small Business x3 new loans
production in 2018 outperforming
market by 27 times
+euro05bn new deposits yoy
+7 in net fee income yoy
Loan Development | eurobn
65
35
Individuals SB
Loans (euro96bn)
98 96+ 02 +05
-07
+07
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
NFI | euromn
119133
FY17 FY18
bank data
+12
532
477
FY17 FY18
-10
OpEx | euromn
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
30
124 CIB | 2018 SNAPSHOT HIGHLIGHTS NEW LOAN DEMAND AND HIGHER FEE GENERATION01
| EXECUTIVE SUMMARY
Key Figures 2018
euromn
NII 447
NFI 133
Other Income 3
Net Revenues 583
Expenses (149)
Pre Provision Income 434
Impairment (76)
Pre Tax Result 358
eurobn
Net loans 122
RWAs 10855
10
35
Large Corporate Shipping SMEs amp Agri
NFI | euromn
Loans (euro142bn)
bull Increase of NFI by 8 yoy with
focus on cross selling
bull Sizeable cost efficiency effort
cost to income ratio at 26
bull Leading role in all large
investment projects in Greece
bull Significant pipeline of approved
large new deals (gteuro1bn) under
finalisation for 2019
115124
FY17 FY18
+8
OpEx | euromn
195
149
FY17 FY18
-24
Loan Development | eurobn
bank data
143 142+ 19 +26
-27
+32
New Loans2017
LoansDec17
New Loans2018
RepaymentsAmortizations
2018
LoansDec18
New Loans2019
Adjusted for RBU transfers
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
31
125 UPGRADED OPERATING EFFICIENCY TARGET01
16
1311
10~09 ~085
bull ldquoProject Horizonrdquo commenced in Q417 to
re-invent the cost structure of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
bull Piraeus Bank upgrades the cost target for
year 2021 to euro850mn
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2018-2021
2017
Cost reduction of more than euro150mn planned for the 3-year period 2019-2021
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains2018 2021
| EXECUTIVE SUMMARY
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
69
70
124
76
Q118 Q218 Q318 Q418 FY18 FY19e
251
262
243
250
Q118 Q218 Q318 Q419 FY18 FY19e
05
08
07
11
Q118 Q218 Q318 Q418 FY18 FY19e
353
352
349
355
Q118 Q218 Q318 Q418 FY18 FY19e
32
126 GROUP PRE PROVISION INCOME DYNAMICS WILL DELIVER ON TARGET IN 2019 01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)bull Resiliency of NII on the back of
o new loan generation
o deposit costs lower
o ELA elimination
o covered bonds eligibility for ECB funding
bull Stable course for NII in 2019e
bull NFI contribution on the back of bancassurance commission cards business farmers business etc
bull Target to reduce cost base in Greece gteuro150mn by 2021 Recurring costs for FY18 down -8 yoy
bull Further decrease for OpEx in 2019e
Operating Cost (euromn)Net Fee Income (euromn)
Net Interest Income (euromn)
euro14bn
euro034bn
euro31bn
euro12bn
~ euro40bn
~euro034bn lt euro10bn
~euro14bn
Extraordinary quality commission euro48mn
VES related cost euro015bn
e estimate
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
02Financial Performance
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
02
34
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
bull Loan to Deposit ratio at 85
41
66
2021
398
1136
26
42
75
447
051732
00
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
619
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Deposits
Total Equity
Other
619
FundingMix
Dec18 Dec18
Debt Securities
bull Funding mix enhanced on the back of ELAelimination improved interbank marketaccess and increasing customer deposits
bull Interbank repo balances lower qoq on theback of covered bond pool ECB eligibilitypartially transferred to Main RefinancingOperations boosting NII
bull Customer deposits comprise 72 of liabilities
bull Customer loan comprise 64 of assets
() other includes ldquoother assetsrdquo (euro37bn) ldquogoodwill amp intangible assetsrdquo (euro03bn) and ldquoloansamp advances to customers mandatorily at FVT PampLrdquo (euro01bn)
Interbank Loans
DTA
Discrsquod Ops amp Held for Sale
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
35
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
3
Eurosystem funding at euro32bn in Dec18 down euro65bn
yoy Market repos at euro17bn in Dec18
1
2
Further customer deposit inflows of euro19bn in Q418
drives loans-to-deposits ratio to 85 at the end of
Dec18
FY18 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro24bn) NPE collections
(euro06bn) and NPE sales (euro24bn) while net deleveraging
stood at -euro07bn
(euromn) Dec17 Sep18 Dec18 qoq yoy
Cash amp balances with Central Banks 1449 854 2572 - 77
Loans amp Advances to Banks 2148 1009 1120 11 -48
Gross Loans 60260 52788 53091 1 -12
(Loan Loss Reserves) (15541) (13917) (13333) -4 -14
Securities 4528 3661 3613 -1 -20
- ow EFSF ΕSM Bonds 1465 36 36 - -
Intangibles amp Goodwill 301 293 292 0 -3
Fixed Assets 2162 2210 2088 -6 -3
Deferred Tax Assets 6543 6550 6647 1 2
Other Assets 3264 3484 3763 8 15
Assets of Disc Ops amp Held for Sale 2302 2333 2028 -13 -12
Total Assets 67417 59264 61880 4 -8
Due to Banks 11435 4720 5548 18 -51
Deposits 42715 42886 44739 4 5
Debt Securities 435 530 528 0 21
Other Liabilities 1646 1876 1755 -6 7
Liabilities of Discontinued Ops 1641 1852 1804 -3 10
Total Liabilities 57872 51864 54373 5 -6
Total Equity 9544 7401 7506 1 -21
Total Liabilities amp Equity 67417 59264 61880 4 -8
1
3
2
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
36
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALISATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
FY18 recurring OpEx decreased by 8 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend has been the Bankrsquos lsquocost reduction
programmersquo that started bearing fruits as of early 2018 as
well as other actions aiming at administrative costs decline
1
2
NII performance for Q418 increased 2 compared to the
previous quarter at euro355mn while year-on-year
performance was impacted by IFRS9 FTA NFI in FY18
increased 2 compared to the previous year at euro339mn
FY18 loan impairment at euro599mn against euro2020mn in
FY17 following the increase in coverage levels post Q417
increased provisions and IFRS9 FTA
3
4
Q318 Q418 qoq FY17 FY18 yoy
Net Interest Income 349 355 2 1639 1410 -14
Net Fee Income 124 76 -39 331 339 2
Core Banking Income 473 431 -9 1970 1749 -11
Trading Income 15 36 - 73 80 9
Other Income 11 9 -18 45 53 17
Total Net Revenues 499 477 -4 2088 1882 -10
Total Net Revenues (recurring) 451 477 6 1976 1858 -6
Staff Costs (117) (114) -3 (546) (616) 13
Staff Costs (recurring) (114) (96) -16 (529) (462) -13
Administrative Expenses (103) (129) 25 (462) (442) -4
Depreciation amp Other (26) (26) 1 (98) (103) 5
Total Operating Costs (246) (269) 9 (1106) (1161) 5
Total Operating Costs (recurring) (243) (250) 3 (1089) (1007) -8
Pre Provision Income 253 208 -18 983 721 -27
Pre Provision Income (recurring) 209 226 9 887 851 -4
Result from Associates 11 28 - (31) 15 -
Impairment on Loans (149) (137) -8 (2020) (599) -70
Impairment on Other Assets (4) (64) - (151) (57) -62
Pre Tax Result 110 34 -69 (1219) 80 -
Tax (17) 103 - 1207 93 -92
Net Results Attrib to SHs 94 145 54 (9) 185 -
Minorities Attrib to SHs (1) (7) - (4) (11) -
Discontinued Ops Result (27) (4) - (192) (344) -
1
2
4
3
FY18 Group recurring PPI decreased -4 yoy attributed
mainly to the decline in net interest income as IFRS9 FTA
had negative impact and partially offset by the progress in
cost reduction and positive contribution of the increased
net fee and commission income In Q4 recurring PPI was
up 9
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the Central Bank for Q217euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance lease obligationremeasurement for Q317 euro35mn were flagged as one-off stemming from the persistency fee with NN for Q218euro24mn loss and a reversal of loan impairment of euro67mn from the sale of 2 NPE portfolios were flagged as one-off andfor Q318 euro48mn extraordinary quality commission for past performance in our cooperation for general insurancebusiness with our international partner was flagged as one-off In addition VES and other extraordinary staff costs of16mn euro132mn euro4mn and euro18mn were classified as one-off items in Q417 Q118 Q318 and Q418 respectively
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
37
24 NET INTEREST INCOME IMPACTED BY PROVISIONS amp DELEVERAGING02
| FINANCIAL PERFORMANCE
1
2
ΝΙΜ at 241 bps as interest income in FY18 dropped 14
yoy on the back of IFRS9 FTA and loan deleverage
Significant Improvement from the liability side and funding
ELA cost eliminated in mid July 2018 while positive impact
is accrued from covered bonds eligibility for ECB use post
their investment grade rating assignment in late Aug18
12M17 12M18 Q318 Q418
Net Loans 1999 1713 418 417
Fixed Income Securities 99 57 13 15
Other Assets 102 105 26 32
Interest Income 2200 1874 457 463
Customer Deposits 197 199 50 49
Due to Banks 131 50 12 6
ow ELA 144 18 0 0
Other Liabilities amp Equity 233 216 47 53
Interest Expense 561 465 108 108
Net interest Income 1639 1410 349 355
NIM 1 274 241 243 243
1 on assets excluding discontinued operations and held for sale loans
Net Interest Income Decomposition (euromn)
amounts in euromn
3
1639
-154-132 -42
+99 1410
FY17 Impact fromprovisions (incl
IFRS9 FTA)
Loandeleverage
Bonds Funding amp Other FY18
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
02
38
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q417 Q118 Q218 Q318 Q418
Deposits 046 046 044 042 042
Sight 055 052 051 049 050
Savings 008 007 006 005 005
Time 076 075 073 070 067
avg 3m euribor -033 -033 -033 -032 -032
Loans 364 360 352 340 342
Mortgages 217 215 212 203 201
Consumer 714 684 660 646 683
Business 392 390 381 369 370
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came stronger mainly from both corporate and SME segment
Loan Rates
Q418 Total Stock Front Book
Mortgages 20 35
Consumer 68 97
Business 37 45
Total 34 47
Loan Rates Front Book Rates Steadily Above Legacy Book
Q418
Business Loan Rates Total Stock Front Book
Corporate amp SME 34 42
SBL 56 64
Total 37 45
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
03Asset Quality
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
03
40
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data ratios exclude seasonal agri loan of euro16bn
NPLs (euromn) Dec18
Business 10432
Mortgages 4579
Consumer 2392
TOTAL 17403
Group NPL Ratio per Product Category
Group NPL Mix
335 324 315
463
338 325 315
498
Total Business Mortgages Consumer
Sep18 Dec18
NPEs (euromn) Dec18
Business 18282
Mortgages 6245
Consumer 2804
TOTAL 27331
Group NPE Ratio per Product Category
Group NPE Mix
541583
432
580531
569
430
583
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
03
41
32 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on-balance sheet data
(eurobn) 0 dpd 1-89dpd gt90dpd Denounced NPEs
Business 53 26 22 82 183
Mortgages 08 08 08 37 62
Consumer 02 02 05 19 28
TOTAL 63 36 36 138 273
NPEs per Bucket (Dec18)
49 52
29
7263
73
34
787791
40
85
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Dec18)
Forborne Loans (Dec18 euro128bn)
NPEF 0dpd37
NPEF 1-30dpd13
NPEF 31-90dpd11
NPEF gt90dpd12
PF26
euro48bn forborne with 0dpd (euro38bn business euro10bn retail)
Pace of NPE exits from curings to be accelerated as per 2021 NPE plan
NPΕ mix 23 13 13 51 100
[1] [2] [3] [1+2+3+4][4]
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
42
33 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q41803
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381
13123 6
-120 -53
56 31
-63
19
-19
9
-47 -61 -38 -2 -21
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Greek NPE Formation by Segment |euromn
Business Mortgages Consumer
NPE formation was negative in allsegments in Q418 with businesshaving a significant movement
NPE Greece | euromn
31026
-722 -488 -1706
+398 28508
-584 -213 -65
27646
-465 -172 -535
26473
Mar18 NPEformation
WOclean-up
Sales(NPE
portion)
Adjustment Jun18 NPEformation
WOclean-up
Sales(NPE
portion)
Sep18 NPEformation
WOclean-up
Sales(NPE
portion)
Dec18
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
03
43 | ASSET QUALITY
34 ADEQUATE COVERAGE IN ALL SEGMENTS
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Note NPE on balance sheet data
LLRs (euromn) Dec18LLR
Loans
Business 9485 295
Mortgages 1824 126
Consumer 2025 421
TOTAL 13333 259
LLRs (euromn) Dec18LLR
Loans
Greece 12834 255
International 500 457
TOTAL 13333 259
79
92
42
90
77
91
40
85
Total Business Mortgages Consumer
Sep18 Dec18
Group LLRs at 26 Over Loans
Cumulative provisions at 26 over Group gross loans
Total NPE coverage ratio at 95 for business portfolio including
collateral | Business NPEs are approximately 70 of total
49 51
30
71
49 52
29
72
Total Business Mortgages Consumer
Sep18 Dec18
NPE mix 67 23 10 NPL mix 60 26 14
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
91
40
Cash coverage Collateral coverage
7221
Cash coverage Collateral coverage
03
44
35 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
| ASSET QUALITY
pre-haircut tangible collateral (guarantees not included) capped at loan amount
8519
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52
43
Cash coverage Collateral coverage
Mortgages
Business
Total 131
Total 108
Total 104
Total 95
Total 100
Total 93
Total NPE
coverage at 96Total NPL
coverage at 121
29
71
Cash coverage Collateral coverage
40
68
Cash coverage Collateral coverage
Consumer
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
03
45
36 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
27
18
29
33
34
36
31
59
68
74
103
107
93
287
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Dec18) Domestic Loan Composition (Dec18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 51475 32144 14523 4808
NPL Ratio 338 325 315 498
NPL Coverage 766 909 398 846
NPE Ratio 531 569 430 583
NPE Coverage 488 519 292 722
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 50382 31215 14474 4693
NPL Ratio 331 313 316 498
NPL Coverage 769 925 396 844
NPE Ratio 525 561 430 585
NPE Coverage 485 517 291 719
Retail 380
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
46
37 AUCTIONSrsquo PROGRESS (NPE COLLATERAL)03
| ASSET QUALITY
34
58
8
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb18 - 03 May19
44k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 3 May
FY19budget
auctions carried out by Piraeus
124 124 219 396 3269 1109 ~36k
Auctions ow Successful
Q218 1021 520
Q318 623 154
Q418 1440 429
Q119 891 220
Q219 to-date 218 53
Piraeus Bank has bid for the 74 of successful auctions in 2019 vs 83 in 2018(projection for c60 in the 3-year plan)
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
47
38 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER STRICTER FRAMEWORK03
| ASSET QUALITY
Retail Loan Balances Under the Protection of L38692010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | December 2018 Total Mortgages Consumer Total
Total 2618 2390 228 713 3331
ow final court decision 1004 917 87 259 1262
bull in favor of customer 513 479 34 137 650
bull in favor of the Bank 491 438 53 122 613
of court decisions in favor of Bank 49 48 61 47 49
49 of euro1262mn of cases that had been filed and were dealt by the courts have been rejected [data up to Dec18]
Rejected cases of euro613mn [data up to Dec18] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
This law expired at the end of Feb19 and was replaced by a new law The new framework which will be in force 30 April ndash 31 December 2019 is characterized by strict eligibility criteria process acceleration reduction of recovery time and includes state subsidy Eligibility criteria
bull Objective value lt=euro250k and lt=euro175k for SBLbull Family income lt=170 of reasonable living expensesbull Total debt (capital interest expenses)lt=euro130k for mortgages and lt= euro100k for SBLbull Value of deposits amp financial products lt=50 of total debt to be settledbull Value of immovable property lt=200 of the total debt to be settled
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
04Liquidity amp Funding
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY amp FUNDING49
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at euro11bn in Dec18 (ELA euro1bn ECB euro10bn) -euro116bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro33bn in Dec18 -euro18bn vs Jun15 peak
euro1euro10
euro130
euro42
euro33
euro152
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 94 in Dec18 -44pp vs Jun15 peakDeposits up euro8bn in Dec18 yoy
Loans down euro14bn yoy in Dec18 ow euro11bn write-offs
euro170
euro134
94
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro15bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro33
euro152
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
50
42 DOMESTIC DEPOSITS PICKING UP04
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 +05 +08 +18 445
Dec15 Δ Q116 Δ Q216 Δ Q316 Δ Q416 Dec16 Δ Q117 Δ Q217 Δ Q317 Δ Q417 Dec17 Δ Q118 Δ Q218 Δ Q318 Δ Q418 Dec18
28 24
72 76
Dec18 Dec18
Business Retail
38 39
61 61
Dec18 Dec18
Time deposits Savings-Sight deposits
Domestic Deposit Mix () Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
PiraeusFY17delta
Q118delta
Q218delta
Q318delta
Q418delta
Dec18balance
Mass|Farmers +05 -01 - +01 +15 169
Affluent|Private Banking
+07 +03 +02 +01 +01 144
SB +04 - +03 +02 -05 33
SME +01 - +01 +01 -01 11
Corporate +01 -04 +01 +01 +01 25
Govt amp Other -03 +08 -01 +02 +08 63
Total +16 +05 +05 +08 +19 445
| LIQUIDITY amp FUNDING
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
04
51
43 LOW EUROSYSTEM FUNDING UTILISATION
Dec14 Dec15 Dec16 Dec17 Jun18 Sep18 Dec18
ECB 141 160 90 40 15 20 32
EFSF|ESM Bonds 57 153 73 15 - - -
GGBs and T-bills 10 - 09 10 09 - -
L3723 68 - - - - - -
Covered Bonds - - - - - 15 27
Other 06 07 08 15 06 05 05
ELA - 167 119 57 03 - -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 03 - -
Total 141 327 209 97 18 20 32
Eurosystem Funding (eurobn)
100141 149 151 146 160
124 11190
55 40 4015 20 32
154
222212 167
144127
119
103
5721
03
100
141
303
373358
327
268238
209
158
97
61
18 20 32
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16 Sep16 Dec16 Jun17 Dec17 Mar18 Jun18 Sep18 Dec18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilisation amp Buffer
1
2
ELA eliminated on 12072018
ELA collateral buffer estimated at euro15bn based on existing collateral
valuation and haircuts
| LIQUIDITY amp FUNDING
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
04
52
44 INTERBANK REPO ACTIVITY
Funding from Non-ECB Eligible Collateral (eurobn)
00
05
10
15
20
25
30
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Ap
r1
8
May
18
Jun
18
Jul1
8
Au
g18
Sep
18
Oct
18
No
v1
8
Dec
18
Interbank Repos Τrends
Increased volumes assisted reduction of Eurosystem reliance
Normalisation of volumes since Sep18 when euro40bn covered bonds became eligible for ECBrsquos Eurosystem
Open Market Operations
1
2
euro17bn
| LIQUIDITY amp FUNDING
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
53
45 COVERED BOND PRIVATE PLACEMENT TRANSACTION
The significant size of drawn liquidity long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction
Piraeus Bank issued a new 5-year euro500mn covered bond in October 2017 under Piraeus Bankrsquos euro10bn Covered Bond Programme
The covered bond was primarily placed among supranational organisations namely the European Investment Bank (EIB) the EuropeanInvestment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD) Credit Suisse acted as Dealer Manager in thetransaction
The issue was an FRN 3mEuribor + 250bps | Conditional Pass-Through structure
The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued bya Greek bank for the first time
First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship since the beginning of the financial crisis
04
| LIQUIDITY amp FUNDING
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
2
1
3
1
3
46 DEBT ISSUANCE PROGRAMMES
54
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Issuer and Guarantor
euro25000000000
Euro Medium Term Note Programme
Arranger
Goldman Sachs
Dealers
Barclays BNP ParibasCredit SuisseGoldman Sachs International Morgan StanleyUBS Investment BankPiraeus Bank SA
5 October 2018
BofA Merrill LynchCiti
Deutsche Bank HSBC
JP MorganCommerzbank
PIRAEUS BANK SAas Issuer
euro10000000000Global Covered Bond Programme
Arranger
Barclays
Dealers
Barclays Piraeus Bank SA
17 October 2018
PIRAEUS GROUP FINANCE PLCas Issuer
PIRAEUS BANK SAas Guarantor
euro5000000000 Euro-Commercial Paper Programme
Arranger
Piraeus Bank SA
Dealers
Piraeus Bank SAUBS Investment Bank
6 June 2016
0 500 1000 1500
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Public Issues (eurobn|) Piraeus Bank - Debt Issuance Programmes
1
04
| LIQUIDITY amp FUNDING
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05Appendix
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
56 | APPENDIX
51 BOARD OF DIRECTORS
Chairman
Chair of the Audit Committee Member of the Risk Management Committee Board MembersrsquoNominations Committee Remuneration Committee Strategy Committee Ethics Committeebull Chair and Board member of banks commercial institutions (EBRD Citi Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee Chair of the Nominations CommitteeMember of the Strategy Committee of the Risk Management Committee and of the Ethics Committeebull Former Senior Advisor to IMF banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee Chair of the Ethics Committee Chairman of Piraeus Cultural Foundationbull Chairman of ATHEX and HBA Former Deputy CEO of ISDA where he served since 2011 Senior
Management positions in Dresdner Kleinwort Benson BofAML and UBS in London amp NY
George Handjinicolaou
Member of the Audit Committee Board Membersrsquo Nominations Committee RemunerationCommittee Strategy Committee Ethics Committeebull Former CEO of Intesa San Paolo CEO of Think Global Investments Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Ergasias SA Vice-Chairman of Southern Europe of Credit Suisse Investment Banking Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager Piraeus Legacy Unit Member of the Executive Committee Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost) former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee Vice-Chairman of the Ethics Committee Member of the Audit Committee Strategy CommitteeFormer CEO at Dexia and Fortis Group Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee bull Founder and Managing Director of Venkon Group LLCbull Family operated business with PE investments VC investment in hi-techbull Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Ethics CommitteeCEO of Tiresias SA Group Risk Director at Eurobank
Solomon Berahas
Member of the Risk Management Committee Remuneration Committee Board Membersrsquo Nomination Committee Strategy Committee Ethics CommitteePartner at Paulson amp Co Inc
Alexander Blades
HFSF Representative Member of the Risk Management Committee Audit Committee Board Membersrsquo Nomination Committee Remuneration Committee Strategy Committee Ethics Committeebull Former CEO of SBAB Bank and Senior Executive of SEBbull Non Executive Board member of Scandinavian banks financial institutions
Per Anders Fasth
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
BoD Chairman GHandjinicolaouBoD amp BoD Committees
Retail Banking amp Distribution Networks
VKoutentakis
CEO
CMegalouCEOrsquoS OFFICE
GChristopoulos
GΚormas
SLorentziadis
GKaramousalis
CBerbati
Corporate amp Investment
BankingEVrettou
Piraeus Financial Markets
AArvanitis
Risk ManagementEKyriakopoulos
Internal AuditPTsoukatos
Group CreditEBardis
Legal ServicesGLiakopoulos
Compliance ΑΚassapakiRecovery Banking
UnitGGeorgakopoulos
Divestments
Piraeus Financial Management amp
Control ΚPaschalis
Supervisory ampRegulatory Affairs
PSkoularikis
Piraeus Legacy Unit
GGeorgakopoulos
REOGKormas
Piraeus Support
OperationsDMavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk amp Controls
Corporate GovernanceGLiakopoulos
Group Human Resources
AMakarigaki
PLU Strategy TGnardellis
52 ORGANIZATIONAL STRUCTURE05
| APPENDIX57
Group Procurement
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
64
Individuals
10
Piraeus Shareholder Structure (March 2019)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 28k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 64 by legal entities and 10 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
58
05
| APPENDIX
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
8147
8997
9184
12097
21
22
24
29
19
21
27
29
05
59 | APPENDIX
54 PIRAEUS BANK LEADING POSITION IN GREECE | Q418
Gross Loans ndash Greece () Customer Deposits ndash Greece () Greek Branch Network ()
Source Bank of Greece for Greek market data and financial information for banks as of Dec18
Headcount ndash Greece ()
350
443
461
553
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
60
55 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
25 45 24 51
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
94
74
84
17 27 42 9 23
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 90
Top-33 Index 78
TRIM Index Mean 71
Bottom-33 Index 62
Bottom-10 Index 51
Source KANTAT TNS normative database Europe 473k interviews among retail bank customers (Y2014-Y2017)
2017 93
2017 75
2017 84
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20181
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted during the periods from July 23rd to 25th and from August 23rd to October 17th 2018 by ldquoKANTAR TNSrdquo
| APPENDIX
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
61
56 FOCUS ON SUSTAINABILITY
| APPENDIX
Piraeus Bank actively participates in global sustainability initiatives follows sustainability trends and co-shapes global sustainability strategies
FTSE4Good Emerging Index
CDP (former Carbon Disclosure Project)
RobecoSAMCorporate Sustainability
Assessment for the Dow Jones Sustainability Index
MSCI ESG Research
Other assessments
Ethibel EXCELLENCE Investment Register
bull Principles for Responsible Banking Initiative | On 261118 UNEP FI (UN Environment Finance Initiative) amp 28 banks
from around the world launched the Principles for Responsible Banking with Piraeus Bank being the only Greek Bank
actively participating in developing the set of Principles
bull The most prominent global sustainability rating agencies analyze and assess Piraeus Bankrsquos sustainability practices since
2008 Piraeus Bank ranks top in Greece and well above average globally in all assessments Through these
evaluations the Bank improves its performance and attests to the global investment community that it is a sustainable
and responsible Bank
bull Piraeus Bank participates in the following sustainability ESG initiatives and assessments
Environmental social and governance
UN Global Compact
Sustainable Development Goals
ISS-oekomEnvironmental amp Social Quality Score
UN Caring for Climate
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
62 | APPENDIX
57 GROUP RESULTS | QUARTERLY EVOLUTION
(euromn) Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418
Net Interest Income 420 414 415 390 353 352 349 355
Net Fee Income 70 72 112 76 69 70 124 76
Trading amp Other Income 27 69 24 -1 26 36 26 45
Total Net Revenues 517 556 551 464 448 458 499 477
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129)
Depreciation amp Other (24) (23) (24) (28) (27) (25) (26) (26)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250)
Pre Provision Income 255 298 291 139 64 196 253 208
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226
Result from Associates (7) (19) 4 (8) (8) (16) 11 28
Impairment on Loans (258) (264) (310) (1189) (163) (149) (149) (137)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64)
Pre Tax Result (20) (2) (21) (1176) (115) 51 110 34
Tax 13 10 2 1181 35 (29) (17) 103
Net Result Attrib to SHs (7) 10 (18) 6 (79) 24 94 145
Minorities 0 (1) (1) (2) (1) (2) (1) (7)
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4)
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
63 | APPENDIX
58 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 64947 58627 53749 52788 51475 -2 -12
Business 42511 37962 34057 33233 32144 -3 -15
Mortgages 16162 15183 14757 14627 14523 -1 -4
Consumer 6274 5482 4934 4928 4808 -2 -12
Greece 61296 56597 52623 51687 50382 -3 -11
Business 39792 36317 33113 32310 31215 -3 -14
Mortgages 15707 14973 14700 14574 14474 -1 -3
Consumer 5797 5307 4809 4803 4693 -2 -12
Intrsquol 3650 2030 1126 1101 1093 -1 -46
Business 2719 1645 944 922 928 1 -44
Mortgages 455 210 57 53 49 -8 -77
Consumer 476 175 125 125 116 -8 -34
Deposits Evolution (euromn)
Dec16 Dec17 Jun18 Sep18 Dec18 qoq yoy
Group 42365 42715 42102 42886 44739 4 5
Savings 14995 15134 14430 14496 15323 6 1
Sight 11190 11682 10851 11245 12013 7 3
Time 16179 15900 16821 17146 17402 1 9
Greece 39322 40889 41903 42687 44536 4 9
Savings 14613 14825 14415 14481 15309 6 3
Sight 10536 11125 10765 11157 11927 7 7
Time 14172 14938 16723 17048 17300 1 16
Intrsquol 3043 1826 199 200 203 1 -89
Savings 382 309 15 15 14 -3 -95
Sight 654 556 86 87 86 -1 -84
Time 2007 961 98 98 102 4 -89
Notes loan balances exclude seasonal agri-loan of euro17bn for Dec16 and euro16 for Dec17 and Dec18 Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwardsPiraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
64 | APPENDIX
59 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Loans (eurobn)
Dec171 Mar18 Jun18 Sep18 Dec181 Δyoy
Stage 1 192 189 186 184 176 -16
Stage 2 69 70 59 59 59 -10
Stage 3 323 318 293 285 280 -43
Total 584 577 537 528 515 -69
Coverage ()Dec18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 3 13 7 6
Stage 3 27 65 49 46
Total 13 42 30 26
47 49
Dec17 Dec18
NPE Coverage Evolution ()
(1) excluding seasonal loan to farmers (euro16bn) Loans for all periods exclude balances accounted for at FVT PampL
IAS 39 IFRS 9
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
65
510 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
| APPENDIX
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05
66
511 CONTINGENT CONVERTIBLE BONDS
| APPENDIX
Term amp Ranking
Payment of interest
Perpetual
Pari passu with common equity junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8 per annum (initial interest rate)
Post 7 years interest rate calculated as prevailing 7y Mid-swap rate + (8 less 7y Mid-swap rate at issuance 7543 per cent pa)
Conversion events
The securities shall automatically convert into ordinary shares if
At any time the CET1 ratio calculated on a consolidated basis or a solo basis falls below 7
2 annual coupons are missed (in whole or in part and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116 of the nominal amount of the outstanding securities divided by the
conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may in its sole discretion repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework
of SSM at their initial nominal amount plus any interest accrued but unpaid unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator per Art 7(5)(b) of the HFSF Law
Issue Size euro2040000000
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
512 CREDIT RATINGS
Piraeus Bank | Long Term Rating
05
| APPENDIX67
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece Country Rating
Greece Country Ceiling
Piraeus Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
Ma
r-10
Au
g-1
0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
De
c-13
Ma
y-1
4
Oct
-14
Ma
r-15
Au
g-1
5
De
c-15
Ma
y-1
6
Oct
-16
Ma
r-17
Au
g-1
7
Jan
-18
Jun
-18
No
v-1
8
Ap
r-1
9
Moodys
SampP
Fitch
A2AA3A-
Baa1BBB+Baa2BBBBaa3BBB-
Ba1ΒΒ+Ba2ΒΒBa3ΒΒ-
B1B+B2BB3B-
Caa1CCC+Caa2CCC
RD
Caa3CCC-CaCC
CaC
D
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 513 EMTN PROGRAMME
68
- Established in 2004 and updated on annual basis the EMTN Programme is theBankrsquos funding mainstay offering unparalleled flexibility and recognition
- The EMTN platform is capable of supporting the issuance of debt throughPiraeus Group Finance or Piraeus directly in various formats including
bull Senior Unsecuredbull Tier 2bull Pillar II Bonds (L3723 - guaranteed by the Greek state)
- 11 public debt transactions of euro53bn
- Max EMTN Senior outstanding euro29bn in Jun 2007 (exc Pillar II bonds)
- 26 Pillar II Bonds | Max outstanding euro152bn in Q2 2012
Key TakeawaysTerms and Conditions
Issuer(s) Piraeus Bank SA Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Guarantor Senior Rating Caa2 B- RD (MSF) [ as per October 2018 ]
Programme Rating Caa2 B- CC (MSF)
Status Senior or Subordinated
Distribution Wholesale (Public Issues Private Placements)
Programme Size EUR 250 billion
Currencies All major convertible currencies
Tenors Unlimited
Exchange Listing Luxembourg
Arranger Goldman Sachs International
Dealer Group
Barclays BofA Merrill Lynch UBS
BNP Paribas Citi Commerzbank
Goldman Sachs HSBC JP Morgan
Credit Suisse Morgan Stanley Deutsche Bank
Piraeus Bank
Agent Deutsche Bank AG London Branch
Paying Agent Deutsche Bank Luxembourg SA
Listing Agent Deutsche Bank Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Legal Advisers - English Law Allen amp Overy LLP (to Piraeus PLC and Piraeus Bank)
Legal Advisers - English Law Clifford Chance LLP (to the Arranger and Dealers)
Legal Advisers - Greek Law Mamp P Bernitsas (to Piraeus PLC and Piraeus Bank)
Rating Agencies Moodys SampP Fitch
Law English Law
Programme Signed on 5-Oct-18
as per Signing Date 5 Oct 2018
Outstanding Amount Annual Issuance Activity
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Hybrid LT2 Senior
0100020003000400050006000700080009000
1000011000120001300014000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pillar II (L3723) LT2 + Hybrid Senior
27000
(mn) (mn)
| APPENDIX
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 514 COVERED BOND PROGRAMME
69
- euro10bn Covered Bond Programme established in 2011 (upsized from euro3bn in 2014)
- Conditional Pass-Through structure (since December 2014) | ContractuallyCommitted Overcollateralization (OC) of 25 (since December 2014)
- Investor Repurchase Put (introduced in August 2016)
- 7 Covered Bond Series of euro65bn in total issued off the Programme
- Max outstanding issues 5 Covered Bond Series of euro45bn currently outstanding
- ldquoInvestment Graderdquo rating by DBRS (since 31 August 2018) | ECB eligibility achieved
- Current Ratings ldquoBBB (low)rdquo by DBRS and ldquoBBrdquo by Fitch
Terms and Conditions
Issuer Piraeus Bank SA
Cover Pool Greek residential mortgages
Issuer Sr Unsecured Rating Caa2 B- CC (MSF)
Programme Ratings BB- (Fitch) | BBB low (DBRS)
Status Senior
Distribution Public issues or private placements
Programme Size EUR 100 billion
Currencies Any major
Tenors Unlimited
Exchange Listing Luxembourg Stock Exchange
Arranger Barclays Bank PLC
Dealers Barclays Bank PLC Piraeus Bank SA
Trustee Citicorp Trustee Co Ltd
Principal Paying Agent Citibank NA London Branch
Account Bank Citibank NA London Branch
Registrar Citibank NA London Branch
Listing Agent Banque Internationale agrave Luxembourg SA
Auditors Deloitte Certified Public Accountants SA
Asset Monitor PricewaterhouseCoopers
Law English Law
Programme Signed on 17 October 2018
as per Signing Date 17 Oct 2018
Key Takeaways
1250 1250 1250 2000 10 02500
4500 4500
0
1000
2000
3000
4000
5000
2011 2012 2013 2014 2015 2016 2017 2018 2019
CB Programme Establishment| Sizeeuro3bn | ldquoA-rdquo (Fitch) CB Programme
upsized at euro10bn
CPTRestructuring
Partial Cancellationof Series 1amp2
Private Placementof euro500mn with Supras
ldquoInvestment Graderdquo RatingBBB(low) by DBRS
InvestorRepurchase Put
Downgrade by Fitchbelow IG
(mn)Outstanding CBs amp Key Events
| APPENDIX
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 515 COVERED BOND STRUCTURE
70 | APPENDIX
1
2
3
4
5
6
Direct issuance structure allowing Piraeus to carry out a covered bondtransaction by constituting an eligible cover pool as a segregated poolof dedicated assets
A dynamic cover pool of residential loans is encumbered by a pledgein favor of the covered bondholders whose claims are associated withthe issuance of the bonds
The loans constituting the Cover Pool are not transferred to separateentity continued to be serviced by Piraeus Bank and are isolated fromits remaining assets
There are three statutory tests (eg NPV Nominal Value and InterestCoverage) which will be performed on a quarterly basis and anAmortisation Test which is to be performed on a monthly basisfollowing an Issuer Event
Hedging Agreements (if required)bull One or more interest rate swaps may mitigate interest rates mismatchesbull One or more cross currency hedging agreement may be entered into to
convert any foreign currency risk
Covered Bonds benefit from a ldquoDual Recourserdquo (Piraeus Bank andcollateral backing) nature| Extra level of recourse is the maindifference with ABS
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 516 COVERED BOND OUTSTANDING SERIES
71 | APPENDIX
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 517 COVERED BOND PROGRAMME DESCRIPTION
72 | APPENDIX
Issuer Piraeus Bank SA
Servicer Piraeus Bank SA
Amount EUR10bn
Listing Luxembourg Stock Exchange
Governing Law Greek Covered Bond Law Contractual terms governed by English law
Arranger Barclays
Rating Agencies Fitch DBRS
Coupon The programme will give the issuer the flexibility to choose the most appropriate payment type (ie fixed floating etc)
Further Issues Permitted subject to satisfaction of statutory tests and other regulatory requirements
Substitution Permitted subject to various provisions and eligibility criteria
RankingAll covered bonds will rank pari passu and pro rata without any preference or priority among themselves irrespective of their series for all purposes
except for their respective issue dates interest commencement dates andor issue prices
Security Collateralised fixed and floating charges over a pool of Greek residential mortgages
RepaymentConditional Pass-Through liquidity risk is mitigated by an extension period during which there will be a best efforts sale of an appropriate part of the
cover pool every 6 months for a price at least equal to the Adjusted Required Redemption Amount (ARRA)
Expected Maturity Varies for each series and as Piraeus Bank deems appropriate
Extended Final Maturity
Date
Should the issuer fail to pay on the final maturity date payments will be deferred until the extended maturity date (the date falling 46 years after the
final maturity date of each series)
Maximum
Loan-to-Value80 for residential mortgages as defined by Greek Covered Bond Law
PortfolioFully-drawn first ranking mortgages and or mortgage prenotation denominated in Euros backed by completed residential properties in Greece and
originated by Piraeus Bank
HedgingIf and when required for a series and cover pool appropriately rated third parties will provide interest rate and cross-currency swaps to the
transaction Currently there is no hedging in place
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 518 INVESTOR REPURCHASE PUT
73 | APPENDIX
Investor Repurchase
Put
bull If an investor repurchase put is specified in the Final Terms of the CB series then if and to the extent that the Issuer does not
redeem the CB series in full on the FMD (taking account any grace periods) the Covered Bondholder has the option to give a
ldquonot less than 30 nor more than 60 daysrdquo notice to the Issuer upon the expiry of which the Issuer will be required to
repurchase the CB series (on the date specified in this notice)
bull If this Covered Bond is in definitive form to exercise the right to require redemption of this Covered Bond the holder of this
Covered Bond must deliver such Covered Bond on any Business Day falling within the above-mentioned notice period at the
specified office of any Paying Agent accompanied by a duly signed and completed notice of exercise of the Investor
Repurchase Put
bull Any notice given by a Covered Bondholder of any Covered Bond shall be irrevocable
bull Any failure by the Issuer to repurchase Covered Bonds pursuant to this condition shall not constitute an Event of Default
SummaryPiraeus Bank Covered Bonds embed an innovative feature namely the ldquoInvestor Repurchase Putrdquo that is there in order to reduce the risk of discretionarymaturity extension on behalf of the Issuer (the case in a typical Conditional Pass Through Structure) In the context of such option in the event that the issuerdoes not redeem the CB series in full on the Final Maturity Date (taking account any grace periods) the CBs holders have the option which if exercisedrequires the issuer to repurchase their CBs at par Any failure by the issuer to repurchase the CBs shall not constitute an Event of Default under the CBsProgramme but it would trigger a cross-default for other Piraeus Bank Programmes (including the EMTN Programme)
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 519 SECURITISATIONS
74 | APPENDIX
Selected Historical Information
10 ABS issued during 2005-2009 (euro10bn)
RMBS (4) | SME (3) | Consumer (2) | Leasing (1)
3 RMBS originally placed with investors
Estia I (euro750mn) | Estia II (euro1250mn) | Kion (euro600mn)
7 ABS currently outstanding (~ euro1739mn)
~ euro56mn in circulation - Estia I (euro10mn) | Estia II (euro33mn) | Kion (euro13mn)
~ euro1683mn retained and form eligible collateral for interbank repos
1
2
3
4
Structure
Outstanding Amount - Placed Securitisations (euromn)
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Annual ABS Issuance Activity (euromn)
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
05 520 EURO COMMERCIAL PAPER PROGRAMME
75
- Unsecured funding platform short-term debt instrument with maturitylt1yr
- Established in 2003 | Original Programme Size euro15bn
- Programme size further increases to euro3bn in 2005 and to euro5bn in 2006
- Piraeus ECP Programme last updated in June lsquo16
- Max ECP outstanding euro37bn (Feb lsquo08) | 85 Institutional Investors from 13countries
- Fully transferable securities | Clearing Euroclear Clearstream
Terms and Conditions
Issuer Piraeus Group Finance Plc
Guarantor Piraeus Bank SA
Arranger Piraeus Bank SA
Dealers Piraeus Bank SA
UBS Limited
Ratings NP C C (Moodys SampP Fitch)
Type of Debt Senior
Programme Size EUR 50 billion
Currencies All major convertible currencies
Maturity Tenor from 1 to 364 days
Yield Basis Issued at discount or coupon bearing
Form of the Notes Bearer Form
Denominations USD 500000 EUR 500000 GBP 100000 JPY 100 million
Listing Not Listed
Governing Law English Law
Selling Restrictions
The offering and sale of the Notes is subject to all applicable
selling restrictions including without limitation those of the
United States of America the United Kingdom Japan and
Greece (see ldquoSelling Restrictionsrdquo in the applicable
Information Memorandum)
as per Signing Date 6 June 2016
Key Takeaways
1635
2145
2910
505 410 65 0
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
(mn)Outstanding Amount
| APPENDIX
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
76 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
bull In Q32018 euro48mn of net fee and commission income relating to an extraordinary quality commission received for pastperformance in our cooperation for general insurance business with an international partner was classified as one-off
bull In Q22018 euro24mn loss in other income was flagged as one-off euro67mn of a reversal of loan impairments and euro32mnof impairments on other assets were classified as one-off
bull In Q12018 euro132mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs in Q32018 and in Q42018 euro4mn and euro18mn respectively of Voluntary Exit were classified as one-off (ldquoVES One-Offrdquo) In Q42017 euro16mn of Voluntary Exit Scheme staff costs were classified as one-off
bull In Q32017 euro35mn of net fee and commission income relating to a bancassurance persistency fee was classified as one-off
bull In Q22017 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair value was classified as one-off ldquo(Picar One-Offrdquo)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding Non Recurring (One-off) Items
7 Pre Provision Income (PPI) Profit before provisions impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax ResultsPre Tax profits Profit (loss) before income tax (PBT)
11 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro35bn at the end of 2018 euro40bn at the end of Q32018 and to euro58bn at the end of 2017
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
77 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assetsTotal assets excluding assets amounting to 1) euro33bn in 2018 of discontinued operations in Albania and Bulgaria a seasonal agri-loan and other discontinued operations 2) euro75bn in December 2017 consisting of discontinued operations in AlbaniaBulgaria Romania Serbia seasonal agri-loan the EFSF ESM bonds plus other discontinued operations
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and other stakes
23 IFRS 9 First Time Adoption (FTA) The final impact of euro20 billion on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortisedcost gross of PPA adjustments that are (a) 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) subject to contagion from (a) under EBA rules and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
78 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments ie loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves ndash LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
79 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 292 mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the banks available stable funding (AFS) to its required stable funding (RSF) A banks total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year A banks total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures
47 DTAs Deferred Tax Assets
48 DTC Deferred tax credit
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
80
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer thepresentation that follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which thepresentation is made or otherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand thelegal and regulatory sanctions attached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidentialand is solely for the use of the intended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capitalThis presentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives orlegal accounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on theinformation contained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solelyresponsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person for any of the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liabilitywhich may arise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation toupdate any of the information contained in this presentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other personBy accepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measuresshould be considered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directorsconcerning the foregoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the controlof the Bank Therefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available tous and if any one or more of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business ifthere are such differences our future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only as of the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
Piraeus Financial Markets
Tom Arvanitis | Head of PFM
Dimitris Spathakis| Head of Treasury
treasurypiraeusbankgr
investor_relationspiraeusbankgr
Bloomberg TPEIR GA
Reuters BOPrAT
wwwpiraeusbankgroupcom
Investor Relations
Chryssanthi Berbati
Xenofon Damalas CFA
Αntonios Sagris
Latest update 09 May 2019
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026
wwwpiraeusbankgroupcom
