Nti lNational BkB ank of Greece - NBG · PDF fileNational Bank of Greece | Covered Bond Programme NBG today: At a glance • Largest and oldest financial institution in Greece •

N ti l B k f GNational Bank of Greece

Covered Bond ProgrammeCovered Bond ProgrammeSeptember, 2009

National Bank of Greece | Covered Bond Programme

Disclaimer

This presentation contains forward‐looking statements. Such statements include, but are not limited to, discussionsregarding targets under average economic and market conditions, our objectives and strategies, and future results ofregarding targets under average economic and market conditions, our objectives and strategies, and future results ofour operations, together with the assumptions regarding the business environment and risk conditions in relianceupon which such statements are made. Such statements can be generally identified by the use of terms such as“believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “plans,” “anticipates” and comparable terms, and thenegatives of such terms.

However, by their nature, these forward‐looking statements involve numerous assumptions and uncertainties, bothgeneral and specific. Actual results could differ materially from those expressed or implied in any such statements, inparticular as a result of factors such as fluctuations in interest rates, exchange rates and stock indices, the effects ofcompetition in the areas in which we operate, and changes in economic, political, regulatory and technological

di i i h h f i li i h iconditions. We caution that the foregoing list is not exhaustive.

When relying on forward‐looking statements to make decisions, investors should carefully consider theaforementioned factors as well as other uncertainties and circumstances.

We undertake no obligation to publicly update or revise any forward‐looking statements, whether as a result of newinformation, future events or otherwise. Any statements regarding past trends or activities should not be taken as arepresentation that such trends or activities will continue in the future.

page 2


Overview and Financial PerformanceOverview and Financial PerformanceSeptember, 2009

Covered Bond Programme


NBG today: At a glance

• Largest and oldest financial institution in Greece

• Average 22% market share in Greek market with approximately 7.0 mn clients

• Largest listed company in Greece by market capitalization; 11th largest EU bank

• Diversification of income sources; top positions in strategic emerging markets, SEE and Turkey

• Superiorly positioned for current environment

Sound balance sheet and a conservative risk management strategy Sound balance sheet and a conservative risk management strategy

Robust capital base

Superior liquidity position

Resilient top‐line, despite challenging operating conditions, complemented by strict cost containment

Regional leadership in attractive growth markets; strong future growth platform Regional leadership in attractive growth markets; strong future growth platform

• Rating: Moody’s: Aa3, Fitch: A‐, S&P: BBB+

page 4


History: almost 170 years of successful operation

1841 ‐ National Bank of Greece S.A. (NBG) was founded

1891 ‐ NBG founded Ethiniki Hellenic General Insurance Company

1880 ‐ NBG listed on the Athens Stock Exchange

1927 ‐ NBG founded National Mortgage Bank

1928 ‐ The establishment of the Central Bank of Greece, ends NBG’s responsibility to issue currency in Greece in addition to its commercial banking services

1953 ‐ NBG merged with Bank of Athens S.A.

1998 ‐ NBG merged through absorption with its subsidiary "National Mortgage Bank of Greece S.A.", in order to provide integrated mortgage lending services to its customers

1999 ‐ NBG listed on the New York Stock Exchange

2002 ‐ NBG acquired United Bulgarian Bank in Bulgaria and Stopanska Banka in FYROM

2002 ‐ NBG merged with its subsidiary “National Bank for Industrial Development SA”

2003 ‐ NBG acquired Banca Romaneasca in Romania

page 5

2006 ‐ NBG acquired Finansbank in Turkey and Vojvodjanska Banka in Serbia


An established leader, with over 15 years of experience in the broader region

Total presence Diversified footprint in adjacent markets

Branches 283

Loans/GDP% 72.5

GDP per capita ($) 12,341

Bulgaria

Branches 151

Loans/GDP% 38.5


Romania

Branches 65

Loans/GDP% 43.6


FYROMGreece 85.4 575 16.2

Assets (€bn)

Branches Employees(000s)

o a aFYROM

Branches 204

Loans/GDP% 39.6

GDP i ($) 10 792

Greece 85.4 575 16.2

Turkey 14.2 461 11.0


Serbia

Albania

SEE 10.9 772 9.8

Group 110.5 1 808 37.0Branches 30

Loans/GDP% 35.6

GDP per capita ($) 6,859• NBG is a regional leader in attractive

growth markets and is committed to market leadership in its core markets of

TurkeyGreece Cyprus

market leadership in its core markets of Greece, Turkey and SEE

• Growth rates in NBG’s target markets expected to outperform relative to Euro area

page 6

Branches 459

Loans/GDP% 36.1


Branches 579

Loans/GDP% 102.7


Branches 16

Loans/GDP% 278


area

– Low loan penetration

– Low GDP per Capita

Source: International Monetary Fund, World Economic Database, April 2009 ‐ GDP per capital data are on PPP basis


1st Half 2009: Strong Group results across all four areas of focus

Conservative Risk ManagementSustainable Earnings Power

NPLs up 65bps qoq to 4.4% with cash coverage at 67%

Q2.09 charge‐offs peak at €260mn or 157bps (+13bps qoq), in‐line with guidance

Attributable PAT for H1.09 at €708mn, with Q2.09 at €391mn, up +23% qoq

Solid Q2.09 pre‐provision earnings at €814mn (484bps), up +23%

Attributable PAT for H1.09 at €708mn, with Q2.09 at €391mn, up +23% qoq

Solid Q2.09 pre‐provision earnings at €814mn (484bps), up +23% qoq

NPLs up 65bps qoq to 4.4% with cash coverage at 67%

Q2.09 charge‐offs peak at €260mn or 157bps (+13bps qoq), in‐line with guidance

Conservative portfolio, focused on secured credit (85%)

Bond portfolio dominated by GGBs: +€300mm AFS reserve gain in Q2

+23% qoq

NII up 11% yoy and +2% qoq keeping NIM above 400bps

Cost : Income at an all time record low of 43%

+23% qoq

NII up 11% yoy and +2% qoq keeping NIM above 400bps

Cost : Income at an all time record low of 43%

Conservative portfolio, focused on secured credit (85%)

Bond portfolio dominated by GGBs: +€300mm AFS reserve gain in Q2

St Li idit C it l M t

Loan/Deposits ratio improves at 94% in Q2.09

Balanced loan growth of €2 4bn ytd fully matched by

€1.25bn July 09’ rights issue 2.2x covered

52bps internal capital generation in Q2 09 alone

Strong Liquidity Capital Management

€1.25bn July 09’ rights issue, 2.2x covered

52bps internal capital generation in Q2.09 alone

Loan/Deposits ratio improves to 94% in Q2.09

Balanced loan growth of €2.4bn ytd fully matched by deposits Balanced loan growth of €2.4bn ytd fully matched by deposits gathering of €3.0bn ytd .

Shift to core deposits adds €1.8bn of core in Q2

Market share in savings accounts firm at 33%

52bps internal capital generation in Q2.09 alone

€1bn Hybrid buyback added 25 bps in core equity

Pro forma Tier I at 12.2% with Core Tier I at an industry high of 10.8%

p p g Q

€450mn Hybrid buyback added 25bps in core equity

Pro forma Tier I at 12.2% with Core Tier I at an industry high of 10.8%

h f l

g f y f y y pgathering of €3.0bn ytd .

Shift to core deposits adds €1.8bn of core deposits in Q2

Market share in savings accounts firm at 33%

page 7

Customer deposits at 73% of total funding pool TCE to TA at 5.4% with 16% of Total Assets in GGBsTCE to TA at 5.4% with 16% of Total Assets in GGBsCustomer deposits at 73% of total funding pool


Strong top‐line confirms earnings power sustainability

Pre‐Provision EarningsPre‐provision Earnings Profit After Tax Return on Equity

25%

30%

1 216

… generate pre‐crisis returnsStrong pre‐provision earnings (even before trading )

Trading gains

… support bottom line

814

RoE 24%

€1 477mn+21% yoy €708mn

13% yoy

22%20%

25%

662€814mn+23% qoq

g

317€391mn+23% qoq

RoE 24%RoTE at 37%

‐13% yoy

15%Q2.08 Q3.08 Q4.08 Q1.09 Q2.09H1.08 H1.09 Q1.09 Q2.09 H1.08 H1.09 Q1.09 Q2.09

Net Interest Income & Margin Income vs. OpEx Cost : Income

Resilience in the top line combined with …

9459681000 460

… cost control across the Group

NII (€mn) NIM (bps)

… results in record low C/I

47%

44%

46%

1200

1500 €1 396mn+14% qoqIncome

850

900

950

410403

400

420

44043%

600

900

1200

€581mn+3% qoq

Opex

page 8

800

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

380

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09 H1.08 H1.09 Q1.09 Q2.09

300

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

q q


Solid pre‐provision earnings in all regions

Pre‐provision Earnings: Greece Pre‐provision Earnings: Turkey Pre‐provision Earnings: SEE

€933mn

Pre‐provision earnings up yoy and qoq … … substantially so in Turkey …and flat in SEE

+25% yoy €146mn+0% yoy

146

€537

610

TRY 853mn+40% yoy748

73

€537mn+35% qoq

417 TRY 436mn+5% qoq €73mn

+0% qoq

396

H1.08 H1.09 Q1.09 Q2.09H1.08 H1.09 Q1.09 Q2.09

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

H1.08 H1.09 Q1.09 Q2.09

617650

NII (€mn) NIM (bps)360

499550

736

800 135 520

… NIM trending up in Turkey with record NIILoan spread expansion offsets deposit margin pressure … reversal of NIM compression trend in Q2.09

NII (TRYmn) NIM (bps) NII (€mn) NIM (bps)

605

550

600336

327

320

340482

499

400

450

500704

736

620

680

740 117 118

105

120

428 433 440

480

page 9

500

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

300

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

350

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

560

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

90

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

400

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09


Ambitious cost cutting program underway

Cost Review Initiatives: SummaryCost/Income by Region

€378mn

>110 specific opportunities being addressed through targeted projects

Personnel

• Compensation review (incentives)

• Headcount managementBenefits re ie

€54mn

Cost/Income & Opex: Greece

48%

41%

qoq evolution points to improving trend

368+3% qoq

Seasonal businesses account for bulk of

increase

Demand Management

• Benefits review• Prioritisation of training needs• Reduction of overtime

• Travel demand management and policy revision

• Reduction of discretionary demand€10mnQ1.09 Q2.09

41% 368

Q1.09 Q2.09

TRY 283mn+6% qoq

One‐off salaryInfrastructure

• Reduction of discretionary demand of consumables and services

• Restructuring of telecoms network and contracts• Review and outsourcing of office printing and

supportf / /

€9mn

Cost/Income & Opex: Turkey

39% 39% 268

One‐off salary adjustment

Real Estate

• Aggressive review and sourcing of IT H/W and S/W purchases

• Consolidation of statement printing and posting

• Renegotiation of rents• Reduction of repair and maintenance unit

€4mnQ1.09 Q2.09 Q1.09 Q2.09

‐5% qoqPersonnel expenses

costs

Business Related

• Review of marketing spend• Renegotiation and management of intermediary

commissions• Reduction of professional services expenses

€29mn

Cost/Income & Opex: SEE

50% 49% 74€70mn

page 10

Personnel expenses down ‐9% qoq

• Reduction of professional services expenses• Restructuring of promotional expenses

Q1.09 Q2.09 Q1.09 Q2.09


Loan growth predominantly in Greece in view of declining activity in EMs

Loan Book: Greece Loan Book: Turkey Loan Book: SEE & Cyprus

42 2

46.1

Another quarter of loan expansion in Greece …

€48.6 bn

+15% yoy+5% ytd

… flat in Turkey

22.8TRY 22.8bn

+10% yoy+0% ytd

… and moderate contraction in SEE

7.4

8.3 SEE: €8.2 bn+10% yoy‐2% ytd

42.2 +5% ytd

20.8

y

1.1 1.1Cyprus: €1.1bn

Η1.08 FY.08 Η1.09 Η1.08 FY.08 Η1.09 Η1.08 FY.08 Η1.09

Deposits: Greece Deposits: Turkey Deposits: SEE & Cyprus

… term liquidity allows for funding cost optimization

14.1

15.9 TRY 15.1bn

+7% yoy

Deposit gathering exceeds loan growth in Greece …

€58.6 bn

+13% yoy

… increased market share in a tough environment

SEE: €4.4bn+6% yoy1% d+7% yoy

‐5% ytd+1.5bn TRY of

deposits recouped since end of Q2

51.7

55.3 +6% ytd

0.8 0.7

4.1 4.3

+1% ytd

Cyprus: €0.8bn

page 11

Η1.08 FY.08 1Η.09Η1.08 FY.08 Η1.09

0.7

Η1.08 FY.08 1Η.09


Asset quality deteriorated in Q2 but trend has decelerated

NPLs & Cash Coverage Cost of Risk Pre‐Provision Margins (Q2.09)

779215

144157

228 235260 bps€mn

4%

5% 75%70%

NPLs at 4.4% of loan book and coverage at 67% Cost of risk up 13bps in line with guidance

3.7%

67%

… with comfortable pre‐provision margins

Pre‐provision earnings % loans (bps) Cost of risk % loans (bps)

Turkey4.4%

+65bps56%

484

456

351

157

135

25464

92111

2%

3%

3.7% SEE

Greece

Group

+45bps

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

Q1.07

Q2.07

Q3.07

Q4.07

Q1.08

Q2.08

Q3.08

Q4.08

Q1.09

Q2.09

Q4.08

Q1.09

Q2.09

IFRS7

NPLs Formation Domestic Retail +90dpd Formation

+120

+150 Q209

… but signs of easing off in late Q2NPLs generation peaks in Q2 …

NPL formation (€mn) Q2.09 Q1.09 ‐/+ qoq

Domestic operations:

p

being particularly high in consumer lending …

4.5%

3.7%NPLs Q1.09

+90dpd (IFRS7) Q1.09

+30

+60

+90

+120

Average 2008

Mortgages +86 +80 +6

Consumer lending +164 +161 +3

Small Business +33 +9 +24

Corporate +34 +16 +18

Total Domestic +318 +266 +52

+12bps

+23

+4

+3

+15

Mortgages

Consumer

SBLs

Corporate

Turkey

+65bps

page 12

+0

30

Jul‐0

8

Aug

‐08

Sep‐08

Oct‐08

Nov

‐08

Dec‐08

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

e age 008Total Domestic 318 266 52

Turkey +95 +76 +19

SEE +58 +77 ‐19

Group +471 +419 +52

4.4%

5.1%

+7bps

y

SEE

NPLs Q2.09

+90dpd (IFRS7) Q2.09


A low risk, well positioned securities portfolio

Fixed Income Portfolio Fixed Income Portfolio: Breakdown

0.6 13.0 7.1 3.8

AFS

53%

(€bn)LaR TradingHTM

29% 15%3%

(€bn)

13

15

23

25

Group Bond Portfolio AFS Bond Portfolio

(€bn)24.5

13.0

19.7 2.1 2.2 0.4

GGBs & EU BondsTurkish & Other Govies

81% 9% 9% 2%

CorporatesFinancials

8

1008 09 09

18

20

08 09 09

Greek Government Bonds: Credit Spreads

S d d G 5Y CDS

AFS Reserve Movement

(€mn)

Q4.0

Q1.0

Q2.0

Q4.0

Q1.0

Q2.0

Spread over Bund Greece 5Yr CDS

200

250

300

109

0

200 Waning of risk aversion in Q2 and appropriate

positioning and sizing of portfolio led to gains in

the AFS reserve

+€299mn

200

250

300

3503yr Spread

10yr Spread

0

50

100

150

‐538

‐109

‐600

‐400

‐200

8 9 9 0

50

100

150

200

page 13

31/1/08

31/3/08

31/5/08

31/7/08

1/10/08

1/12/08

1/2/09

1/4/09

1/6/09

1/8/09

Q4.08

Q1.09

Q2.09

18/3/08

18/5/08

18/7/08

18/9/08

18/11/08

18/1/09

18/3/09

18/5/09

18/7/09


Ample funding dominated by high quality customer deposits

Loans / Deposits Maturity ProfileFunding structure

Net interbank

92%94%

95% 95% 95% 94%2%

13%12.7bn

2.1bn

73% of funding emanates from deposits … L:D improves despite loan growth … insignificant repayments of wholesale funding

only 1/3 of GGBs stock repoed

854

1,077 1,141

818

€mn

ECB repos 92%

3%2.9bn

repoed

21079 100 88 77 90

16460

ECB repos

Senior debt

Q1.08 Q2.08 Q3.08 Q4.08 Q1.09 Q2.0941%

Domestic Market Shares

39.8bn

Sources / Uses of funds (qoq)Inexpensive undated

Oct 09

Dec 09

Feb 10

Jun 10

Jun 10

Mar 11

Jun 11

Dec 12

Dec 13

Dec 14

Dec 15

>201

5

Term deposits

Securities32%

Domestic Market Shares

30.8bn

/ (q q)

+0 9+0.9

Inexpensive, undated deposits with a

blended cost of just 35bps Another quarter of liquidity gathering…

35%

40%

33%SavingsCore deposits

9%9.1bn

Loans+0.9

+0.315%

20%

25%

30% Savings

24%Total deposits

p

Equity, Prefs & hybrid securities

page 14

Deposits ECB repos, senior debt & interbank+1.6

10%

Jan0

8

Mar08

May08

July08

Sep0

8

Nov08

Jan0

9

Mar09

May09


Recent rights issue positions NBG ahead of European peers

Accounting Equity Movement Pro‐forma financials Terms & conditions

• Capital increase of €1.25 bn; 110.4mn new shares issued; 22% of total shares outstanding

• Subscription price €11.30 per share; 2 new shares for every 9 existing ordinary h

€mn Reported Pro‐forma

Number of shares 497 607 +110

Balance Sheet as of June 30th, 2009

6,154

+391PAT Q2.09

Equity 31.3

€mn

shares

• Approximately 40% discount to TERP; 45% discount to closing share price (15 June 09)

• Completed on the 29th of July; covered 2.2x

Equity 7 226 8 586 +1 364

Book value per share €14.55 €14.14

Equity */ Assets 6.2% 7.5% 123bps

TCE */ TA 4.1% 5.4% 126bps

+299

+78

+51

Treasury stock placement

FX translation (Reserves)

AFS movement

+725

TCE/TA: DJStoxx600 Banks Index

*excludes minorities & State prefs+48

‐101

‐40

FX translation (Goodwill)

Prefs dividends

Other

5.4%

5%

6%

7%

8%

9%

NBG Q2.09

Pro‐forma; after the capital increaseNBG Q2.097,226

+347

+166

Equity 30.6

July 09 Tier 1 buy‐back

State Preference Shares

4.1%

1%

2%

3%

4%

5%European average: 3.9%

8,586

+1,194July 09 rights issue

30.6 Pro‐forma

page 15

0%

*latest available data


Bottom line performance attests to franchise strength

Profitability Benchmarking: RoE & RoRWA (DJ Stoxx 600 Banks)EPS Calculation

€mn 30.6.09NBG Q2.093%

Earnings Per Share Return on Common EquityReturn on Risk Weighted Assets

Net Income 708

‐ Hybrid dividends (1) ‐69

‐ US Pref. dividends (1) ‐42

State Pref dividends 4

15%

25% 24%

2%

NBG Q2.09

2.4%

‐ State Pref. dividends ‐4

Earnings to common shareholders 593

Number of shares of EPS calculation 493

Bonus element of Jul. 09 rights issue (2) x 1.082

5%

0%

1%

European average: 5.5%European average: 0.53%

**excludes minoritiesg

Adjusted number of shares for EPS 533

Earnings per share (1st Half 2009) €1.11

‐15%

‐5%

‐2%

‐1%

(1) Hybrid and US Pref dividend for the full year 2009

‐25%‐3%latest available data latest available data

(2) Adjusting for discount to TERP

page 16


Capital at record high following internal generation and proactive capital raising

Tier I Ranking: DJStoxx 600 Banks IndexCapital adequacy (Basel II)

Share capital 3 043

Share premium account 3 324

€mn PF* 30.06.09 31.03.09

Upper Tier I 9 128 7 768 7 270

Pro‐forma Capital

11

14NBG

One of the most well–capitalized banks in Europe…Pro‐forma Core Tier I Breakdown %

p

Reserves 3 315

AFS reserve & FX differences (986)

Minorities:

pp

Lower Tier I 1 339 1 789 1 436

Goodwill & Intangibles (2 524) (2 524) (2 426)

Tier I Capital 7 943 7 033 6 280 5

8Median: 8.0%

Trading Joint Venture 716

Other Minorities (FB Leasing, etc.) 78

Treasury shares (11)

Oth 40

Tier II Capital 8 8 70

Total CAD 7 951 7 041 6 350

RWAs 65 072 65 072 64 389

2

Internal Capital GenerationOther 40

Goodwill & intangibles (2 524)

Pro‐forma Core Tier I 6 994Core Tier I ratio 10.8% 8.7% 8.1%

Tier I ratio 12.2% 10.8% 9.8%

Internal Capital Generation

8.1%

+52bpsInternal generation

Core T1 31.3.09

CAD ratio 12.2% 10.8% 9.9%

* pro‐forma for the capital increase and the Tier I buy‐backprogram in July ‘09

+11

+12

‐13

9b

Valuations

Treasury shares

Prefs dividends

page 17

‐9bps

8.7%

ΔRWAs

Core T1 30.6.09


Stress testing capital ratios for currency exposures

Turkish Lira / EUR Romanian RON / EUR Serbian Dinar / EUR

2 16

2.3

2.5

94100

110

4.21

4.2

4.4

4.6

+1%+1%

TRY strengthened 1% since end of Q2 … … RON flat since end of Q2 … RSD also flat since end of Q2

0%+1%

0%+2%

2.22

2.16

1.9

2.1

95

94

70

80

904.23

3 4

3.6

3.8

4.0

4.2+1%Q3.09 so far

Q3.09 so far Q3.09 so far

Group Tier I ratio: Sensitivity to FX rates (pro‐forma impact; bps)

1.7 703.4

Summary Results

Q4.08 Q1.09 Q2.09 Q3.09 Q4.08 Q1.09 Q2.09 Q3.09 Q4.08 Q1.09 Q2.09 Q3.09

0

+10

+20

(bps)

Turkish Lira Romanian RON Serbian Dinar

0

+10

+20

0

+10

+20

― Abating of risk aversion in Q2.09 has positive effect on Equity Tier 1

― Before hedging, further 25% h f ld

‐50

‐40

‐30

‐20

‐10

Tier I im

pact

‐50

‐40

‐30

‐20

‐10

‐50

‐40

‐30

‐20

‐10

unhedged

strengthening of EUR against TRY, would dent T1 by circa 30bps; likewise, 25% against RON, would trim T1 by less than 10bps

unhedged

unhedged

page 18

2.0

2.2

2.4

2.6

2.8

TRY/€ rate

3.8

4.2

4.6

5.0

5.4

5.8

Rom Leu /€ rate

84 93 102

111

120

128

Serbian Dinar /€ rate


Housing and Residential Mortgage marketHousing and Residential Mortgage marketSeptember, 2009



Greek housing and residential mortgage market ‐ Key takeaways

• Greek mortgage market has enjoyed tremendous growth in the recent past driven by:– Positive demographics, renovation of old dwellings and adjusting family dynamics– Significant growth in household disposable income in a low interest rate environment– Declining household size and significant increase of immigrant population

• Despite the strong growth, market has remained quite conservative:Household debt burden remains one of the lowest in Europe– Household debt burden remains one of the lowest in Europe

– Typical LTV’s that Banks lend <70%, amongst the lowest in Europe (Cover pool current LTV is ~60%); shorter than average tenor– Banks finance their mortgage portfolio’s primarily with customer deposits and much less with RMBS or CB– Plain vanilla products; no sub‐prime; no home equity, no endowment, no reverse mortgage, no buy‐to‐let

• Market is experiencing a soft landing in housing prices and much softer than elsewhere in Europe as it did not experience a significant house price boom; this trend is not likely to reverse as estimated house price overvaluation is mild (~10%)

• NBG holds a commanding position in the market, which coupled with its liquidity advantage enables it to achieve superior returns for its investors– Market share in outstanding mortgages is 24%, almost the same as #2 and #3 player combined; in the past 12 months market share in new

production has reached 45% as the competition faces capital and liquidity constraints– New production is coming at almost double spread (~250 bp) and with the application of much stricter underwriting criteria

Delinquencies are significantly below market average; gap is increasing in the past 12 months– Delinquencies are significantly below market average; gap is increasing in the past 12 months– After a spike in 2007, because of intensified competition, early prepayments are edging down to practically nil

• NBG’s has organized its mortgage business around a defensive, conservative and fully centralized operating model– Branches source ~70% of new business; all customers (even if solicited form intermediaries) apply via Branches

page 20

f ; ( f f ) pp y– Underwriting is fully centralized; Branches having no credit authorization limit; on the field technical appraisal for 100% of applications– Collections are fully centralized, start from the 1st day of delinquency in a structured manner


Healthy macroeconomic environment has boosted residential mortgage market

Household size Immigrant population (% total)Mortgage market growth g p p ( )

Mortgage penetration is lower than Europe Declining household size… coupled with immigrants bolstered demand

g g g

2.810 25 50 75 100

2.65

2.292.20 1.5

5.4

Short‐term interest rates (real)

2003 2007 1998 2007

Household Disposable IncomeIndex (1999=100)

Strong growth in disposable income Declining interest rates

11

14

175

200

‐1

2

5

8

100

125

150

175

2003 2008

page 21

‐4

Jan‐98 Jan‐01 Jan‐04 Jan‐07

75

1999 2001 2003 2005 2007


House price slowdown has been and is expected to be mild compared to other markets

House price evolution House price over‐valuation**

Annual growth, 2008‐09*, percent November 2008, percent of actual price level

2009

2008

3229

23

17

13 13

2 2

‐20 ‐10 0 10

page 22

* 1st quarter 2009** Expected house prices in each cuntry were modeled using a macroeconomic housing demand model and compared to actual price level

Source: OECD, IMF and Bank of Greece estimates for Q1 2009


Greek Mortgage market is more traditional compared to other EU markets

Typical Loan‐to‐Value Household debt servicing cost

25

Percent of disposable income, 2007

9085 80 80 75 75

70 65

Percent of loan value, 2007

2518 18

12 12 9 9 7

65

Typical mortgage tenor SummaryTypical mortgage tenor

Years, 2007

30 20‐30

Summary

― Household debt burden at ~9% of disposable income, remains one of the lowest in Europe

― Typical LTV’s that Banks lend <70%, amongst the lowest in Europe (Cover pool current LTV is ~60%); 20 30

20‐25 20‐25 15‐20 15‐20 15‐20 15‐20 ― New mortgage tenor at 15‐20 years; shorter than European average

― Outstanding CB and RMBS at a mere ~17%; Banks finance their mortgage portfolio’s primarily with

t d it

page 23Source: ECB, European Covered Bond council, BBVA (2007)

customer deposits

― Plain vanilla products; no sub‐prime; no home equity, no endowment, no reverse mortgage, no buy‐to‐let


NBG has a commanding position in the local market

NBG share of new mortgage loans NBG application StatsMarket share mortgage loans

Percent of new mortgage originations # of apps; approvals as % of total apps

50%

90%7,500Applications Approved ratio

Percent of total mortgage outstanding, Jun‐2009

30%

40%

75%

2,500

5,000

14 2

24.5

NBG early pre‐paymentsDelinquencies vs. market

20%

Jun‐08 Sep‐08 Dec‐08 Mar‐09 Jun‐09

60%0

Jun‐08 Oct‐08 Feb‐09 Jun‐09

13.1

14.2

NBG early pre paymentsq

Mortgages +90dpd (%)

4.0%

5

6 3‐month moving averages

Percent of total mortgage outstanding9.1

1.0%

2.0%

3.0%

1

2

3

4

5

7.5

0.7

1.0

page 24

0.0%Jan‐08 Apr‐09

0

Mar‐08 Jun‐08 Sep‐08 Dec‐08 Mar‐09

NBG GR (excl. NBG)Source: NBG, respective peer quarterly results


Origination channels

NBG tl h 500 000 t t d i f th 60 000 tNBG currently has ~500,000 mortgage accounts and receives a further 60,000 new mortgage applications per year

• 579 Branches, largest Branch Network in the country

• Account for ~70% of new productionRetail Branches

• ~3,000 intermediaries, real estate agents and mortgage brokers

• Account for ~25% of new productionIntermediaries

• Provide leads to Branches, direct client contact at the Branch to make application

• ~1,300 insurance brokers of Ethniki Insurance, a wholly owned NBG subsidiaryNBG Linked

• Account for ~5% of new production

• Provide leads to Branches, direct client contact at the Branch to make application

NBG Linked Intermediaries

page 25Source: NBG


Servicing: Underwriting and arrears management

ApplicationFinancial Financial Evaluation &

Contract SignatureCollateral EvaluationApplicationAssessment Approval

Contract Signature

Branch Mortgage Credit Division Mortgage Credit Division Branch

Collateral Evaluation

Collateral Eval. Division

• Solicit customer application

• Checks whether borrower meets lending criteria

• Application assigned automatically to an underwriter according to credit approval limits

• Search of adverse credit

• Arranges physical collateral evaluation to be performed by independent lawyer and surveyor

• Collects due diligence reports

• Initial underwriterrecommends approval or rejection and passes to secondary underwriter

• “Four ‐eye principle”:

• Mortgage loan agreement signed at Branch

• Pre‐notation signed in relevant land registry office / courtlending criteria

• Obtains supporting documents

• Transmits electronic application to Mortgage

Search of adverse credit history in internal databases / external credit bureau

• Segregation of duties as application processing at

Collects due diligence reports and records result in Bank collateral system

• Prepares loan contract and legal documents

• Checks that credit policy

Four eye principle : application passed to secondary underwriter

• Secondary underwriter always higher ranked than initial evaluator and

registry office / court

• Property and life insurance issued

• Mortgage is disbursed

Mortgage Credit Division

application processing at different steps managed by different employees

• All applications scored by credit scoring model developed by Fair Isaac,

• Checks that credit policy requirements are fulfilled

initial evaluator and subject to credit approval limits makes final decision

Arrears management (0‐150 days past due)p y ,inline with Basel II requirements; PTIcut‐off set at 40%

Retail Collections Division• Centralized process, recovery collection calls

• Process starts at 31st dpd customers; for high‐risk customers (large tickets and high LTV’s) from 1st day of delinquency

page 26

(large tickets and high LTV s) from 1 day of delinquency

• Delinquency reminder letters sent out automatically for every missed payment


Structured credit recovery timeline

Foreclosure Initiation Termination of Loan Court Order

Filing an Annulment

Auction• Collection Dept prepares

customer file for external law firm

• Customer served Notice of Termination approximately 15 days after the 180th date

• The public auction is executed by the appointed notary public

• Th t i ld t

• Official Termination of Loan

• Bank requests that the Court issues a payment order using the signed loan agreement and the loan account

• The judge issues a court order for payment together with a demand for immediate payment of the full amount of the loan

• The payment order is of delinquency

• The property is sold to the highest bidder who then has 15 days to pay the price to the notary public

transactions statements since the loan was originally disbursed

p yserved by a bailiff to the borrower 15 days after the issuing of the court order

• The debtor is granted 10 working days to contest the procedure

Property is Seized Price Paid

0

Days after 180th date of delinquency

60 – 120 Days

15 Days15

10 Days 15 Days

41 – 60 Days 40 Days

35 – 90 Days

Right to Enforcement

Negotiation PeriodProperty is Seized Price Paid

Lapse of 10 Day Period

• The Bank has the right to seize the property

• Customer offered a limited number of days (usually 10) during which the loan can be paid

• Bank again serves the order for payment

• The customer has 15 working days to contest the validity of the court order by filing an annulment petition

• A Bailiff issues a seizure statement indicating the date and the place of the auction along with the minimum auction price

h d i d

• The notary public prepares a special deed, listing all the creditors, who announced their claims to him/her within 35 – 90 days of the auction, allocating the proceeds of the auction

• Pre‐notation is then converted into a mortgage

completely and thus halt legal proceedings

g p

• After this the payment order can no longer be challenged

• The payment order is served by a bailiff to the borrower

• If the minimum auction price is contested (either by the borrower or lender) with sufficient supportive evidence, the auction is

auction

• After any claims from employment relationships and contracts for legal and educational services arising in the past 2 years have been paid, 1/3 of the remaining proceeds are allocated to public sector claims, d th i i 2/3 i di t ib t d

page 27

postponed until a date not exceeding 6 months from the initial auction date for a new reserve price

and the remaining 2/3 is distributed to other creditors (according to pre‐notation rank – superseded by statutory covered bond pledge)


Covered Bond ProgrammeCovered Bond ProgrammeSeptember, 2009



Programme structure

National Bank ofGreece S A

Covered Bonds Coupons and

Principal Covered Bond Greece S.A.Cover Pool Covered Bonds

Proceeds

pSwap Counterparty Covered Bonds Holders

/ Trustee

• Covered Bonds are issued by NBG as direct and unsubordinated obligations

Asset Monitor

• Covered Bonds are issued by NBG as direct and unsubordinated obligations

• Greek law provides a strong legal framework securing issuance of Covered Bonds on a dynamic cover pool segregated on NBG’s balance sheet

• Assets in the cover pool are recorded on a dedicated register. The registration ensures the correct assets segregation on a dynamic pool

• NBG will enter into swap agreements to hedge interest risk mismatches between the cover pool and the issued Covered Bondsp g g p

• Programme provides that for so long as Covered Bonds remain outstanding, the obligations of NBG are suitably over‐collateralised by requiring

satisfaction of various tests (see description of the tests in slide 33)

• If no Issuer Event or Event of Default has occurred, NBG will pay principal and interest on the Covered Bonds using its own funds

• Following a downgrade of NBG below BBB‐/Baa3 (Fitch/Moody’s), the Issuer is no longer entitled to withdraw the amounts credited on the

Transaction Account

• NBG, acting as Servicer, will be replaced in case of insolvency

page 29


Programme terms

Issuer National Bank of Greece S.A.

Servicer National Bank of Greece S.A.

Size € 10,000,000,000

Listing Luxembourg

Maturity No limitation (subject to legal framework)

Governing Law Greek Covered Bond Legislation / Transaction Documents will be governed by English law

Arrangers Deutsche Bank, NBG Investment Banking, UniCredit Group (HVB)

Asset monitor Ernst & Young

Trustee Citicorp Trustee Company LimitedTrustee Citicorp Trustee Company Limited

Security Fixed and Floating charges over the Cover Pool

page 30


Issuance terms

Rating AAA / Aaa (Fitch / Moody’s)

Maturity Subject to investor demand

Currency €

Size Benchmark

Interest Fixed rate

Joint Lead Managers Deutsche Bank, Unicredit (HVB), NBG Investment Banking

Clearing Euroclear and / or Clearstream, Luxembourg

OCMinimum legal required OC 5.26%; Current OC 168.87% (based on the segregated portfolio as of Aug 2009)

Portfolio Prime Residential Mortgages originated in Greece

Compliant to EU directive Yes, UCITS and CRD

page 31


Investor protection – mechanisms: issuer event and event of default

Issuer event Event of default

• Failure to pay principal or interest when due in respect of the Covered Bonds within a period of seven business days

• Issuer defaults in the performance or observance of any of its obligations under Transaction Docs and such default is:• In the opinion of the Trustee, incapable of remedy;

• Failure to pay principal amounts on the Covered Bonds within seven business day from the due date

• Failure to pay interest amounts on the Covered Bonds within fourteen business day from the due date

• Breach of the Amortisation Testp , p y;• In the opinion of the Trustee, capable of remedy and

remains unremedied for 30 days• Any indebtedness in respect of moneys borrowed or raised in

an amount of at least €10 mn of the Issuer becomes due and payable prior to the stated maturity

Breach of the Amortisation Test

payable prior to the stated maturity• A breach of a Statutory Test and such breach is not remedied

within two business days• Issuer Insolvency Event

C CConsequences• No further series of Covered Bond can be issued• Payments on the Covered Bonds will be made from the

Covered Bonds Available Funds in accordance with the Pre Event of Default Priority of Payments

Consequences• Acceleration of the Covered Bonds: each series become

immediately due and payable• Portfolio disposal in order to repay the Covered Bonds• Proceeds from the liquidation of the cover pool disbursed in y y

• Portfolio disposal in order to repay the Covered Bonds (if needed to meet payment of interest and principal according to the original maturities)

• Redirection of all debtor’s payments on the Transaction Accounts

q paccordance with the Post Event of Default Priority of Payments

page 32

Accounts• NBG no longer entitled to withdraw the amounts credited

on the Transaction Account (other than for making payments due under the relevant Priority of Payments)


Statutory Tests*: to guarantee adequate ongoing asset coverage

• The lower of: a) 95 per cent. (legal overcollateralization), and b) an asset percentage determined from time totime by the Rating Agencies of the Nominal Value of the Cover Pool is higher than the Principal AmountOutstanding of all Series of Covered Bonds including accrued interest

Nominal Value T t Outstanding of all Series of Covered Bonds including accrued interest.

• By law in order to assess the compliance with this test, all of the assets** comprising the Cover Pool shall beevaluated at their nominal value plus accrued interest

• To the extent that the Transaction Account is held by NBG, for the purpose of the Nominal Value Test no creditis given to the amount standing on such account

Test

• The Net Present Value of liabilities under the Covered Bonds is less than or equal to the Net Present Value ofthe Cover Pool including the Interest Rate Swap and Covered Bond Swaps. This test must also be satisfied onthe assumption of a parallel shift of the yield curve by 200 basis points

• In addition to the previous point the Net Present Value of the Interest Rate Swap and the Covered Bond Swaps

NPV Test

are in aggregate less than or equal to 15 per cent of the nominal value of the Covered Bonds• To the extent that the Transaction Account is held by NBG, for the purpose of the Net Present Value Test no

credit is given to the amount standing on such account

• The amount of interest due on the Covered Bonds does not exceed during the following 12 months the amountThe amount of interest due on the Covered Bonds does not exceed during the following 12 months the amountof interest expected to be received in respect of the loans comprised in the portfolio and the substitutionassets

• The Interest Rate Swap and the Covered Bond Swaps in respect of each series must be included for assessingcompliance with this test

Interest Cover Test

• Following an Issuer Event• The Nominal Value of the Covered Pool will be in an amount at least equal to the aggregate Principal Amount

Outstanding of the Covered Bonds• A breach of the Amortisation Test will cause an Event of Default

Amortisation Test

page 33

* The failure to cure a breach of the Statutory Test within two Athens Business Days will cause an Issuer Event.

** To guarantee additional protection in all the Statutory Tests the nominal value of each Loan in the Covered Pool is determined as the lower of: (i) the Outstanding Principal Balance, (ii) zero if the Loan is in arrear and (iii) the updated Loan valuation.


Individual eligibility criteria

1 Asset is a loan, denominated in €

Borrower agreement governed by Greek law and only provide for Greek law jurisdiction2

Nominal value remains a debt, which has not been paid or discharged3

/Secured by a valid and enforceable first ranking mortgage and/or mortgage pre‐notation over property located in Greece that may be used for residential purposes; if mortgage is of lower ranking, loans that rank higher have been originated by Issuer and are included in the Cover Pool

4

L di it i t ti f l ti f NBG’ dit li d t l di d llLending criteria to granting of loan satisfy NBG’s credit policy and customary lending procedures as well as

the European Code of Conduct on Mortgage Loans5

Purpose of loan is either to buy, construct or renovate a property or refinance a loan originally granted by 6

another bank for the above purposes6

It is either a fixed or floating rate loan or a combination of both7

It is not an interest‐only loan8

It is not a subsidised or state guarantee loan9

page 34

It is not an employee loan10


Portfolio summary

Metric Current Initial

Reporting Date 31‐08‐2009 28‐11‐2008

Portfolio Cut off Date 31‐08‐2009 31‐10‐2008

Original Principal Balance € million 6,487,231 6,487,231

P i i l B l € million 5 357 444 5 951 630Principal Balance € million 5,357,444 5,951,630

Number of Borrowers Thousand 66.3 70.3

Number of Loan parts Thousand 88.0 94.1

Number of Properties Thousand 68.1 72.3Number of Properties 68.1 72.3

Average Principal Balance (borrower) € thousand 80.8 82.3

Average Principal Balance (parts) € thousand 60.9 63.2

Coupon: Weighted Average Percent 4.4 4.8

Minimum Percent 1.3 3.1

Maximum Percent 7.3 8.1

Weighted Average Loan to Foreclosure Value Percent 66.9 66.6

PWeighted Average Loan to Indexed Foreclosure Value Percent 56.7 58.4

Seasoning: Weighted Average Years 2.9 2.1

Original Maturity: Weighted Average Years 24.9 24.9

Remaining Tenor: Weighted Average Years 22 1 22 9

page 35

Remaining Tenor: Weighted Average Years 22.1 22.9

Remaining Interest Period: Weighted Average Years 1.8 2.3


Priority of payments

Pre‐event of default Post‐event of default

• Pay any amount due and payable to the Trustee• Pay pari passu and pro rata any fees, costs, expenses to

third parties and taxes• Pay all amounts due and payable to any Secured

• Pay any Indemnity to which the Trustee is entitledpursuant to the Trust Deed and any costs and expensesincurred by or on behalf of the Trustee

• Pay pari passu and pro rata:Creditors, other than the Covered Bondholders andthe Hedging Counterparties

• Pay pari passu and pro rata:– All amounts of interest due and payable on any

– All amounts of interest and principal due andpayable on any Covered Bonds;

– Any additional fees, costs, expenses to thirdparties and taxes

Covered Bonds; and– Any amounts due and payable under any

Hedging Agreement other than SubordinatedTermination Payments to any Hedging

– All amounts due and payable to any SecuredCreditors, other than the Covered Bondholders

– Any amounts due and payable under anyHedging Agreement (other than Subordinated

Counterparties• Pay all amounts of principal due and payable on any

Covered Bonds• For so long as any Covered Bonds remain outstanding,

Termination Payments to any HedgingCounterparties)

• Pay pari passu and pro rata any SubordinatedTermination Payments

provision any remaining Covered Bonds AvailableFunds in the Transaction Account

• Pay pari passu and pro rata any SubordinatedTermination Payments

• Pay any excess amounts to the Issuer

page 36

• Pay any excess amounts to the Issuer


Pool Characteristics

Seasoning Loan to Indexed Foreclosure Value

Average: 2.925.7 28.0

21 530 4250

Average: 56.7

Percent of total number of properties, Aug‐2009Percent of total mortgage outstanding, Aug‐2009

3.5

21.5

11.48.0

2.0

0

10

20 2623

81

0

10

20

30

40

0

< 1.0 1.0 ‐ 2.0 2.0 ‐ 3.0 3.0 ‐ 4.0 4.0 ‐ 5.0 5.0 ‐ 6.0 > 6.0

0

< 40% 40% ‐ 60% 60% ‐ 80% 80% ‐ 90% 90% ‐ 100%years

Outstanding Notional Amount Delinquencies

80100

Percent of total mortgage outstanding, Aug‐2009Percent of total number of properties, Aug‐2009

39 38

19

3 1 10

20

40

60 80

15 4225

50

75

100

page 37

0

< 50 50 ‐ 100 100 ‐ 200 200 ‐ 300 300 ‐ 500 > 5000

0 <1 1‐2 2‐3# of monthly payments in arrearsThousand €


CB law vs. other European Covered Bond frameworks

UK

Dedicated Legal

gFramework

Segregation on Issuer Insolvency

Yes Yes No, claim on whole mortgage

portfolio of the issuer

Yes Yes Yes Yes

the issuer

Bankruptcy‐remoteness of Issuer

No No No Yes No Yes No

Preferential Claim for CB Holders

CB Holders

Mandatory OC 5.26% nominal 2% on NPV basis CH 25% / CT 43%

(both nominal)

No, only nominal coverage required

6 – 10% nominal Mortgage ACS: 3% Commercial ACS: 10% (both nominal.), PS

ACS

5.26% nominal

ACS: 3% NPV

Max. LTV Ratio (Residential)

80% 60% 80% 80% 60 – 75% 75% 80%

Max Substitute Collateral 20% 20% N/A 20% (30% in 10% 15% SubstituteMax. Substitute Collateral 20% 20% N/A 20% (30% in exceptional

cases)

10% 15% Substitutecollateral for

overcollateralisationonly

UCITS 22 (4) / CRD

page 38


AppendixSeptember, 2009

Appendix


NBG Group: Summary Financials

Profit & Loss Account

€ mn H1.09 H1.08 yoy% Q2.09 qoq% € mn H1 09 H1 08 yoy% Q1 09 qoq%

Summary Balance Sheet

€ mn y y% Q q q%

Net interest income 1 913 1 729 +11% 968 +2%

Net fees 341 376 ‐9% 175 +5%

Insurance 55 95 ‐43% 28 +3%

Trading & other income 315 93 >100% 225>100%

€ mn H1.09 H1.08 yoy% Q1.09 qoq%

Cash & Reserves 5 288 3 970 +33% 3 788 +40%

Interbank & Securities Repos 2 333 2 765 ‐16% 2 734 ‐15%

Investment & Trading Securities 18 314 18 009 +2% 15 833 +16%

Trading & other income 315 93 >100% 225>100%

Income 2 623 2 294 +14% 1 396 +14%

Personnel expenses (700) (658) +6% (351) +1%

G&As (351) (344) +2% (179) +5%

Depreciation (95) (76) +25% (51) +13%

LaR Securities 7 082 ‐ ‐ 8 668 ‐18%

Loans (gross) 68 474 61 383 +12% 67 551 +1%

Provisions (1 982) (1 524) +30% (1 754) +13%

Goodwill & Intangibles 2 455 2 670 ‐8% 2 386 +3%Depreciation (95) (76) +25% (51) +13%

Opex (1 147) (1 078) +6% (581) +3%

Pre‐provision earnings 1 477 1 216 +21% 814 +23%

Provisions (494) (180) >100% (260) +11%

I t (224) (169) 33% (136) 53%

Tangible assets 1 999 1 941 +3% 2 117 ‐6%

Other assets 6 517 5 327 +22% 6 025 +8%

Total Assets 110 481 94 541 +17% 107 349 +3%

Income tax (224) (169) +33% (136) +53%

Minority & Non‐cash charges (37) (32) +14% (15) ‐30%

Attrib. PAT (before one‐offs) 721 834 ‐14% 404 +27%

Exceptionals:

Interbank & Securities Repos 20 166 10 668 +89% 18 927 +7%

Due to customers 70 624 63 915 +10% 68 994 +2%

Debt securities 2 930 3 734 ‐22% 3 844 ‐24%

VRS in subsidiaries (13) ‐ ‐ (13) ‐

Tax settlement FB ‐ (21) ‐ ‐

Attributable PAT 708 814 ‐13% 391 +23%

Other liabilities 7 652 7 499 +2% 7 530 +2%

Hybrids & Minorities 1 883 2 025 ‐7% 1 901 ‐1%

Equity 7 226 6 701 +8% 6 154 +18%

Total liabilities & equity 110 481 94 541 +17% 107 349 +3%

page 40

Total liabilities & equity 110 481 94 541 +17% 107 349 +3%


P&L: Breakdown by Segment

€mn H1.09 H1.08 yoy% Q2.09 qoq% H1.09 H1.08 yoy% Q2.09 qoq% H1.09 H1.08 yoy% Q2.09 qoq%

Greece SEE & Other International Finansbank

NII 1 222 1 079 +13% 617 +2% 235 217 +8% 118 +1% 456 434 +5% 234 +5%

Commissions 169 185 ‐9% 86 +5% 45 52 ‐14% 23 +5% 128 140 ‐8% 66 +5%

Insurance income 49 92 ‐46% 25 +0% ‐ ‐ ‐ 5 4 +43% 3 +28%

Trading & other income 239 61 >100% 187 >100% 11 17 ‐35% 2 ‐74% 64 15 >100% 35 +21%

Income 1 679 1 416 +19% 915 +20% 290 286 +1% 143 ‐3% 654 592 +10% 338 +7%

Personnel expenses (515) (466) +11% (257) ‐0% (68) (66) +3% (32) ‐9% (117) (124) ‐6% (61) +9%

G&As (172) (159) +8% (90) +11% (60) (60) ‐1% (30) ‐3% (119) (125) ‐4% (59) ‐1%

Depreciation (59) (44) +35% (30) +4% (16) (13) +18% (8) +5% (20) (19) +7% (12) +54%

Operating Expenses (746) (668) +12% (378) +3% (144) (140) +3% (70) ‐5% (257) (268) ‐4% (133) +7%

Pre‐provision earnings 933 748 +25% 537 +35% 146 146 +0% 73 ‐0% 398 325 +22% 205 +6%

Provisions (301) (127) >100% (158) +11% (77) (25) >100% (45) +41% (116) (29) >100% (56) ‐6%

Taxes (161) (104) +55% (103) +78% (5) (13) ‐58% (2) ‐60% (58) (52) +12% (31) +15%

Minorities & non‐cash charges (32) (25) +25% (13) ‐32% (1) (2) ‐71% (0) +17% (5) (5) ‐17% (2) ‐20%

Attributable PAT (before one‐offs) 439 492 ‐11% 263 +49% 64 107 ‐40% 26 ‐29% 219 238 ‐8% 115 +11%

Exceptionals:

VRS in subsidiaries (13) ‐ ‐ (13) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Tax settlement FB ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (21) ‐ ‐ ‐

Attributable PAT 426 492 ‐13% 249 +41% 64 107 ‐40% 26 ‐29% 219 218 +0% 115 +11%

Investment & Trading Securities 15 946 15 535 +3% 15 946 +20% 397 370 +7% 397 +10% 1 972 2 104 ‐6% 1 972 ‐12%

LaR Securities 7 082 ‐ ‐ 7 082 ‐18% ‐ ‐ ‐ ‐ ‐ ‐ ‐

Net Loans 47 440 41 266 +15% 47 440 +2% 8 839 8 048 +10% 8 839 ‐1% 10 214 10 544 ‐3% 10 214 ‐0%

Deposits 58 511 51 686 +13% 58 511 +4% 5 147 4 923 +5% 5 147 +3% 6 966 7 307 ‐5% 6 966 ‐9%

page 41


Finansbank: Summary Financials

TRY mn H1 09 H1 08 yoy% Q2 09 qoq% TRY mn H1 09 H1 08 yoy% Q1 09 qoq%

Profit & Loss Account Summary Balance Sheet

TRY mn H1.09 H1.08 yoy% Q2.09 qoq%

Net interest income 980 815 +20% 499 +4%

Net fees 275 262 +5% 140 +4%

Trading & other income 149 36 >100% 81 +20%

TRY mn H1.09 H1.08 yoy% Q1.09 qoq%

Cash & reserves 1 471 1 450 +1% 2 395 ‐39%

Interbank placements 1 112 931 +19% 1 070 +4%

Investment & Trading Securities 4 262 4 065 +5% 4 957 ‐14%

Income 1 405 1 113 +26% 720 +5%

Operating expenses (551) (503) +10% (283) +6%

Pre‐provision earnings 853 610 +40% 436 +5%

Provisions (250) (55) >100% (120) 7%

Loans (net) 22 093 20 366 +8% 22 741 ‐3%

Tangible assets 393 360 +9% 386 +2%

Goodwill & intangibles 64 46 +40% 60 +6%

Other assets 1 393 1 019 37% 1 555 ‐10%Provisions (250) (55) >100% (120) ‐7%

Income tax (125) (98) +28% (67) +14%

Minority (9) (10) ‐9% (4) ‐29%

Attrib. PAT (before one‐offs) 469 447 +5% 246 +10%

Total Assets 30 788 28 237 +9% 33 164 ‐7%

Interbank liabilities 2 910 3 984 ‐27% 3 347 ‐13%

Due to customers 15 075 14 147 +7% 16 992 ‐11%

Tax settlement ‐ (39) ‐100% ‐

Attrib. PAT 469 408 +15% 246 +10%

Borrowed funds 5 266 4 480 +18% 5 948 ‐11%

Other liabilities 2 808 2 430 +16% 2 411 +16%

Minorities 140 122 +14% 135 +3%

E i 4 590 3 073 49% 4 330 6%Equity 4 590 3 073 +49% 4 330 +6%

Total liabilities & equity 30 788 28 237 +9% 33 164 ‐7%

page 42


SEE and Other International: P&L and key Balance Sheet items

SEE & other International SEE Cyprus Other

€ mn H1.09 H1.08 yoy% Q2.09 qoq% H1.09 H1.08 yoy% Q2.09 qoq% H1.09 H1.08 yoy% Q2.09 qoq%

NII 235 217 +8% 118 +1% 212 195 +9% 106 +1% 19 18 +7% 10 +2%

Commissions 45 52 ‐14% 23 +5% 40 48 ‐16% 21 +5% 3 2 +7% 1 +24%

Trading & other income 11 17 ‐35% 2 ‐74% 8 17 ‐51% 2 ‐66% 1 1 +27% 1 +9%

Income 290 286 +1% 143 ‐3% 260 260 +0% 129 ‐1% 23 22 +8% 12 +4%

H1.09 H1.08 yoy% Q2.09 qoq%

3 4 ‐9% 2 ‐8%

2 1 +9% 1 +4%

1 (1) n/a (0) n/a

6 5 +40% 2 ‐54%

Personnel expenses (68) (66) +3% (32) ‐9% (56) (56) ‐1% (26) ‐12% (9) (8) +14% (5) ‐3%

G&As (60) (60) ‐1% (30) ‐3% (56) (57) ‐2% (27) ‐3% (2) (2) ‐9% (1) ‐6%

Depreciation (16) (13) +18% (8) +5% (15) (13) +16% (8) +4% (0) (0) +10% (0) +2%

Operating Expenses (144) (140) +3% (70) ‐5% (126) (126) +0% (61) ‐6% (12) (11) +9% (6) ‐4%

(3) (2) +48% (1) +21%

(2) (1) +59% (1) +6%

(1) (0) >100% (0) +17%

(5) (3) +57% (3) +14%

Pre‐provision earnings 146 146 +0% 73 +0% 134 134 +0% 68 +3% 11 10 +7% 6 +14%

Provisions (77) (25) >100% (45) +41% (73) (18) >100% (44) +54% (4) (7) ‐48% (0) ‐90%

Taxes (5) (13) ‐58% (2) ‐60% (5) (12) ‐62% (1) ‐74% (1) (0) >100% (1) >100%

Minorities (1) (2) ‐71% (0) +16% (1) (2) ‐71% (0) +16% ‐ ‐ ‐ ‐ ‐

Attributable PAT 64 107 ‐40% 26 ‐29% 56 103 ‐46% 22 ‐33% 7 3 >100% 5 >100%

|1 1 ‐12% (1) n/a

0 0 ‐ (0) n/a

(0) (0) ‐ 0 ‐

‐ ‐ ‐ ‐ ‐

1 1 +17% (1) n/a

Net Loans 8 838 8 048 +10% 8 838 ‐1% 7 775 7 078 +10% 7 775 ‐1% 933 870 +7% 933 +2% 131 100 +31% 131 +20%

2 9 3 % 2 %Total Assets 10 869 10 304 +5% 10 869 +2% 9 217 8 858 +4% 9 217 +2% 1 411 1 268 +11% 1 411 +2%

Deposits 5 147 4 923 +5% 5 147 +3% 4 336 4 106 +6% 4 336 +2% 687 715 ‐4% 687 +4%

241 179 +35% 241 ‐1%

123 103 +20% 123 +0%

page 43


NBG credit ratings

Outlook Negative

LT Foreign Issuer Credit BBB+

Outlook NegativeForeign LT Bank Deposits Aa3

Outlook NegativeLT Issuer Default Rating A– LT Foreign Issuer Credit BBB

LT Local Issuer Credit BBB+

ST Foreign Issuer Credit A – 2

Local LT Bank Deposits Aa3

Preferred Stock A2

Bank Financial Strength C+

Foreign Currency ST Debt P – 1

Senior Unsecured Debt A–

Subordinated Debt BBB+

ST Issuer Default Rating F2

Individual Rating B / CST Local Issuer Credit A – 2

Foreign Currency ST Debt P – 1Local Currency ST Debt P – 1

Individual Rating B / CSupport Rating 2

“…NBG's leading position in Greece both in retail deposits and most loan classes, its

“…With assets totaling €107.3 billion in March 2009, NBG is the largest financial institution

“…NBG enjoys a strong franchise and brand name in Greece. It serves a large, loyal, and

diversified revenue base, good liquidity and adequate capitalisation. […] Stress tests performed by Fitch on NBG's foreign assets, notably in Turkey,Romania and Bulgaria, indicate that NBG is relatively resilient to a sharp downturn in thosemarkets. Anticipated

and the leading deposit‐taking bank in Greece.[…] The bank applies good risk management practices that are supported by its significantly improved information systems and risk measurement tools commensurate with its risk profile. […] NBG has a good liquidity

underpenetrated customer base, which offers long‐term attractive growth opportunities and gives NBG an enormous competitive advantage in funding. NBG has experienced a significant transformation in the past few years, which enhanced its ability to generate revenues in itssharp downturn in thosemarkets. Anticipated

increases in credit costs should be absorbed by NBG's adequate earnings capacity without affecting capitalisation significantly”

risk profile. […] NBG has a good liquidity position and a solid funding base, which distinguish it from its peers. The bank has traditionally been the leading deposit‐taking institution in Greece, controlling around a third of the banking system’s savings deposits”

enhanced its ability to generate revenues in its domestic market. We expect this makeover to enable NBG to absorb higher credit costs and continue to report above‐peers, risk‐adjusted profitability despite pressures from a more adverse environment.”

page 44


NBG shareholder structure

Shareholder structure Summary

Percent of common shares

~49% f h it l d b

1265 ―~49% of share capital owned by

foreign institutional investors

―No physical or legal person owns h f h lSt t t ll d G k

Greek private entities

All other

28

more than 5% of share capital

―Greek state indirectly (through state related entities and state Greek private and

State‐controlled Greek pension funds

pension funds) controls ~12% of the share capital and voting rights

Greek private and institutional investors

49

Foreign institutional investors

page 45* Treasury shares


Contact detailsContact details

Anthimos ThomopoulosCFO / COO

Petros ChristodoulouGeneral Manager, Group Treasury & Capital Markets

Paul MylonasChief Economist – Chief of Strategy

+30210 3343 921

[email protected]

+30210 3328 801

[email protected]

+30210 3341 521

[email protected]

Vasilis KosmasSenior Officer, Structured Finance

+30210 3341 689+30210 3341 689

[email protected]