q1.2016 financial results - piraeus financial holdings/media/com/2016/... · 1.1 q1.2016 at a...
TRANSCRIPT
25 May 2016
Q1.2016 Financial Results
Disclaimer
By reading or otherwise accessing the presentation that follows, you agree to be bound by the following limitations. Any failure to comply with these limitations may constitute a violation of applicable law.
The accompanying presentation has been prepared by Piraeus Bank S.A. and its subsidiaries and affiliates (the “Bank” or “We”) solely for informational purposes. For the purposes of this disclaimer, the presentation thatfollows 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 the presentation is made, or otherwiseviewing or accessing the presentation, whether live or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to themisuse, disclosure or improper circulation of the presentation or any information contained herein.
This presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your objectives or legal, accounting, regulatory, taxation or financial situation orparticular needs. You are solely responsible 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 seekingindependent professional advice in relation to the Bank. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents orassociates 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 the informationcontained in this presentation. The Bank, its financial and other advisors, and their respective directors, officers, employees, agents, and representatives expressly disclaim any and all liability which may arise from thispresentation and any errors contained herein and/or omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith. The Bank, its financial and other advisors, and theirrespective directors, officers, employees, agents, and representatives accept no liability for any loss howsoever arising, directly or indirectly, from any use of the information in this presentation or in connectiontherewith. Certain information contained in this presentation is based on estimates or expectations of the Bank, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Thispresentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking, or is under any obligation, to update any of the information contained in this presentation, includingforward-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 person. By acceptingand 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 own independent judgmentwith 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 measures should beconsidered 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 “targets,” “believes,” “expects,”“aims,” “intends,” “may,” “anticipates,” “would,” “could” or similar expressions or the negative thereof, constitute forward-looking statements, notwithstanding that such statements are not specifically 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 relating to the Bank’s strategies, plans,objectives, initiatives and targets, its businesses, outlook, political, economic or other conditions in Greece or elsewhere, the Bank’s financial condition, results of operations, liquidity, capital resources and capitalexpenditures and development of markets and anticipated cost savings and synergies, as well as the intention and beliefs of the Bank and/or its management or directors concerning the foregoing. Forward-lookingstatements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and outside of the control of the Bank. Therefore, actual outcomes and resultsmay differ materially from what is expressed in such forward-looking statements. We have based these assumptions on information currently available to us, and if any one or more of these assumptions turn out to beincorrect, actual market results may differ significantly. While we do not know what impact any such differences may have on our business, if there are such differences, our future results of operations and financialcondition, 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-looking statement to reflect events or circumstances after the date on which such statement is made, orto reflect the occurrence of unanticipated events.
2
01 RESULTS HIGHLIGHTS
02 Q1.2016 FINANCIALS
03 ASSET QUALITY
04 LIQUIDITY
05 APPENDICES
Table of Contents
3
Results Highlights01 1.1 Q1.2016 at a Glance 1.6 NPL, ΝPE Movement
1.2 Operating Performance 1.7 Developments post Q1.2016
1.3 Capital Position 1.8 2016 Outlook
1.4 Liquidity Position 1.9 Greek Macro Update
1.5 Asset Quality
4
Group, € mn Mar.16 Dec.15
Total assets 85,682 87,528
Gross loans 66,291 68,071
Customer deposits 37,911 38,952
Eurosystem funding 30,417 32,686
Equity 9,947 10,021
TBV 7,780 7,853
Branches (#) 981 989
Employees (#) 19,259 19,279
Loan-to-deposit ratio 129% 130%
>90dpd ratio 40% 40%
>90dpd coverage ratio 66% 65%
CET-1 ratio (phased-in) 17.6% 17.8%
CET-1 ratio (fully loaded) 16.7% 16.7%
01 Q1.2016 at a Glance1.1
17.6% CET-1, 16.7% fully loaded CET-1
66% NPL coverage, 26% provisions over loans
133% NPL coverage by provisions and collateral
€266mn PPI, +2% yoy, marginal PAT loss of €37mn
281bps NIM, up 13bps qoq
-€245mn NPL formation (-37bps over loans)
-€1.2bn NPL stock in the last 6 months
5
bps on gross loans FY.2014 FY.2015 Q1.16
PPI 136 135 160
CoR 513 512 175
Δ -377 -377 -15
Group, € mn Q1.16 Q4.15 qoq Q1.15 yoy
NII 478 463 3% 487 -2%
NFI 74 79 -6% 78 -6%
Other 24 66 -63% 8 >100%
Revenues 576 608 -5% 573 1%
OpEx (310) (330) -6% (312) -1%
Core PPI 241 213 14% 253 -4%
PPI 266 279 -5% 261 2%
ΝΙΙ Up 3% qoq, OpEx Down 6% qoq
970 920
266
2014 2015 Q1.16
Jaws Closing, Paving the Way for Profitability in 2016
Operating Performance01
Note: recurring financial P&L dataratios over assets excl. EFSF|ESM bonds
€ mn
1.2
281bps
43bps
54%
282bps NIM
43bps NFI over assets
52% cost to incomeGR
OU
P Q
1
GR
EEC
E Q
1
6
CoR
PPI
-3,670-3,487
-289
-44 -30 -150
9,450
Dec.15CET-1
Q1.16Results
Reserves Phasing(DTAs,
minorities)
Mar.16CET-1
(€ bn │ %) Phased-in1 Fully Loaded1
CET-1 Capital 9.2 8.8
Total Regulatory Capital 9.2 8.8
RWAs 52.5 52.5
CET-1 Ratio 17.6% 16.7%
Total Capital Ratio 17.6% 16.7%
1 pro-forma for Cypriot operations and ATE Insurance divestment
01CET-1 Ratios (March 2016) CET-1 Capital & RWAs Evolution in Q1.16 (€ mn)
53,30254,036
-734 -785
52,517
Dec.15RWA
Net LoansMovement &
Other
Mar.16RWA
Discontinuedoperations
Mar.16RWA
pro-forma
Capital Position1.3
9,226
7
Solid capital adequacy
fully loaded CET-1 ratio up qoq at 16.7% from 16.6% phased-in ratio at 17.6% from 17.8% due to B3 phasing rules leverage ratio at 11%
35.832.7
-0.6 -1.7 0.0
30.4
14.1
Dec.14 Sep.15 Dec.15 Jan.16 Feb.16 Mar.16 Mar.16
Eurosystem Funding (€ bn)
34.5 36.1
-0.5 -0.3 -0.1
35.1
49.5
+0.2
Dec.14 Sep.15 Dec.15 Jan.16 Feb.16 Mar.16 Mar.16 Apr.16
01Domestic Deposits (€ bn)
Liquidity Position1.4
8
Adjusted for state outflows, Piraeus was down by
€0.6bn in Q1 vs. -€1.9bn for the market
Mar.16 Eurosystem down by €7bn from peak of
Jun.2015; mid-May qtd -€2 bn at €29bn€29 bn.
Q1.16 outflows mainly from state-related & seasonal
agri-banking accounts, as well as from business accounts1
2
3
4
Eurosystem funding stood at €30.4bn at the end
of Mar.16; circa half through ELA facility (€16 bn)
5Interbank repos at €3.2bn as at Mar.16 at
15bps cost, from €1.7 bn and 20bps in Dec.1529 bn.
6Pillar 2 government guarantees use at €1.75bn as at Mar.16 down from €10.4bn in Dec.15bn.
Asset Quality01 1.5
Q1.16 Greek NPL formation at -€232mn or -37bps
NPL coverage increased to 66%
NPL coverage stood at 133% taking into account collateral
Q1.16 Group NPL formation at -€245mn or -37bps
Q1 Domestic NPL Formation (new flows over loans, %)
3.17%
0.52%
0.14%
-0.37%
Q4
.12
Q1
.13
Q2
.13
Q3
.13
Q4
.13
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
66%72%
65%71%
57%62%
51% 53%
Total Business
Mar.16
Dec.15
Dec.14
Dec.13
NPL Coverage (%)
9
-€232mn vs. +€87mn in Q4.15
business NPL comprise c.70%
of total NPL stock
1
2
3
5
ΝPL stock down by €0.5bn qoq, post write-offs
6
01NPL Movement (€ bn)
NPL, ΝPE Movement1.6
10
NPE Movement (€ bn)
NPL total stock declined for a 2nd consecutive quarter
reaching €26.4bn, marking a quarterly drop of €0.5 bn
NPEs flattish qoq with the negative NPL formation & write-
offs positively supporting, while impaired loans increased,
on the back of collective impairment re-allocation
27.526.9
26.4
Sep.15 Dec.15 Mar.16
37.836.9 36.9
Sep.15 Dec.15 Mar.16
This is the combined result of declining/negative NPL
formation and loan write-offs, actively contributing to
the target of significant overall NPL reduction in 2016
Total NPL reduction of €1.2bn for the past six months
Note: like-for-like data excluding Cypriot operations
11
01 Developments post Q1.20161.7
Participation in the ECB QE programme with EFSF bond holdings. Trading gains.
Interbank repos above €4bn in late May. Sizeable rate improvement.
Zero State guarantees post April. Significant cost benefit of c.€100mn vs. 2015
TLTRO II announcement. Ability to participate with c.€10bn, potential negative funding cost
ECB waiver for Greek assets to deliver >€1bn ELA reduction and sentiment improvement
Stated goal of negative NPL formation on track. Supportive new legislation in place
Target of returning to profitability in 2016 on track
VES result of ~1,000 exits, to generate c.€45mn payroll benefit fully phased per annum
Further branch rationalization underway, targeting 650 Greek units in the following months
12
01 2016 Outlook1.8
Resilient economy with real GDP at -0.5% GDP on the back of new fiscal measures
Positive bottom line, with strong CET-1 ratio
Deposit gradual inflow projected for H2, intensified efforts to re-attract funds
Decreased funding cost across the board (ELA, interbank repos, deposits)
Ongoing time deposit cost decrease: 2015 165bps, Q1.16 105bps, front book 84bps
Negative NPL formation of c.€1bn for the full year
Further operating efficiency measures in place, bringing OpEx at lower level
1
2
3
4
5
6
7
In Q1.2016, economic activity contracted by -0.4% qoq, closeto our estimate of -0.3% qoq. For 2016 a marginalcontraction is expected, mainly due to negative carry-overeffect and new austerity measures
Given that a significant portion of the fiscal consolidationmeasures will come into effect in a retroactive manner fromthe beginning of 2016, their impact in Η2.2016 economicactivity will be particularly adverse. In order tocounterbalance this contractionary impact, implementationof agreed privatizations, investment spending and arrearsclearance are of paramount importance
Improved fiscal performance: in 2015, the ESA 2010 GeneralGovernment Primary Surplus (excl. financial institutionssupport) amounted to 0.6% of GDP (2014:0.3%). At the sametime, based on the MoU definition, the primary balanceturned to a surplus of 0.7% of GDP, compared to a deficittarget of -0.25% of GDP
Real estate prices in Greece at -5% yoy in Q1, whereas qoqpace decelerated significantly at -0.2%
2015 Review & 2016 Outlook Real GDP Decline by -0.4% qoq in Q1.2016
-1.8
0.0
0.2
-0.3
0.6
-0.3
1.4
-0.8
0.10.3
-1.2
0.1
-0.4
-5.1
-3.5
-1.8-2.0
0.4 0.2
1.30.9
0.3
0.9
-1.7
-0.8
-1.3
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
qoq% change yoy% change
13
01 Greek Macro Update1.9
Outlook for 2016: real GDP estimated at -0.5% post 1st review conclusion
investments through European structural funds privatizations under way good tourism season
On May 24 2016, the Eurogroup agreed on the conclusion ofthe 1st review and the disbursement of the 2nd tranche(€10.3bn) in several disbursements. A 1st disbursement willtake place in June (€7.5bn). An agreement on the package ofdebt measures was also reached
Q1.2016 Financials02 2.1 Assets & Liabilities Overview
2.2 P&L Highlights
2.3 P&L of Domestic Operations
2.4 Domestic Customer Portfolio Yields
2.5 Operating Expenses
2.6 Alternative Channels Use
14
4.0
10.0
14.2
24.8
1.8
16.0
16.7
10.5
2.5
49.6
1.0
17.0
3.33.6
10.6
2.5
48.9
17.0
3.2
3.5Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
Other
85.7
4.0
9.9
14.5
23.5
3.4
14.4
16.1
02Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
85.7
FundingMix
2.1
Mar.16
Total
Cash
Securities
EFSF|ESM Bonds
Net Loans
PPE
Other
87.5
Seasonal Loan
Dec.15
15
Assets & Liabilities Overview
Mar.16
Dec.15
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
87.5
€ mn Q1.16 Q4.15 qoq Q1.15 yoy
Net interest income 478 463 3% 487 -2%
Net fee income 74 79 -6% 78 -6%
Other 29 63 -54% 4 >100%
Net revenues 581 605 -4% 569 2%
Recurring revenues 576 608 -5% 573 1%
Staff costs (160) (278) -42% (167) -4%
Admin. & other (158) (215) -27% (161) -2%
OpEx (318) (493) -35% (328) -3%
Recurring OpEx (310) (330) -6% (312) -1%
Recurring PPI 266 279 -5% 261 2%
Loan impairment (289) (1,384) -79% (271) 7%
Other impairment (12) (258) -95% (10) 22%
Pre tax result (39) (1,530) - (52) -
Net result attr. to SHs (cont. ops) (37) (1,238) - (63) -
Net result attr. to SHs (dicont. ops) (7) (31) - (14) -
16
P&L Highlights02 2.2
Q1 2016 Group P&L at a Glance
Q1.16 net interest income stronger, mainly on the back of declining utilization of ELA funding (-€14mn qoq) and lower government guarantees (-€13mn qoq), as well as time deposits costs
Q1.16 net fee income affected by domestic environment conditions (domestic GDP -1.3% yoy), yet exhibits relative resilience in segments such as bancassurance (+22% qoq at €9mn, e-payments and cards at €18mn, +18% yoy)
Q1.16 recurring net revenues resilient yoy at €576mn
Q1.16 recurring OpEx down 1% yoy as cost cutting initiatives bring results. Further costs savings actions under way
Provision expense normalizes gradually: €289mn in Q1.16, further increasing reserves to loans to 26% and improving NPL coverage ratio to 66%. Quarterly provision expense incorporates additional drop in real estate prices in Greece reflected in collateral values
1
2
3
4
5
1
2
3
4
5
Note: recurring P&L for Q1.16 excludes results of an entity consolidated due to loan restructuring
02
17
2.3 P&L of Domestic Operations
Q1.2016 Performance of Greek Operations
NII in Greece rises qoq and yoy, positively affected by declining utilization of ELA funding and L.3723/2008 guarantees, as well as decreasing deposit costs
NFI affected by economic environment and loan deleverage
OpEx down 5% qoq, and -4% yoy including the quarterly benefit of VES (€11mn)
Note: P&L on normalized basis, excluding one-off items, for PPI components
€ mn Q1.16 Q4.15 qoq Q1.15 yoy
NII 440 422 4% 432 2%
NFI 66 71 -7% 71 -6%
Revenues 523 570 -8% 507 3%
OpEx (273) (288) -5% (272) 1%
PPI 250 282 -11% 236 6%
Loan impairment (270) (1,192) -77% (206) 31%
Pre tax result (31) (1,257) - (5) -
PAT attr.to SHs from cont. ops (21) (992) - (16) -
1
2
1
2
33
Solid NIM movement qoq
282bps, up 15bps qoq
further boost under way, from lower time deposit cost, lower ELA and zero government guarantees utilization
Pre provision income at €250mn +6% yoy4
4
Business(stock)
Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
Corporate 4.3% 4.3% 4.3% 4.3% 3.9%
SME/SBL 5.7% 5.6% 5.6% 5.5% 5.2%
Total 5.0% 4.9% 4.8% 4.6% 4.4%
Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 2.6% 4.1% 2.5% 3.7% 2.5% 3.4% 2.5% 4.6% 2.4% 4.4%
Consumer 9.4% 9.4% 9.3% 9.9% 9.4% 10.0% 9.5% 10.3% 8.9% 11.0%
Business 5.0% 5.7% 4.9% 5.9% 4.8% 6.2% 4.6% 5.9% 4.4% 5.5%
Total 4.6% 5.7% 4.5% 6.0% 4.5% 6.3% 4.3% 6.0% 4.1% 5.7%
Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
Deposits 1.15% 1.07% 0.80% 0.65% 0.59%
Sight 0.68% 0.63% 0.57% 0.60% 0.62%
Savings 0.19% 0.19% 0.17% 0.17% 0.17%
Time 1.83% 1.77% 1.56% 1.23% 1.05%
avg 3m euribor 0.05% -0.01% -0.03% -0.09% -0.19%
Loans 4.58% 4.50% 4.46% 4.33% 4.11%
Mortgages 2.61% 2.51% 2.49% 2.46% 2.38%
Consumer 9.39% 9.26% 9.36% 9.46% 8.85%
Business 4.96% 4.89% 4.82% 4.63% 4.40%
Domestic Customer Portfolio Yields
Actual rates shown above refer to total Greek banking operations, quarterly averages
Loan Rates: Front Book Rates Steadily Above Legacy Book Customer Rates: Time Deposit Rate Declines Further
18
02 2.4
Deposit rates lower in Q1.16 solely from time deposit rates
Impact in loan rates for Q1.16 attributed to euribor decline and loan restructuring
VES cost provision €110 mn
Employees ~1,000
Annual benefit ~€45 mn
Payback period 2.2 years
157 159 154 130 142 129
10
119
64
442
Q1.15 Q4.15 Q1.16 Q1.15 Q4.15 Q1.16
one-off items
1,380
1,063
701
19,401
16,72115,627
650
750
850
950
1050
1150
1250
1350
1450
1550
1650
1750
1850
Dec.12 Jun.13 Dec.13 Jun.14 Dec.14 Dec.15Mar.16
19
Operating Expenses2.502
54% 54%
Q1.15 Q1.16
Cost to Income Ratio (%)
Domestic Headcount & Footprint Further Optimisation (#)
54%52%
Q1.15 Q1.16
Group Staff & Administrative Expenses (€mn)
Staff costs
-49% from peak
GREECEAdmin costs278
186
GROUP
-19% from peak
3rd VES Information
pro-forma FTEs in Greece at 14.6k
already booked in Q4.15
160131
1
2
3
4
167134
Note: on normalized basis, excluding one-off items
Credit cards
+16% turnover
+25% avg # of puchases per active card
+29% new users
+52% active customers
+90% transactions daily
+8.5% debit cards in circulation
+67% new credit cards
+10% prepaid cards in circulation
Debit cards
+11% customer penetration
+302% turnover
+16% fees
Winbank Cards
Alternative Channels Use
Turnover +41%
Fees +18%
20
POS
EFT/POS terminals installations +185%
New merchants +221%
Turnover +78%
Fees +56%
Prepaid cards
+2.4% in transaction value
+160% in domestic trxs participation in total trxs portfolio
+350% increase in purchase amount of domestic & intra-regional card present trxs
02 2.6
Note: all growths refer to yearly performance
Asset Quality03 3.1 NPL Stock & Formation 3.6 NPE & NPE Coverage
3.2 Domestic NPL Movement 3.7 RBU Portfolio at a Glance
3.3 NPL Coverage Across Segments
3.8 RBU Perimeter
3.4 Provision & Collateral Coverage
3.9 RBU Business Customers Viability Mapping
3.5 Domestic Loan Portfolio KPIs (March 2016)
21
1,449
1,177 1,267 1,259989
773500 369
8264
111385
80
-245Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
3.21%
2.43%1.78%
1.67% 1.33%1.05%
0.68% 0.51%
0.01%0.38%
0.16%0.56%
0.12%-0.37%
NPLs (€mn) Mar.16
Business 18,188
Mortgages 4,702
Consumer 3,488
TOTAL 26,378
NPLs (€mn) Mar.16
Greece 24,715
International 1,662
TOTAL 26,378
462
260236
32 81 73174
222
-81
17815611516
11122 104
-110-96
132 84 18
-41
7216
108
-32-68
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
-300
200
700
1,200
1,700
2,200
Business Mortgages Consumer
NPL Stock & Formation03
22
Group New NPLs at Negative Territory
* pre write-off quarterly NPL formation (amount & bps over end-quarter loans) *Dec.15 ratios adjusted for seasonal loan repaid in Mar.16
Group NPL Ratio +90dpd per Product Category
Group NPLs Mix Group NPL Formation
40%42%
28%
52%
40% 42%
29%
53%
Total Business Mortgages Consumer
Q1.2016 Q4.2015
* pre write-off quarterly NPL formation
3.1
3.17%
0.52%
0.14%
-0.37%
Q4
.12
Q1
.13
Q2
.13
Q3
.13
Q4
.13
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
3.21%
0.56%
0.12%
-0.37%
Q4
.12
Q1
.13
Q2
.13
Q3
.13
Q4
.13
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
Household sector posted a -€163 mn negative NPL flow in Q1.16 andbusinesses -€69 mn
Recently introduced legislation is expected to have further positiveimpact on the effort to substantially deleverage NPL
Greek Q1.16 NPL generation -€232 mn, down from €87 mn in Q4.15
Group Q1.16 NPL generation -€245 mn, down from €80 mn in Q4.15
Retail formation negative for 2nd consecutive quarter
151
-57
38
-33
126
230
-69
11015
9815
101
-110-95
6
-40
56
11
105
-33 -68
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
23
Domestic NPL Movement
NPL Formation Negative in Q1.16 Greek NPL Formation by Segment
Note: pre write-off quarterly NPL formation in € mn or as % of gross loans
Group Greece
NPL new flows over loans (%)Business Mortgages Consumer
39.8%NPL ratio
39.7% NPL ratio
3.203
LLRs (€ mn) Mar.16
Greece 16,267
International 1,111
TOTAL 17,378
LLRs (€ mn) Mar.16
Business 12,997
Mortgages 1,755
Consumer 2,626
TOTAL 17,378
66%72% 75%
37%
65%71% 74%
35%
Total Business Consumer Mortgages
Q1.16Q4.15
NPL Coverage Across Segments03
24
NPL Coverage Ratio per Product Category
Group LLRs at 26% Over Loans
40%
66%
26%
41%
67%
28%
NPLs NPLs Coverage LLR/Loans
Greece
International
Further Increase in NPL Cash Coverage
3.3
Increased NPL coverage in Q1.16 across all loan segments
Significant stock of loan loss reserves for business loans,which comprise 2/3 of the portfolio
4% 7%9% 11%
85% 96%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
17% 25% 35%37%
108%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
53% 62% 66% 72%
149%77%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
20% 25% 28% 30%
104%74%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
74% 74% 74% 75%90%15%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
36% 37%39% 39%
25%64%
Dec.13 Dec.14 Dec.15 LLRs coverage Collateralcoverage
Total coverage
Μar.16
Provision & Collateral Coverage03
Provision & Collateral Coverage - Consumer NPLs
Provision & Collateral Coverage - Mortgage NPLs
Provision & Collateral Coverage - Business NPLs
Provision & Collateral Coverage - Total Consumer Loans
Provision & Collateral Coverage - Total Mortgage Loans
Provision & Collateral Coverage - Total Business Loans
Mar.16
Mar.16
Mar.16
Mar.16
Mar.1625
3.4
71%
in € bn | % Total Business SME SBL Corporate Mortgage Consumer
Loans 62.3 40.0 19.4 4.4 16.3 16.1 6.2
NPL Ratio 40% 42% 50% 49% 30% 29% 55%
LLR / Total Loans 26% 30% 35% 26% 26% 11% 41%
LLR + Collateral / Total Loans 97% 103% 117% 110% 84% 96% 62%
LLR / NPL 66% 72% 70% 52% 86% 37% 75%
LLR + Collateral / NPL 133% 150% 152% 138% 149% 108% 88%
03 3.5 Domestic Loan Portfolio KPIs (March 2016)
Loans: KPIs per Segment
1.8%
1.9%
2.4%
2.7%
4.2%
4.3%
4.5%
5.5%
7.7%
8.3%
9.9%
11.1%
9.9%
25.8%
Agriculture
Transportation & Storage
Other Services
Electricity, Gas, Steam
Shipping
Real Estate
Financial & Insurance
Accommodation & Food
Other
Construction
Wholesale & Retail Trade
Manufacturing
Consumer
Mortgages
Loan Composition (%)
26
Retail
37.4% 37.2%
52.1% 51.4%
GroupNPL
90dpd
ImpliedGroup
NPE
+8.8%
NPE & NPE Coverage03 3.6
Piraeus Group NPL to NPE Reconciliation (Mar.16) Piraeus Group NPL-NPE-LLR Data per Product (Mar.16)
27
€ bn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 46.6 26.7 18.2 3.2 4.3 1.0
Mortgages 16.6 6.3 4.7 0.0 1.6 0.0
Consumer 7.7 3.9 3.5 0.1 0.3 0.0
Total 70.9 36.9 26.4 3.3 6.3 1.0
€ bn │ % +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 18.2 26.7 13.0 72% 49%
Mortgages 4.7 6.3 1.8 37% 28%
Consumer 3.5 3.9 2.6 75% 67%
Total 26.4 36.9 17.4 66% 47%
(*) NPL ratio over loans including off balance sheet exposures (LC,LGs). Likewise for NPE ratio for both numerator (€0.5 bn) and denominator (€4.6 bn); Dec.2015 ratios adjusted for seasonal loan
+14.9%Coverage
65% 66%
Coverage
47% 47%
+4.6%
Dec.15 Mar.16
Group NPL 90dpd*
Mar.16 Dec.15
GroupNPE*
Impaired ContagionForborne
+1.4%
Impaired: the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne: the additional effect of the inclusion of exposures that have forbearance measures (i.e. concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion: the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
€7.5bn out of €10.6 bn:
0 dpd
28
RBU Portfolio at a Glance 03 3.7
RBU: A Dedicated Internal Unit Fully Operational as of Q3.2014RBU KPIs at a Glance
plus supporting RBU staff
Retail Banking Branch Network & Deposits
Corporate & Investment Banking
Group Financial Mngt & Control
Group Operations
CEO
Piraeus Bank BoD
Executive Committee
Group AdministrationSupport
Non-core business & Restruct. portfolio
RBU Strategy
RBU Retail, SBL, Col’s and Rec’s
Corporate and shipping recovery
SME Recovery
Commercial Workouts
Task Force Merchant Banking
Real Estate
Note: figures display balances and customers managed by Piraeus Recovery Banking Unitcustomer total number refers to unique customers
(€ bn │ %)Balances
(€ bn)Customers
(#)FTEs (#)
Corporate 6.9 1k 64
SME 3.1 2k 155
Commercial Workouts 8.7 28k 301
SB 1.5 21k
819Retail 11.3 411k
-Mortgages 7.5 80k
-Consumer 3.8 330k
Total 31.6 447k 1,339
23
1
22
37
28
10
Total Piraeus Non RBU RBU
< 90 days past due
(dpd)
> 90 days past due
(dpd)
32
2960
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
7.9
0.9
5.8
7.2
3.4
0.6
4.2 1.5
11.3
1.5
10.0
8.7
Retail Small Business Corporate& SME
Commercial Workouts
NPL balances
Performing loans balances (<90dpd)
03 3.8 RBU Perimeter
RBU Balances Overview RBU Balances by Segment
Note: figures display amounts for Piraeus Bank Greece. Sums of figures may deviate from totals due to rounding
(€ bn, 31-Mar-2016)(€ bn, 31-Mar-2016)
29
563 customers
€6.9 bn total loan balances
2,406 cases
€3.1 bn total loan balances
Operating businesses
1,797 or 75% of total
€2.6 bn or 83% of total
Viable (positive EBITDA)
1,008 or 56% of
operating cases
€1.6 bn loans or 62%of operating cases
RBU portfolio:
Corporate SMEs
03 3.9 RBU Business Customers Viability Mapping
Commercial workouts
Operating businesses
401 or 71% of total
€5.7 bn or 82% of total
Viable (positive EBITDA)
254 or 63% of
operating cases
€3.4 bn loans or 59%of operating cases
28,486 NPL cases
€8.7 bn total loan balances
Operating cases
9,858 or 35% of total
€2.4 bn or 27% of total
• Mapping taking into account borrowers’ needs, viability and affordability in a through-the-cycle approach
• Aim is to take advantage of thechanges in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
• The majority ~60% of
operating SMEs and Corporate customers are deemed viable displaying positive EBITDA
30
RBU portfolio: RBU portfolio:
Liquidity04 4.1 Greek Market Liquidity 4.6 Interbank repos
4.2 Domestic Deposits 4.7 Capital Controls Update
4.3 Piraeus Funding Cost
4.4 Wholesale Funding
4.5 EFSF|ESM Holdings
31
Eurosystem at €101bn in Mar.16 (ELA €66bn, ECB €35bn), down €25bn vs. Jun.15
0
20
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015
ELA
ECB
32
Eurosystem Funding (€bn)Customer Deposits & Currency in Circulation (€bn)
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015
100
150
200
250
300 Deposits
Currency in Circulation
40%
60%
80%
100%
120%
140%
2009 2010 2011 2012 2013 2014 2015
Loans to Deposits Ratio (%)
100
150
200
250
300
2009 2010 2011 2012 2013 2014 2015
Deposits
Loans
Loans & Deposit Balances (€bn)
Greek Market Liquidity04 4.1
Banknotes at €47bn in Mar.16, down ~€3.5bn vs. Jun.15
LDR at 127% bn in Μar.16, down 10ppts vs. Jun.15
Deposits down €2.5bn in Q1, loans down €2.9bn in Q1
Greek market Piraeus - Greece
34 +1.5 36
-1.0
35
Nov.15 Δ Depos Dec.15 Δ Depos Mar.16
53%37%
52%35%
47%63%
48%65%
Mar.15 Mar.16 Mar.15 Mar.16
Time Core
Customer Deposit Movement in Greece (€bn)
04 4.2 Domestic Deposits
Domestic Outflows Composition (€bn)
Domestic Deposit Mix (%)
131 +3.1 134
-2.5
131
Nov.15 Δ Depos Dec.15 Δ Depos Mar.16
0.8
1.1
0.5
HouseholdsBusinessesGovernment
0.4
0.2
0.4
Piraeus Q4.15 Q1.16
Mass|Farmers +0.5 -0.2
SB +0.2 -0.1
SME +0.1 -0.1
Corporate +0.2 -0.1
Govt & Other +0.5 -0.5
Total +1.5 -1.0
Movement by Segment (€bn)
Greek market Piraeus - Greece
Greek market Piraeus - Greece
Q1.16 witnessed outflows, mainly from
state deposit accounts, as well as farmers
withdrawing subsidies amounts
Greek market normally experiences
outflows in Q1, related with agri sector
(Piraeus impacted due to its large
exposure in farmers)
33
€0.4bn govt
2.91%
2.04%
1.30%
0.61% 0.57%
4.58%
3.05%
1.95%
1.14%0.98%
Dec.12 Jun.13 Dec.13 Jun.14 Dec.14 Jun.15 Dec.15 Mar.16
Total deposits
Time deposits
04 4.3 Piraeus Funding Cost
4.40%
2.71%
1.77%
0.95% 0.84%
4.58%
3.05%
1.95%
1.14%0.98%
Dec.12 Jun.13 Dec.13 Jun.14 Dec.14 Jun.15 Dec.15 Mar.16
New time deposits
Time deposits (stock)
1.81% 1.74% 1.73%
1.15%0.98% 0.90%
0.76%0.90%
1.16%
1.31% 1.23%
1.02%
Q4.14 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16
New Time Deposit Cost
Eurosystem Cost incl. P2, P3 Fees
Customer Deposit Rates in Greece (%)
Domestic Time Deposit Rates | Stock vs. New Production (%)
Domestic Νew Time Deposit Cost vs. Eurosystem Cost (%, averages)
2016 Outlook
Time deposit cost declined substantially in 2015
Τime deposit rate stood at 105bps on average in Q1.2016
from 165bps in FY.2015
Only c.€20mn state fee for L.3723/2008 use in ELA
anticipated during 2016 (vs. €120mn in 2015)
Continuous effort to reduce deposit cost in line with
approved Restructuring Plan
34
decreased utilization of
P2 guarantees
Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16
ECB 14.1 14.9 15.1 14.6 16.0 14.4
EFSF|ESM Bonds 5.7 14.2 14.4 13.9 15.3 13.8
GGBs and T-bills 1.0 - - - - -
L.3723 6.8 - - - - -
Other 0.6 0.7 0.7 0.7 0.7 0.6
ELA - 15.4 22.2 21.2 16.7 16.1
GGBs and T-bills - 0,7 1.0 0.8 0.8 0.1
L.3723 - 4.4 9.4 5.7 5.7 1.0
Loans & Other - 10.3 11.8 14.7 10.2 15.0
Total 14.1 30.3 37.3 35.8 32.7 30.4
Eurosystem Funding (€ bn)
14.9 15.1 14.6 16.0 14.4
15.4
22.2 21.2 16.716.1
10.0
14.1
30.3
37.3 35.832.7
30.429
Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16 May.16
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (€ bn)
ELA Utilization & Buffer | Ιnterbank Activity
ELA collateral buffer estimated at €9bn (late May.16), based on
existing collateral valuation & haircuts and P2 issuance ability
No utilization of Pillar 2 guarantees since April 2016 (existing ones
matured and no further roll over took place)
Interbank Repo Book (€ bn)
04
Funding through EFSF repos stood at €3.2 bn as at March 2016.
Volumes increased further till late May as counterparty interest
has expanded, while cost has narrowed close to zero
4.4 Wholesale Funding
35
12
10
8
6
4
2
0
Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16
>€4bn May.16
ESM Holdings by Maturity (€ mn)EFSF Holdings by Maturity (€ mn)
EFSF | ESM Holdings04 4.5
36
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m € -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m € -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m € -21 1,081
Total & Average 1.6 Yrs 6m € -20 2,706
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1G0AL3 19-Apr-12 19-Apr-18 6m € +46 2,340
2 EU000A1G0AM1 19-Apr-12 19-Apr-19 6m € +57 2,340
3 EU000A1G0AN9 19-Apr-12 19-Apr-20 6m € +64 2,340
4 EU000A1G0AP4 19-Apr-12 19-Apr-21 6m € +71 2,240
5 EU000A1G0AQ2 19-Apr-12 19-Apr-22 6m € +77 2,240
6 EU000A1G0A57 19-Dec-12 19-Dec-22 6m € +34 484
7 EU000A1G0A65 19-Dec-12 19-Dec-23 6m € +35 983
8 EU000A1G0A73 19-Dec-12 19-Dec-24 6m € +36 1,176
9 Total & Average 5.7 Yrs 6m € +58 14,142
end Mar.16 data, pre QE commencement
Funding (€ bn) Interbank Repos Τrends
Funding through EFSF bond repos stood at €3.2bn at Mar.16,
as activity resumed in Q4.15 (Dec.15 at €1.7bn)
Balances at >€4bn level in late May.16
Cost of funding has declined significantly ytd, matching ECB
terms
Volumes are expected to increase, as counterparty interest is
solid and expanding
37
Interbank Repos04 4.6
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Jan
.13
Jun
.13
No
v.1
3
Ap
r.14
Sep
.14
Feb
.15
Jul.1
5
Dec
.15
May
.16
Cost (rate in bps)
0
20
40
60
80
100
120
Jan
.13
Jun
.13
No
v.1
3
Ap
r.14
Sep
.14
Feb
.15
Jul.1
5
Dec
.15
May
.16
€4.1bn May.16
0bpsMay.16
04 4.7 Capital Controls Update
38
Weekly Cash
Withdrawal Limit€420 equivalent per week per customer
Purchase of Greek
Mutual FundsAllowed
New Account
Opening
• Allowed for existing (as of 11.03) customers
• Subject to specific criteria, e.g. primary
payroll account, for new customers
Greek Capital Market
InstrumentsAllowed
Additional Account
Beneficiary
• Allowed for existing (as of 11.3.16) customers
• Prohibited for new customers
Foreign Investments
LiquidationProceeds can be re-invested
Transfers from
abroad
• 100% of funds can be re-transferred abroad
• 10% of funds can be withdrawn in cash
Change of Custodian
BankProhibited when changing to foreign custodian
Outgoing Wire
Transfers abroad
• Private individuals can transfer up to €1,000
per monthTrade Related Payments
• <€250k approval at bank level
• Weekly limit for bank-level committee at €80mn
• >€250k approval by the BoG Controls’ Committee
Time Deposit
BreakAllowed Early Loan Repayment
• Allowed up to 50% of outstanding balance (as of 11.3)
• Subject to exceptions for the remaining balance (>50%),
e.g. sale of underlying collateral
20 ministerial decisions since imposition of Capital Controls, indicating a gradual relaxation of the relative framework
39
Appendices05 5.1 Group P&L and Balance Sheet
5.5 SEE Macro Outlook
5.2 Group Results: Domestic & International
5.3 Loan & Deposit Portfolios
5.4 Overview of International Operations
Profit & Loss (€ mn)
Group P&L and Balance Sheet 05
40
Balance Sheet (€ mn)
Mar.16 Dec.15
Cash/balance with Central Banks 3,511 3,645
Loans & Advances to Banks 150 180
Gross Loans 66,291 68,071
(Loan Loss Reserves) (17,378) (17,480)
Securities 20,217 20,263
- o/w EFSF Bonds 16,978 16,964
Intangibles & Goodwill 270 274
Fixed Assets 2,511 2,544
Deferred Tax Assets 5,088 5,075
Other Assets 3,393 3,362
Assets of Discontinued Operations 1,629 1,594
Total Assets 85,682 87,528
Due to Banks 33,859 34,491
Deposits 37,911 38,952
Debt Securities 95 102
Other Liabilities 2,369 2,478
Liabilities of Discontinued Ops 1,501 1,485
Total Liabilities 75,735 77,508
Total Equity 9,947 10,021
Total Liabilities & Equity 85,682 87,528
Q1.2016 Q4.2015 Q1.2015
Net Interest Income 478 463 487
Net Fee Income 74 79 78
Trading & Other Income 29 63 4
Total Net Revenues (recurring) 576 608 573
- incl. one-off Items (reported) 581 605 569
Employee Costs (160) (278) (167)
Administrative Expenses (131) (186) (134)
Depreciation & Other (28) (29) (27)
Total Operating Costs (recurring) (310) (330) (312)
- incl. one-off Items (reported) (318) (493) (328)
Recurring Pre Provision Income 266 279 261
- incl. one-off Items (reported) 263 112 242
Result from Associates 0 1 (13)
Impairment on Loans (289) (1,384) (271)
Impairment on Other Assets (12) (258) (10)
Profit Before Tax (39) (1,530) (52)
Tax 2 290 (12)
Net Profit Attributable to SHs (37) (1,238) (63)
Discontinued Ops Result (7) (31) (14)
5.1
• Discontinued operations (Egypt, Cyprus, ATE Insurance)
41
Group Results: Domestic & International05 5.2
Greece (€ mn) International (€ mn)
Q1.16 Q1.15 yoy
Net Interest Income 38 54 -30%
Net Fee Income 7 8 -13%
Banking Income 46 62 -26%
Trading & Other Income 7 (3) >100%
Total Net Revenues (recurring) 53 66 -20%
- incl. one-off Items (reported) 53 59 -10%
Employee Costs (14) (16) -13%
Administrative Expenses (19) (20) -5%
Depreciation & Other (4) (5) -20%
Total Operating Costs (recurring) (37) (41) -10%
- incl. one-off Items (reported) (37) (41) -10%
Pre Provision Income (recurring) 16 25 -36%
- incl. one-off Items (reported) 16 18 -12%
Result from Associates 0 1 -
Impairment on Loans (19) (65) -
Impairment on Other Assets (5) (1) -
Pre Tax Result (8) (47) -
Tax 8 (1) -
Net Result Attributable to SHs (16) (47) -
Discontinued Ops Result (0) (6) -
Q1.2016 Q1.2015 yoy
Net Interest Income 440 432 2%
Net Fee Income 66 71 -7%
Banking Income 506 503 1%
Trading & Other Income 22 7 >100%
Total Net Revenues (recurring) 523 507 3%
- incl. one-off Items (reported) 528 510 4%
Employee Costs (146) (151) -3%
Administrative Expenses (111) (114) -3%
Depreciation & Other (24) (23) 5%
Total Operating Costs (recurring) (273) (272) 1%
- incl. one-off Items (reported) (281) (287) -2%
Pre Provision Income (recurring) 250 236 6%
- incl. one-off Items (reported) 247 223 11%
Result from Associates 0 (14) -
Impairment on Loans (270) (206) -
Impairment on Other Assets (7) (9) -
Pre Tax Result (31) (5) -
Tax 10 (11) -
Net Result Attributable to SHs (21) (16) -
Discontinued Ops Result (7) (9) -
• Discontinued operations (Egypt, Cyprus, ATE Insurance)
Gross Loans Evolution (€ mn)
Dec.14 Mar.15 Dec.15 Mar.16 yoy qoq
Group 71,477 69,794 68,071 66,291 -5% -3%
Business 46,926 45,294 44,525 43,032 -5% -3%
Mortgages 17,277 17,292 16,740 16,545 -4% -1%
Consumer 7,274 7,207 6,806 6,713 -7% -1%
Greece 66,068 64,532 63,922 62,268 -4% -3%
Business 42,829 41,341 41,449 40,021 -3% -3%
Mortgages 16,731 16,743 16,244 16,065 -4% -1%
Consumer 6,507 6,449 6,230 6,182 -4% -1%
Intl 5,410 5,261 4,149 4,022 -24% -3%
Business 4,097 3,954 3,076 3,011 -24% -2%
Mortgages 545 550 497 480 -13% -3%
Consumer 767 758 576 532 -30% -8%
Loan & Deposit Portfolios05 5.3
• All data exclude discontinued operations (Egypt and Cyprus )
Deposits Evolution (€ mn)
Dec.14 Mar.15 Dec.15 Mar.16 yoy qoq
Group 52,749 44,354 38,952 37,911 -15% -3%
Savings 13,118 12,671 15,249 14,636 16% -4%
Sight 8,947 7,804 9,532 8,817 13% -8%
Time 30,684 23,879 14,171 14,458 -39% 2%
Greece 49,450 41,310 36,141 35,076 -15% -3%
Savings 12,888 12,428 14,995 14,364 16% -4%
Sight 8,500 7,364 9,085 8,351 13% -8%
Time 28,061 21,517 12,062 12,361 -43% 2%
Intl 3,299 3,044 2,810 2,835 -7% 1%
Savings 230 242 254 272 12% 7%
Sight 447 440 446 466 6% 4%
Time 2,623 2,362 2,110 2,097 -11% -1%
42
Overview of International Operations
AlbaniaBulgariaRomania
Serbia Ukraine
London Frankfurt
Branches (#) 120
Employees (#) 1,384
Assets 1,637
Net loans 743
Deposits 850
Branches (#) 75
Employees (#) 882
Assets 1,517
Net loans 851
Deposits 1,070
Branches (#) 26
Employees (#) 459
Assets 416
Net loans 254
Deposits 253
Branches (#) 18
Employees (#) 432
Assets 139
Net loans 35
Deposits 45
Branches (#) 39
Employees (#) 433
Assets 597
Net loans 201
Deposits 457
Branch (#) 1
Employees (#) 19
Assets 1,074
Net loans 814
Deposits 26
Branch (#) 1
Employees (#) 14
Assets 158
Net loans 14
Deposits 134
(€ mn, as at Mar.2016)
Branches
Branches (#) 280
Employees (#) 3,632
Assets 5,640
Net loans 2,911
Deposits 2,835
Total international1
05
1. Consolidated financial data for international subsidiaries
Market Shares Loans Deposits
Albania 6.7% 6.5%
Bulgaria 3.8% 3.1%
Romania 1.6% 1.2%
Serbia 2.3% 1.7%
Ukraine 0.3% 0.2%
43
5.4
Subsidiaries
SEE Macro Outlook05 5.5
Twin Deficits Have Stabilized……fiscal & external balances in sustainable levels as final consumption/ exports gain momentum
SEE Growth Οverperforms the EU…
…showing signs of green shoots amidst the ongoing international uncertainty
Table of Economic ForecastsReal GDP
(% y-o-y)
Inflation Fiscal Balance
(% GDP)
Current Account
Balance (% GDP)
2014 2015 2016f 2014 2015 2016f 2014 2015 2016f 2014 2015 2016f
Albania 2.0 2.6 3.0 1.6 1.9 1.1 -5.2 -3.9 -2.9 -12.9 -11.2 -12.0
Bulgaria 1.5 3.0 2.4 -1.4 -0.1 -0.2 -3.7 -3.0 -2.5 1.2 2.1 1.5
Cyprus -2.5 1.6 1.7 -1.4 -2.1 -1.0 -8.9 -1.0 -0.8 -4.6 -3.6 -4.0
Romania 2.9 3.8 3.9 1.1 -0.6 -0.6 -1.9 -1.5 -2.2 -0.5 -1.2 -1.6
Serbia -1.8 0.7 1.5 2.1 1.4 1.8 -6.5 -3.8 -3.5 -6.0 -4.8 -4.5
Ukraine -6.6 -9.9 1.0 12.1 48.7 14.5 -4.6 -1.2 -4.0 -4.0 -0.3 -2.0
Sources: Piraeus Bank Research, National Statistical Sources
-6
-5
-4
-3
-2
-1
0
1
2
-14 -12 -10 -8 -6 -4 -2 0 2 4
Gen
eral
Go
vern
men
t B
alan
ce (%
GD
P)
Current Account Balance (% of GDP)
2010/15
2000/09
BGN
RSD
CYP BGN
UAH
ALL
ALL RSD
RON
UAH
CYP
RON
Deflationary Pressures Remain as Inflation…
…hovers below the Central Banks’ targets
-10
0
10
20
30
40
50
60
70
-4
-2
0
2
4
6
8
10
12
Jan-
07M
ar-0
7M
ay-0
7Ju
l-07
Sep
-07
Nov
-07
Jan-
08M
ar-0
8M
ay-0
8Ju
l-08
Sep
-08
Nov
-08
Jan-
09M
ar-0
9M
ay-0
9Ju
l-09
Sep
-09
Nov
-09
Jan-
10M
ar-1
0M
ay-1
0Ju
l-10
Sep
-10
Nov
-10
Jan-
11M
ar-1
1M
ay-1
1Ju
l-11
Sep
-11
Nov
-11
Jan-
12M
ar-1
2M
ay-1
2Ju
l-12
Sep
-12
Nov
-12
Jan-
13M
ar-1
3M
ay-1
3Ju
l-13
Sep
-13
Nov
-13
Jan-
14M
ar-1
4M
ay-1
4Ju
l-14
Sep
-14
Nov
-14
Jan-
15M
ar-1
5M
ay-1
5Ju
l-15
Sep
-15
Nov
-15
Jan-
16M
ar-1
6
Countries with Piraeus Bank Presence, excl. Greece & Ukraine (L)
European Union (L)
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
.08
Q3
.08
Q4
.08
Q1
.09
Q2
.09
Q3
.09
Q4
.09
Q1
.10
Q2
.10
Q3
.10
Q4
.10
Q1
.11
Q2
.11
Q3
.11
Q4
.11
Q1
.12
Q2
.12
Q3
.12
Q4
.12
Q1
.13
Q2
.13
Q3
.13
Q4
.13
Q1
.14
Q2
.14
Q3
.14
Q4
.14
Q1
.15
Q2
.15
Q3
.15
Q4
.15
Q1
.16
% yoy
European Union
Countries with Piraeus Bank Presence, excl. Greece & Ukraine
44
4 Amerikis St, 105 64 Athens Tel. : (+30 ) 210 3335027-5062-5739, 3288332 [email protected]
Bloomberg: TPEIR GA | Reuters: BOPr.AT
ISIN: GRS014003016 | SEDOL: BYWKR93
www.piraeusbankgroup.com
Piraeus Bank IR Contacts
• George Marinopoulos
• Chryssanthi Berbati
• Vicky Diamantopoulou
• Antonis Sagris
45