Eurobank Ergasias : Second Quarter 2017 Financial Results

1

1

• Net profit €40m in 2Q2017 and €76m in 1H2017
• Core pre-provision income up 4.6% q-o-q and 9.1% y-o-y
• Operating expenses down 2.6% y-o-y
• International operations net profit €42m in 2Q2017
• Third quarter of negative NPE formation (-€193m)
• NPEs stock down by €781m in 1H2017
• Loans up by €348m in 2Q2017
• Deposits in Greece up by €0.7bn q-o-q and €0.3bn in 1H2017
• Current ELA funding down by €2.5bn from 2017 peak
• CET1 ratio at 17.4%2
• Eurobank plans to redeem €950 of preference shares with Tier II bonds

1 Grivalia Properties classified as held for sale. All previous quarters accordingly restated.

2 Pro-forma for Grivalia Properties disposal.

"A significant decrease of uncertainties over the economic and political prospects in Greece facilitates the country's recovery from the prolonged economic crisis. A number of recent positive developments, after the successful second review of the adjustment program, has resulted in improved macroeconomic conditions and market sentiment, as it was confirmed by the first issuance of sovereign debt after a long absence from the international capital markets.

These developments mark an important step forward, yet time, consistency in policies and credible efforts will be needed to fully restore market confidence. Greece needs to kickstart a cycle of solid and sustainable growth, which in turn requires continued cooperation with the country's international creditors, consistent and timely implementation of the agreements and reforms and the boosting of a pro-business environment and framework, to attract the necessary foreign investment.

In an improving climate, the Greek banking system can focus better on its main priorities, to fund the economy, improve liquidity conditions and effectively manage the stock of non-performing loans. Greek banks are gradually regaining public confidence and the slow return of deposits improves their ability to fund their clients. Within this framework, Eurobank delivers positive results and it has the trained and committed human resources and the strategic plan to deal with the challenges, support its corporate and consumer financial needs and contribute to the return of the country to positive economic growth."

Nikolaos Karamouzis, Chairman of BoD

"The quantitative and qualitative improvement of Eurobank's fundamentals gathered steam in Q2 2017.

The bank remained profitable for a sixth consecutive quarter, mainly on the back of a 9% increase of core pre - provision income (y-o-y), with a sharp 19% rise in fees and commissions. Operational cost was lower, especially in Greece (by 3.5% y-on-y), leading to an improved cost to income ratio. International operations contribute steadily to the positive results, and we expect the trend to continue in the future.

The gradual return of deposits enhanced liquidity and our capacity to support our clients. Financing households and primarily businesses as the Greek economy recovers is a strategic priority for the Bank which was confirmed by a positive credit growth in Q2 2017.

The bank's performance in the area of non-performing loans is particularly encouraging. The main indicator of Non-Performing Exposures (NPEs) remained in negative territory for a third consecutive quarter. NPE stock reduction by €0.8bn in H1 2017 is a clear sign that our portfolio consolidation strategy is working and we are delivering on all the targets agreed with the supervisory authorities.

During the first half of the year our fully-loaded Basel III CET1 capital increased by 60 basis points. Furthermore, the repayment of the €950m preference shares, by issuing Tier II bonds, improves our capital structure with a positive effect of 250 bps on our fully-loaded Basel III capital ratio (pro forma) to 17.1%.

Eurobank's positive quarterly result in terms of profitability, NPE reduction and streamlined capital basis confirms that the bank is on track to achieve all the strategic and business targets that have been set for 2017."

Fokion Karavias, CEO

Core Income (€m)

449454

Eurobank net profit rose by 8.8% q-o-q to €40m in 2Q2017 and €76m in 1H2017. In more detail:

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Operating Expenses (€m)

250 247242244 245

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Core Pre-provision income (€m)

was down by 3.9% y-o-y to €498m in 1H2017.

The NPE formation was negative by €193m for a third consecutive quarter, driving the NPE ratio down by 90basis points q-o-q to 44.1% at the end of June. At the same time, the stock of NPEs was reduced by €0.5bn q-o-q and €0.8bn in 1H2017. The 90 days past due (90dpd) formation was

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

NPE formation (€m)

positive (€91m) in 2Q2017, albeit lower by 40.9% versus 1Q2017. The coverage of NPEs improved by 30 basis points to 51.1%, while loan loss provisions came at €184m in 2Q2017 and accounted for 1.90% of net loans.

International operations remained profitable, as net profit3rose by 47.8% q-o-q to €42m in 2Q2017, from €28m in 1Q2017, with all countries being profitable.

Common Equity Tier I ratio (CET1) stood at 17.4%4of risk weighted assets at the end of June 2017. On a fully-loaded basis, CET1 rose by 50

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

3 Before discontinued operations and restructuring costs.

4 Pro-forma for the disposal of Grivalia Properties.

International Operations Net Profit 3

(€m)

basis points q-o-q to 14.4%4. Eurobank plans to redeem €950m of preference shares through issuance of Tier II bonds.

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017