Eurobank Ergasias Services and S A : 2023 Financial Results & 2024-2026 Business Plan (Correct Repetition)

Financial Results

2023 Financial Results & 2024-2026 Business Plan

• 2023 Financial Results substantially above initial guidance1
• • EPS at €31 cents
  • ROTBV2 at 18.1%
  • TBV per share up by 21.1% versus 2022 to €2.07
  • 37% of net profit2 from SEE operations
  • Total CAD at 20.2%3, CET1 at 17.0%3
  • NPE ratio at 3.5%4 - Provisions over NPEs at 86.4%
  • Loans to Deposits ratio at 72.3%, LCR at 178.6%
• Business Plan 2024-2026
• • Resilient returns in a lower interest rates environment, to be further enhanced by Hellenic Bank full integration
  • Regional bank, with diversified earnings stream: Non-Greek operations contributing c. 50% to profits
  • Create sustainable value for our shareholders: Generate mid-teens ROE5 and gradually increase payout ratio towards 50% in 20266

1. As presented in FY2022 financial results (March 2023).
2. Adjusted net profit.
3. Pro-formafor "Solar" securitization, "Leon" NPE transaction and the January 2024 €300m Tier 2 issuance. Including period profits, subject to AGM approval. Reported CAD 19.4% and CET1 16.9%.
4. Pro-formafor "Solar" securitization and "Leon" NPE transaction (€0.4bn).
5. Adjusted net profit. Based on internal capital target (CET1 c.14.5%).
6. Cash and share buy-back. Payout calculated on adjusted net profit. Subject to regulatory approval.

March 7, 2024

Financial Results

"2023 has been a remarkable year for Eurobank. On the back of higher interest rates and favourable macroeconomic trends in our region, we exceeded all our targets and executed several important strategic actions, which will allow us to expand our business and extend our footprint further.

The macroeconomic backdrop remains favourable in Greece, as well as in Cyprus and Bulgaria, with growth forecasts materially above the Eurozone average. Importantly, growth in Greece is investment-driven, supported by maturing RRF projects, which could also feed into a solid loan growth in the corporate sector. We are best placed to exploit market conditions and support high relative growth rates for the Greek economy.

Our annual results were strong across all lines. Core operating profit increased significantly, as did Tangible Book Value per share. Return on TBV reached 18%, further strengthening our capital base at over 20%, which stands well above the regulatory thresholds. Q4 was particularly strong, driving the annual increase of the loan book at 1.8 billion euro, with 20% of disbursements allocated to Green loans.

Growing organically in Greece and enhancing our regional presence are key pillars of our strategic plan. In this context, we moved forward with the acquisition of a majority stake in Hellenic Bank and BNP Personal Finance in Bulgaria.

Our consistent performance, the diversified business model and our clear strategic plan make us confident that Eurobank can continue producing robust results on a recurring basis. We aim for a return of 15% this year. The 2023 performance and the 3-year outlook should allow us to reward shareholders, starting from a payout ratio of at least 25% in 2024, gradually increasing over the coming years."

Fokion Karavias, CEO

March 7, 2024

Financial Results

2023 Financial Results Review

The operating performance of Eurobank in 2023 was robust and above the initial guidance7 in terms of profitability, asset quality and capital strength. Specifically:

• Net interest income rose by 46.9% against 2022 to €2,174m, driven by loans, bonds, derivative products and international business. Net interest margin increased by 84 basis points y-o-y to 2.75%.
• Net fee and commission income expanded by 4.2% in 2023 to €544m, mainly due to fees from lending activities and accounted for 69 basis points of total assets.
• As a result of the above, core income grew by 35.8% y-o-y to €2,717m. Total operating income increased by 3.2% to €2,803m in 2023.
• Operating expenses were up by 5.2% compared to 2022 to €902m, mainly due to SEE operations, inflationary pressures and investments in IT. The cost to core income ratio improved to 33.2% in 2023, from 42.8% in 2022, while the cost to income ratio was 32.2%.
• Core pre-provisionincome was up by 58.6% y-o-y to €1,816m, whereas pre-provisionincome strengthened by 2.3% versus 2022 to €1,902m.
• Loan loss provisions increased by 24.7% against 2022 to €345m and corresponded to 85 basis points of the average net loans.
• As a result of the above, core operating profit before tax rose by 69.4% in 2023 to €1,471m.
• Adjusted profit before tax amounted to €1,550m and adjusted net profit rose by 6.6% in 2023to €1,256m. EPS reached €0.31 and the return on tangible book value8 amounted to 18.1% in 2023. Reported net profit reached €1,140m, compared to €1,347m in 2022.
• SEE operations were profitable, as the adjusted net profit increased to €468m in 2023, from €211m in 2022, contributing 37.3% to the profitability of the Group. Core pre-provisionincome grew by 77.8% y-o-y and amounted to €522m, with core operating profit before tax rising by 68.6% in 2023 to €465m. The financial performancebothinCyprusandBulgaria improved substantiallyin2023,withtheadjustednetprofitreaching€258mand €189m respectively.
• Developments on the asset quality front were better than expected. The NPE ratio fell to 3.5%9 in 2023, from 5.2% in 2022. NPE formation was positive by €138m in 2023, albeit substantially lower than the initial expectations. The stock of NPEs decreased by €644m9 versus 2022 to €1.5bn or €0.2bn after provisions. Provisions over NPEs improved from 75.5% in 2022 to 86.4% in 2023.
• Capital adequacy remained robust during 2023, as the Total CAD reached 20.2%10 and CET1 17.0%10, against CET1 overall capital requirement of 12.2%11 in 2024.
• Tangible book value per share increased by 21.1% in 2023 to €2.07.

1. As presented in FY2022 financial results (March 2023).
2. Adjusted net profit.
3. Pro-formafor "Solar" securitization and "Leon" NPE transaction (€0.4bn).
4. Pro-formafor "Solar" securitization, "Leon" NPE transaction and the January 2024 €300m Tier 2 issuance. Including period profits, subject to AGM approval. Reported CAD 19.4% and CET1 16.9%.
5. Excluding full utilization of AT1 capacity (including at 10.4%).

March 7, 2024

Financial Results

• Total assets stood at €79.8bn and risk-weighted assets at €43.2bn12.
• Performing loans grew organically by €1.8bn in 2023. Total gross loans amounted to €42.8bn, including senior & mezzanine notes of €4.5bn. Corporate loans stood at €25.0bn, mortgages at €9.9bn and consumer loans at €3.4bn.
• Customer deposits rose by €1.8bn in 2023 to €57.4bn. Savings and sight deposits accounted for circa 65% of total and time 35%. The loans to deposits ratio was 72.3% and the liquidity coverage ratio 178.6% at the end of 2023. Eurosystem funding was reduced by €5.0bn y-o-y to €3.8bn at the end of 2023.

2024-2026 Business Plan

• In a lower interest rates environment, Eurobank aims to generate resilient returns to shareholders, which will be further enhanced by the full integration of Hellenic Bank in Cyprus, capitalizing on the strong franchise in Greece, organic growth and strategic initiatives in Cyprus and Bulgaria. The ROE13 is expected to reach 18% in 2024 and circa 15% beyond 2024, while the payout ratio will gradually increase towards 50% of profits in 202614. Eurobank, as a regional bank with diversified earnings stream, aims to ensure top line growth amid a lower rates environment, with non-Greek operations contributing c. 50% to the Group core profit in 2026. The
  2024-2026 financial goals are as follows:

1. Pro-formafor "Solar" securitization and "Leon" NPE transaction (€0.4bn).
2. Adjusted net profit. Based on internal capital target (CET1 c.14.5%).
3. Cash and share buy-back. Payout calculated on adjusted net profit. Subject to regulatory approval.
4. Adjusted net profit.
5. Cash and share buy-back. Payout calculated on adjusted net profit. Subject to regulatory approval.

March 7, 2024

Financial Results

March 7, 2024

Financial Results

Glossary - Definition of Alternative Performance Measures (APMs) and other selected financial measures/ ratios

• Adjusted net profit: Net profit/loss from continuing operations excluding restructuring costs, goodwill impairment/ gain on acquisition, gains/losses related to the transformation and NPE reduction plans, contributions to restoration initiatives following natural disasters and income tax adjustments.
• Basic Earnings per share (EPS): Net profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period, excluding the average number of ordinary shares purchased by the Group and held as treasury shares.
• Common Equity Tier 1 (CET1): Common Equity Tier I regulatory capital as defined by Regulation (EU) No 575/2013 as in force, based on the transitional rules for the reported period, divided by total Risk Weighted Assets (RWA).
• Core Operating Profit: Core pre-provision income minus impairment losses relating to loans and advances charged in the reported period.
• Core Pre-provisionIncome (Core PPI): The total of net interest income, net banking fee and commission income and income from non banking services minus the operating expenses of the reported period.
• Cost to core income: Total operating expenses divided by total core operating income. Core operating income is the total of net interest income, net banking fee and commission income and income from non banking services.
• Cost to Income ratio: Total operating expenses divided by total operating income.
• Fees and commissions: The total of net banking fee and commission income and income from non banking services of the reported period.
• Fees and commissions over assets ratio: The total of net banking fee and commission income and income from non banking services of the reported period divided by the average balance of continued operations' total assets (the arithmetic average of total assets, excluding those related to discontinued operations' at the end of the reported period, at the end of interim quarters and at the end of the previous period).
• Fully loaded Common Equity Tier I (CET1): Common Equity Tier I regulatory capital as defined by Regulation No 575/2013 as in force, without the application of the relevant transitional rules, divided by total RWA.
• Income from trading and other activities: The total of net trading income, gains less losses from investment securities and other income/ (expenses) of the reported period.
• Loans to Deposits ratio: Loans and advances to customers at amortised cost divided by due to customers at the end of the reported period.
• Liquidity Coverage Ratio (LCR): The total amount of high quality liquid assets over the net liquidity outflows for a 30-day stress period.
• Net Interest Margin (NIM): The net interest income of the reported period annualised and divided by the average balance of continued operations' total assets (the arithmetic average of total assets, excluding those related to discontinued operations at the end of the reported period, at the end of interim quarters and at the end of the previous period).
• Non-performingexposures (NPEs): Non Performing Exposures (in compliance with EBA Guidelines) are the
  Group's material exposures which are more than 90 days past-due or for which the debtor is assessed as unlikely to pay its credit obligations in full without realization of collateral, regardless of the existence of any past due amount or the number of days past due. The NPEs, as reported herein, refer to the gross loans at amortised cost except for those that have been classified as held for sale.
• NPEs formation: Net increase/decrease of NPEs in the reported period excluding the impact of write offs, sales and other movements.

March 7, 2024

Financial Results

• NPEs Coverage ratio: Impairment allowance for loans and advances to customers and ECL allowance for credit related commitments (off balance sheet items), divided by NPEs at the end of the reported period.
• NPEs ratio: Non Performing Exposures (NPEs) divided by gross loans and advances to customers at amortised cost at the end of the reported period.
• Pre-ProvisionIncome (PPI): Profit from operations before impairments, provisions and restructuring costs as disclosed in the financial statements for the reported period.
• Provisions (charge) to average Net Loans ratio (Cost of Risk): Impairment losses relating to loans and advances charged in the reported period, annualised and divided by the average balance of loans and advances to customers at amortised cost (the arithmetic average of loans and advances to customers at amortised cost, including those that have been classified as held for sale, at the beginning and the end of the reported period, as well as at the end of interim quarters).
• Return on tangible book value (RoTBV): Adjusted net profit divided by average tangible book value.
• Tangible Book Value (TBV): Total equity excluding preference shares, preferred securities and non controlling interests minus intangible assets.
• Tangible Book Value/Share (TBV/S): Tangible book value divided by outstanding number of shares as at period end excluding own shares.
• Total Capital Adequacy ratio: Total regulatory capital as defined by Regulation (EU) No 575/2013 as in force, based on the transitional rules for the reported period, divided by total Risk Weighted Assets (RWA). The RWA are the Group's assets and off-balance-sheet exposures, weighted according to risk factors based on Regulation (EU) No 575/2013, taking into account credit, market and operational Risk.

March 7, 2024

EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.

General Commercial Registry No: 000223001000

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

Notes:

1. The comparative information has been adjusted with: a) the retrospective application of IFRS 17 by the Group's associate Eurolife FFH Insurance Group Holdings S.A. and b) the presentation of operations of Eurobank Direktna disposal group as discontinued.
2. The above information is unaudited. The Annual Financial Report for the year ended 31 December 2023, including the Independent Auditor's Report, will be published by the end of March 2024.