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PANCRETA BANK | ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD FROM 01.01.2020 TO 31.12.2020 | - 2- |

Table of Contents

Α. Representations of the Board of Directors .................................................................................................... 5 Β. Independent Auditors Report .......................................................................................................................... 6 C. Annual Management Report ........................................................................................................................... 9 D. Annual Financial Statements for the period 1.1.2020 – 31.12.2020 ............................................................. 22 Ε. Notes to Financial Statements 2020............................................................................................................. 26 1. General information about the Bank ........................................................................................................ 26 2. Bases for the preparation of the annual Financial Statements ............................................................... 26 2.1. General Information .......................................................................................................................... 26 2.2. Going concern assumption ............................................................................................................... 26 2.3. New Accounting Standards and Interpretations .............................................................................. 28 2.5. Cash and cash equivalents ............................................................................................................... 31 2.6. Financial instruments ......................................................................................................................... 31 2.7. Associates .......................................................................................................................................... 35 2.8. Investment property ........................................................................................................................... 35 2.9. Intangible assets ................................................................................................................................ 35 2.10. Property, plant and equipment ......................................................................................................... 36 2.12. Income tax and deferred tax ............................................................................................................ 37 2.13. Foreclosed assets .............................................................................................................................. 37 2.14. Other financial liabilities ................................................................................................................... 37 2.16. Employee benefits ............................................................................................................................. 38 2.17. Equity ................................................................................................................................................. 38 2.19. Leases ................................................................................................................................................ 38 2.20. Revenue recognition .......................................................................................................................... 39 2.21. Earnings per share ............................................................................................................................ 40 2.23. Reporting segments ........................................................................................................................... 40 3.2. Recoverability of deferred taxes ....................................................................................................... 41 4. Risk Factors ................................................................................................................................................ 42 4.1. Risk management framework............................................................................................................ 42 4.3. Rusks related to Greek economy ...................................................................................................... 42 4.4. Financial risks .................................................................................................................................... 43 4.4.1. Credit risk ........................................................................................................................................... 43 4.4.2. Interest rate risk ................................................................................................................................. 55 4.4.3. Liquidity risk ....................................................................................................................................... 56 4.5. Operational risk ................................................................................................................................. 58 4.6. Capital adequacy .............................................................................................................................. 58 4.7. Regulatory risk ................................................................................................................................... 59 4.8. Market risk ......................................................................................................................................... 60 4.9. Foreign currency risk ......................................................................................................................... 60 4.10. Other risks .......................................................................................................................................... 60 5. Net interest income ................................................................................................................................... 61 6. Net commission income ............................................................................................................................. 61 7. Results of financial operations, dividends and other income ................................................................... 62 8. Payroll expenses ........................................................................................................................................ 63 9. General administrative expenses .............................................................................................................. 63 10. Other operating expenses................................................................................................................. 64 11. Provisions for impairment of receivables .......................................................................................... 64 12. Other results ...................................................................................................................................... 64 13. Deferred tax and other tax charges ................................................................................................. 65 15. Cash and balance with the Central Bank ......................................................................................... 65 16. Receivables from credit institutions .................................................................................................. 65 17. Financial assets ................................................................................................................................. 66 19. Tangible assets .................................................................................................................................. 70 20. Investment property ........................................................................................................................... 70 21. Intangible assets ................................................................................................................................ 71


22. Deferred tax assets ............................................................................................................................ 71 23. Other assets ....................................................................................................................................... 73 24. Foreclosed assets .............................................................................................................................. 73 25. Liabilities to central banks ................................................................................................................ 73 26. Liabilities to other credit institutions ................................................................................................. 74 27. Liabilities to customers ...................................................................................................................... 74 28. Debt securities and other borrowed funds ....................................................................................... 74 29. Employee benefits obligations .......................................................................................................... 75 30. Other liabilities .................................................................................................................................. 76 31. Share capital ..................................................................................................................................... 76 32. Share premium .................................................................................................................................. 77 33. Other reserves, retained earnings .................................................................................................... 77 34. Analysis of changes in financing activities ....................................................................................... 78 35. Leases ................................................................................................................................................ 78 40. Other information .............................................................................................................................. 80 (Potential differences in the amounts are due to rounding)


Title Pancretan Cooperative Bank LTD

Legal Framework

The Bank was constituted following the transition of the "PANCRETAN COOPERATIVE BANK Co." to a Société anonyme, in compliance with (i) the decision as of 28.06.2020 of the General Meeting of its members, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181040 (ii) the act of transformation under number 17092 / 03-07-2020 of the notary of Heraklion Styliani Kalogeraki-Archontaki, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181075 and (iii) number 4909 / 24.07.2020 (ΑΔΑ 61Μ4469ΗΛΞ - Θ4Θ) Decision of the Head of the G.E.MI. Service of the Chamber of Heraklion. The framework of foundation, operation and activity of the Bank is defined by the provisions of: a) Law 4548/2018 as applicable, b) Law 4261/5.5.2014, c) the Bank's Charter.

Year of foundation 1993

Operating License of Cooperative Credit Institution Bank of Greece Governor's Act 2306/19.5.1994

Number of Branches 42 branches, 9 sub-branches, 62 ΑΤΜ

Hellenic Business Registry Number 077156527000

T.I.N. - Tax Authority 096121548 , Tax Authority of Heraklion

Address 5 Ikarou Avenue, P.C. 71306, Heraklion, Crete

Phone 2810 338800

Website www.pancretabank.gr

E-mail Address [email protected]

Composition of Board of Directors

Executive Members

Chief Executive Officer Antonios Vartholomeos

Deputy Chief Executive Officer Georgios Kourletakis

Non-Executive Members

Chairman Dimitrios Dimopoulos

Α’ Vice President Iosif Sifakis

B’ Vice President Georgios Sallas

C’ Vice President Antonios Vasilakis

Independent Non-Executive Member Iordanis Hatzikonstantinou

Other Non-Executive Members Konstantinos Papadakis

Stylianos Vorgias

The current Annual Financial Report comprises as follows: (Α) Representations of the Board of Directors, (Β) Independent Auditor’s Report, (C) Board of Directors’ Annual Report, (D) Annual Financial Statements for Financial Year 2020 (1.1 – 31.12.2020), and (Ε) Notes to Financial Statements for Financial Year 2020 (1.1 – 31.12.2020).

http://www.pancretabank.gr/


Α. Representations of the Board of Directors The below statements are made by the following Members of the Board of Directors of Pancreta Bank SA:

1. Dimitrios G. Dimopoulos, Chairman of the Board of Directors, 2. Antonios M. Vartholomeos, Chief Executive Officer 3. Georgios P. Kourletakis, Deputy Chief Executive Officer

We certify, that as far as we know: a) The Annual Financial Statements for the financial year ended as of December 31, 2020, were prepared according to the effective I.F.R.S., present truly and fairly the Assets and Liabilities, the Equity and the Financial Results of Pancreta Bank , and b) The Board of Directors Annual Report provides a true view of the Banks performance and results including a description of the main risks and uncertainties it is exposed to.

Heraklion, 30 June 2021

The Chairman of the Board of Directors

The Chief Executive Officer The Deputy Chief Executive Officer

Dimitrios G. Dimopoulos Antonios M. Vartholomeos Georgios P. Kourletakis


Β. Independent Auditors Report Independent Auditors Report To the Shareholders of “PANCRETA BANK SA” Report on the financial statements Opinion We have audited the accompanying financial statements of “PANCRETA BANK SA”(the Bank), which comprise the statement of financial position as at December 31st, 2020, the statements of comprehensive income, changes in equity and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as at 31 December, 2020, its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards (I.F.R.S.), as adopted by the European Union. Material uncertainty related to going concern We draw your attention to Notes 2.2 and 4.6 to the financial statements, in particular to the following issues: a) the Bank's capital surplus as at 31.12.2020 is limited (Total Capital Ratio), b) its operating profitability does not provide sufficient margin to absorb expected credit losses that may increase due to the overall slowdown in economy arising from COVID-19 as well as the actions taken by the Management in order to facilitate frontloaded decrease in NPEs, and) c) the intended increase in the share capital of the Bank that may be necessary for maintaining its capital adequate which is a future event not controlled exclusively by the Bank. The above events indicate the existence of substantial uncertainty that may cast significant doubt on the Bank's ability to continue as a going concern. Our opinion is not qualified in respect of this matter. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters, as well as the related risks of significant misstatement, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Impairment of loans and receivables from clients at amortized cost Description Addressing As at 31 December, 2020, loans and other receivables from the Bank’s clients stood at € 1,23 billion, compared to € 1,145 billion as at 31 December, 2019, after accumulated provisions for impairment losses of € 342 million as at 31 December, 2020, compared to € 340 million as at 31 December, 2019. The Bank calculates the provision for impairment of loans in accordance with IFRS 9 on an individual or collective basis. IFRS 9 refers to the expected credit losses (ECL). Measurement of expected credit losses requires the use of complex models, as well as a significant number of estimates and assumptions regarding the future economic conditions and potential behavior of borrowers. Given the significance of the factors, mentioned below, we considered that impairment of loans from customers constitutes a key audit matter and a significant audit risk: Significance of the size of the loans in the financial

statements. Complexity of the loan impairment calculation. Subjectivity of the management's estimates and

assumptions required for that purpose. Effect of COVID-19 pandemic on making estimates, on

the Greek economy and tourism to which the Bank has a high exposure.

Note 2.6 to the Bank’s financial statements refers to the key accounting policies and note 4.4.1 discloses credit risk.

Following the Risk-Based Approach, we evaluated the methodology and policies applied by the management in relation to impairment of loans and receivables from clients. Our audit procedures included, inter alia, the following: We assessed completeness of IFRS 9 application, giving special emphasis on methodology, policies and significant assumptions applied by the management in order to determine the expected credit losses. In particular: We assessed the business model and the appropriate

classification of financial assets at amortized cost based on assessment of contractual cash flows solely relating to capital and interest payments (SPPI test)

We assessed consistency of the methodology followed while staging

We assessed the reasonableness of the assumptions used by the management under applying the expected credit loss model and the amendments required due to Covid-19 pandemic.

We reviewed the procedures applied in calculating the expected credit loss and examined the reasonableness of the amount in relation to the exposure classification and key assumptions of the model (PD, LGD, Cure rate), definition of default and macroeconomic assumptions.

We confirmed, on a sample basis, the reasonableness of the key assumptions used to measure impairment of individually assessed exposures, existence and valuation of collaterals as well as other specific characteristics of the loan.

We assessed the design and implementation of internal controls related to calculating expected credit losses (ECL) based on the applied methodology.

Furthermore, we received the loan tape of the Bank in electronic form and examined: sound technical functioning of the formulas applied for

calculating expected credit loss and other quantitative parameters and data.


the numerical agreement and accuracy with the Bank's Trial Balance and the respective accounts of the financial statements.

We evaluated the extent to which the disclosures in the financial statements adequately reflect the volume of the credit risk.

Recoverability of deferred tax assets Description Addressing As at December 31, 2020, deferred tax assets of the Bank amounted to € 67.9 million, compared to € 69.67 million as at 31 December, 2019, of which, an amount of € 45 million is not necessarily based on future profitability but pertains to deferred tax assets within the meaning of Article 27A of Law 4172/2013, according to which the Bank can convert deferred tax assets (DTA) to deferred tax credit (DTC). The measurement of recoverability of deferred tax assets is considered a key audit matter as it is highly subjective in terms of assumptions and expectations regarding the existence of future taxable profits and the assessment of the special tax framework (articles 27 & 27A of Law 4172/2013).

Following the Risk-Based Approach we evaluated the method used by the management in order to determine the recoverable amount of deferred tax assets and we examined the banks business plan as well as the assumptions used regarding the existence of future taxable profits. Our audit procedures included, inter alia, the following: We evaluated the design and implementation of internal controls related to the preparation and the review of budgets and expectations, including internal controls related to significant estimates, data, calculation and applied methodologies. We evaluated the management's estimate regarding the recent changes in the tax legislation affecting the balance of the deferred tax assets, in particular, the provisions of articles 27 and 27A of Law 4172/2013. We evaluated the reasonableness of the most significant assumptions and expectations of the management regarding future taxable profits in the light of confirming these expectations historically, based on current results and tax legislation. We evaluated the extent to which the disclosures relating to the recoverability of deferred tax assets in the financial statements are adequate.

Financial reporting ΙΤ systems Description Addressing Information systems operation and governance is a matter of high significance, since it ensures their sound operation, reliability and availability, while at the same time providing a protection framework for security, integrity, validity and accuracy of the data managed by the Bank. Consequently, the Banks’ financial reporting significantly depends significantly on its information systems as well as the automated procedures and controls of these systems. Given the complexity of these systems as well as the nature and the volume of transactions, conducted on a daily basis, the risk of error and inefficient communication between information systems is considered increased. In particular, the risk is identified in case there are incomplete or non-existent procedures and controls at entity level (General IT controls) regarding the following procedures:

Security administration Program maintenance controls Program execution controls

Should the Bank's controls not function effectively and/or are not replaced or adequately mitigated, the diffuse effect of such controls may affect our ability to ensure the completeness and accuracy of the financial reporting, recorded in the financial statements.

Our audit procedures include the following: We obtained understand of the IT environment

assisted by an IT specialist in order to identify the relevant risks.

We discussed the issues with the IT administrators and carried out walkthroughs in order to evaluate the design and implementation of the relevant general controls (General IT controls /design and implementation testing).

We confirmed the effectiveness of the general IT controls (testing of operating effectiveness).


Other information The management is responsible for the other information. The other information included in the Annual Financial Report, comprise of the Board of Director’s Report, reference to which is made in the “Report on Other Legal and Regulatory Requirements” section of our Report and the Statements of the Members of the Board of Directors, but not of the financial statements and the auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we will not express with this opinion any form of assurance conclusion thereon. In connection with our audit of the Bank’s financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise, appears to be materially misstated. If, based on the audit work performed, we conclude that there is a material misstatement therein, we are required to communicate that matter. No such issue has arisen. Responsibilities of management and of those charged with governance for the financial statements The management is responsible for the preparation and fair presentation of the financial statements in accordance with I.F.R.S., as adopted by the European Union, as well as for those internal controls the management determines as necessary, in order the preparation of financial statements that are free from material misstatement, whether due to fraud or error, to be possible. During preparing the financial statements, the management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, when applicable, matters related to going concern and the use of going concern basis of accounting, unless the management’s intention is to proceed with liquidating the Bank or discontinuing its operations, or has no other realistic option but to proceed with those actions. The Banks’s Audit Committee (article 44, Law 4449/2017) is responsible for overseeing the Bank’s financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as an aggregate, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report, which includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that the audit conducted in accordance with ISAs, incorporated into the Greek Legislation, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to affect the economic decisions of users, taken on the basis of these financial statements. As duty of the audit, in accordance with ISAs, as incorporated into the Greek Legislation, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, by designing and performing audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error, as fraud may include collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Obtain an understanding of the internal controls relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal controls. Evaluate the appropriateness of accounting principles and policies used and the reasonableness of the accounting estimates and the related disclosures made by the management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, as well as significant audit findings, including any significant deficiencies in internal controls that we identify during our audit. We also provide those charged with governance with a statement that we have complied with the relevant ethical requirements regarding independence, and we communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. Report on Other Legal and Regulatory Requirements 1. Board of Directors’Report

Taking into consideration the fact that under the provisions of paragraph 5, article 2 of Law 4336/2015 (part B), the management has the responsibility for the preparation of the Board of Directors’ Report included into this Annual Financial Report, the following is to be noted:

1. In our opinion, the Board of Directors’ Report has been prepared in compliance with the effective legal requirements of Articles 150-151, Law 4548/2018 and its content corresponds to the accompanying financial statements for the year ended as at 31/12/2020.

2. Based on the knowledge we acquired during our audit, regarding PANCRETAN COOPERATIVE BANK Ltd” and its environment, we have not identified any material misstatements in the Board of Directors’ Report.

2. Additional Report to the Audit Committee Our opinion on the accompanying financial statements is consistent with our Additional Report to the Bank’s Audit Committee,


prepared in compliance with article 11, regulation (EU) No 537/2014. 3. Provision of Non-Audit Services

We have not provided the Bank with the prohibited non-audit services referred to in article 5 of regulation (EU) No 537/2014. Non-prohibited non-audit services provided by us to the Bank during the year ended as at December 31, 2020, are disclosed in note 41 to its accompanying financial statements. 4. Auditor’s Appointment

We were first appointed as the Bank’s Chartered Accountants following as of 14.5.1995 decision of the annual regular general meeting of the partners. We were appointed again as the Bank’s Chartered Accountants following as of 11.5.1997 decision of the annual regular general meeting of the partners. Since then, our appointment has been constantly renewed for a total period of 24 years in compliance with the decisions of the annual regular general meetings of the partners.

Heraklion, 09 July 2021

The Chartered Accountant

Emmanouil Nik. Diamantoulakis S.O.E.L. Reg. Num. 13 101

C. Annual Management Report

The current Annual Report of the Board of Directors (hereinafter referred to as «the Report») pertains to the annual financial year 2020 (1.1.2020 – 31.12.2020). The current Report has been prepared and is in compliance with the relevant provisions of Article 150 – 152 of the Law 4548/18. The current Report fairly presents all the relative and legally mandatory financial information in order to provide the users of financial statements with meaningful and comprehensive information regarding the Pancretan Cooperative Bank Ltd (hereinafter referred to as the «Bank» or «Pancreta») operations within the aforementioned period. The Report, as well as the Financial Statements of the Bank and all the legally required data and statements are included in the Annual Financial Report for the financial year 2020. SECTION Α. Greek Economy SECTION B. Hellenic Bank System SECTION C. Pancreta Bank (Significant Events & Issues) SECTION D. Financial Sizes and Performance in 2020 SECTION Ε. Risk Management SECTION F. Prospects for the Future SECTION G. Non-financial information SECTION H. Publication of information under Article 6, Law 4374/2016 SECTION I. Related Parties Transactions Appendix Alternative Performance Measures Indicators (APMIs)


Α. Greek Economy

Since the end of the first quarter of 2020, the coronavirus pandemic has reversed the course of the mild recovery, in which the Greek economy had entered since 2017, setting as an immediate priority of economic policy the protection of public health and the containment of the economic losses in income and employment in order to avoid the risk of turning a temporary recession into a long-term economic crisis. Economic activity recorded significant decrease due to the COVID-19 pandemic and the restrictions imposed to address it. GDP decreased by 8.2% versus foxed prices of 2015, as both domestic and external demand shrank. Tourism activity has decreased due to the global spread of the virus and the restrictive measures taken by most governments. At the same time, suspension of operations or under-operation of companies due to restrictive measures, especially in the second and fourth quarters of the year, had an adverse impact mainly on the segment of services. The development of financial ratios and the economic climate during 2020 reflects the course of the pandemic. Business expectations have deteriorated compared to the high levels of 2019, while the consumer confidence index has lost much of the improvement in recent years. The Purchasing Managers' Index (PMI) recorded large fluctuations during the year, while the industrial production volume index decreased by 2.1%. Retail sales decreased by 4.0% in terms of volume, while passenger car sales also decreased (for the first time since 2012) (-26.6%). Multiple fiscal measures have been taken and remain effective to support businesses and employees, which, in combination with the policy actions of the European institutions - which include fiscal, monetary and structural interventions - have significantly reduced the impact. The fiscal support measures of 11.2% of GDP implemented in 2020 and the recession led to a sharp shift in the general government fiscal output from a surplus to a deficit and combined with the sharp decline in nominal output, to a significant increase in the debt-to-GDP ratio. Specifically, based on the revised provisions of the Bank of Greece, it is estimated that in 2020 the general government deficit according to the definition of enhanced supervision - will amount to 7.0% of GDP, compared to a surplus of 3.6% of GDP in 2019. Government debt is estimated to have increased to 205% of GDP in 2020, from 180.5% of GDP in 2019, mainly due to the reduction in nominal GDP. The contribution of the difference between the indirect lending rate and the rate of change of the nominal GDP (snowball effect) to the increase of the debt to GDP ratio is estimated at about 22 percentage points, reflecting the contraction of the nominal GDP. Despite the fact that in highly indebted economies such as Greece, the dynamics of public debt is an issue, affecting the growth dynamics and fiscal sustainability in the long run, inclusion of Greek government bonds, although still lagging behind the investment tier, in the emergency program of the ECB Pandemic Emergency Purchase Program (PEPP) and their acceptance as collateral in the refinancing operations of Greek banks by the Eurosystem, as well as the positive developments in the international financial markets, contributed to uninterrupted access of the Greek Government to the markets and further reduction of Greek government bond yields. The recovery of private consumption and aggregate demand is projected to gain ground later in the year, specifically from the second quarter, and lead to a positive and strong growth rate of the Greek economy. According to the provisions of the Bank of Greece, the real GDP growth rate in 2021 will be 4.2%. This provision, however, includes great uncertainty due to the risks directly related to the development of epidemiological data and the possibility of immediate removal of many restrictive and restrictive measures, but also to its particular structural characteristics of economy that largely determine the extent of the economic impact. It is estimated that, upon lifting the restrictions on citizens' mobility and gradual reopening of the economy, the resulting increase in savings will help pay off debts currently suspended and will partially finance future increases in private spending, contributing thus in the recovery of economic activity. As noted in the annual report of the Governor of the Bank of Greece, the rate, at which the Greek economy will recover, depends on three key factors: First, accelerating vaccination campaign not only nationally but also globally as the success of vaccinations will strengthen citizens' confidence in resolving the health crisis and enable them to return to normal way of life by lifting travel and other restrictions, thus contributing to the recovery of external demand, especially services such as tourism and travel. At the same time, reducing uncertainty and lifting restrictive measures will allow a gradual increase in domestic consumption and domestic investment. Secondly, the maintenance until the end of the pandemic and the consolidation of the recovery, the targeted fiscal interventions and the emergency measures taken by the banking system in categories of employees but also in productive sectors that have been hit hardest but remain financially sound. Third, the rate of activation of the Greek National Recovery and Resilience Plan (NNRP) for the absorption of capital resources to which Greece is entitled by the European instrument NGEU. Utilizing European resources from the second half of 2021 to 2026 will significantly boost growth momentum and facilitate the restoration of fiscal balance without the need to return to the austerity policies of the past that have trapped the economy in a vicious cycle of recession and stagnation. In fact, for countries like Greece, with a high ratio of public debt to GDP, the combination


of the highest possible nominal GDP growth rate and the lowest nominal lending rates possible is crucial for the de-escalation of the debt dynamics. Therefore, regarding the process of gradual return of the Greek economy to the normal way of life, it is necessary to define a hierarchy of the medium-term priorities of the economic policy around three central axes: a) restoring the fiscal balance in order to ensure the country's debt, b) strengthening the development (c) accelerating implementation of the national reform program, including the liquidations and write offs of low-quality assets held by the credit institutions. Β. Hellenic Bank System General: As recorded in the annual report of the Governor of the Bank of Greece, the main factors that shaped the financial and supervisory sizes of banks in 2020 were recording a significant amount of non-recurring income, evaluation of increased provisions for credit risk, its maintenance capital adequacy at a satisfactory level and further reduction of the stock of non-performing loans (NPLs).

Results: Regarding the results of the Banks, in the period January-September 2020, the bank sector recorded a significant increase in their operating income which, however, arose mainly from non-recurring income from financial transactions, mainly related to the Greek government bond portfolio held by the banks. There was a decrease in net interest income, mainly due to reduction in loan balance and further decline of the interest margin, which highly offset the positive effect on income of the liquidity borrowing costs decrease. Operating expenses declined, mainly due to further downsizing staff and the consequent decrease in related expenses. As a result of the above, net income increased. However, taking into account the increased provisions made in order to cover credit risk, bank sector recorded losses.

Financing: Credit expansion accelerated in 2020 compared to 2019, with annual growth rate of bank financing to private sector reaching 1.2% on average in 2020, compared to a negative rate of -0.4% in 2019. This upward trend in 2020 reflects an increase in financing towards non-financial corporations as opposed to household bank financing which continued to decline in 2020 at essentially the same average annual rate compared to 2019. During the pandemic crisis, the annual rate of credit expansion from banks to non-financial corporations (NFCs) accelerated after March 2020, reaching high levels in the second half of the year. In particular, this rate stood at 5.6% on average in 2020 (2019: 2.2%) and rose to 10.0% in December 2020, the highest level observed since June 2009. Credit expansion to NFCs during the pandemic was facilitated by the improved ability of banks to raise funds from the Eurosystem on improved terms. A significant role was also played by the increase in the inflow of bank deposits, which increased the total funds of the banks that are available for re-financing. Without overlooking the practical support of the Banking Institutions to the real economy in the midst of an economic crisis, it should be noted that in the upward trend of credit expansion to NFCs, the programs of strengthening the bank financing to companies (in sectors of the economy which have been affected by the pandemic effects), managed by the Hellenic Development Bank: the guarantee program of the COVID-19 Business Guarantee Fund and the co-financing and interest rate subsidy program of the Entrepreneurship Fund (TEPIX II). These programs encouraged the supply of loans by banks, as they reduced the credit risk of their respective portfolio. They also encouraged demand from businesses by offering them an attractive option of financing emergency capital in very favourable terms, which under regular conditions would not be available. The cumulative flow of loans disbursed in 2020 to NFCs (and self-employed) through two programs of the Hellenic Development Bank amounted to 6.4 billion euro (January-February 2021: 0.6 billion euro). In addition to the provision of new loans by banks, the measure of suspension of arrears payments by debtors, in agreement with the banks, was effective. Postponement of loan repayments by borrowers to banks temporarily increases the amount of net loan flow and their annual change rates, respectively. Deposits: In 2020, private sector deposits recorded a cumulative increase of 20.6 billion euro or 14%, which was more than double regarding the corresponding flow in 2019 (8.9 billion euro). Compared to the previous years, the non-financial corporations sector played a significant role in this increase. Domestic NFC deposits increased by 9.1 billion euro in 2020 (representing 45% of private sector flow, compared to 21% in 2019). This is justified by the effort of companies to facilitate liquidity reserves given the pandemic as well as the accumulation of liquidity resulting from direct state aid and increased bank loans credited to corporate accounts. The aforementioned increase in deposits was also helped by the measures of suspension of payments of loans and tax obligations, as well as in general by the avoidance of capital expenditures mainly during the pandemic period. Household deposits, which make up for the bulk (approximately 80%) of domestic private sector deposits, rose by € 10.0 billion in 2020, from € 6.6 billion in 2019, at an average annual growth rate and slightly accelerated during the last quarter of the year. The increase in household deposits continued in January 2021 (by 0.7 billion euro). Despite the ongoing decline in mortgage and consumer loan balances, disposable income and household deposits were assisted by fiscal pandemic income support measures as well as deferral of consumer and other spending or liabilities, while employment prospects helped to strengthen the savings behavior of households for welfare purposes against future needs.


However, the year 2020 recorded a decline in central government deposits in the banking system, mainly as a result of extensive fiscal measures to support businesses and households due to the pandemic. In particular, in 2020, central government deposits in commercial banks decreased by 4.2 billion euro or 40% compared to the end of 2019, while central government deposits in the Bank of Greece also declined between the end of 2019 and the end of 2020 by 2.3 billion euro. Deposits in the commercial banks of the Social Security Institutions (OKA) and the Local Government Organizations (OTA), which together with the central government constitute the general government sector, decreased by 1.3 billion euro or 24%. In other sectors, deposits of insurance companies and other financial institutions increased by 44%, contributing positively to the deposit base of banks by 1.4 billion euro (2019: 0.4 billion euro, 2018: 0.3 billion euro), and non-residents' deposits also increased by € 0.7 billion (or 10%) (2019: € 0.2 billion, 2018: € 0.6 billion). Bank interest rates: Deposit rates offered to non-financial corporations and households further decrease in 2020 compared to the previous year and averaged slightly above 0.20%, attributed to the improvement of credit institutions' liquidity conditions due to favourable decisions taken by the ECB on the terms of cash withdrawals from the Eurosystem and on the other hand due to the strengthening of retail deposits, it facilitated a further decrease in interest rates. More specifically, the weighted average interest rate on time deposits by households in 2020 stood at 0.26% (average 2019: 0.51%, average 2010-2018: 2.41% and January 2021: 0, 19%) and the corresponding for corporate time deposits stood at 0.22% (average 2019: 0.69%, average 2010-2018: 2.24% and January 2021: 0.11%). The overnight deposit rate fell slightly to 0.05% for households and 0.09% for NFCs, ie a decrease of 4 and 7 basis points (bp) respectively (average 2010-2018: households : 0.29%, NFC: 0.30%). In real terms, the interest rate on time deposits for both NFCs and households received positive values, as deflationary pressures prevailed from the second quarter. More specifically, the average weighted interest rate on time deposits by households stood at 1.52% in 2020 (average 2019: -0.01%) and the corresponding rate on corporate time deposits stood at 1.48% ( average 2019: 0.17%). The downward trend followed by the cost of bank financing to NFCs since the end of 2011 was halted around the first quarter of 2020, mainly due to developments in interest rates on smaller business loans. However, due to the prevailing trend, the average borrowing rate stood at a lower level in 2020 compared to 2019. More specifically, the weighted average interest rate on pre-determined loans stood at 3.06% on average in 2020, 72 basis points lower compared to the average interest rate of 2019 (average 2011-2018: 5.18% and January 2021: 2.89%). Respectively, the weighted average interest rate on loans of indefinite term amounted to 4.54% on average in 2020, basis point lower compared to the average interest rate of 2019 (average 2011-2018: 6.53% and January 2021: 4.36%). NPLs management: Regarding the quality of the domestic loan portfolio, at the end of December 2020 NPLs amounted to 47.4 billion euro, decreased by approximately 21 billion euro compared to the end of December 2019 as well as by approximately 60 billion compared to March 2016, when the highest level of NPLs was recorded. The decline in the stock of NPLs during 2020 is mainly due to sales of loans amounting to 19.3 billion euro on an individual basis (due to the utilization of the state guarantee program in securitization of loans to credit institutions, known as "Hercules") and in write-offs of 2.6 billion euro and less in receipts through active management (i.e. through restructuring/loan arrangements, collection of arrears, liquidation of collateral, etc.). Also, the reduction of NPLs was helped by the measures of inclusion of customers in a regime of suspension of instalment payment. In terms of key quality indicators of NPLs, the NPL ratio to total loans remained high (30.2%) at the end of 2020, almost ten times the corresponding size for banks supervised by the Single Supervisory Mechanism. Also, the cure rates of regular loan servicing and default rate were low during the period. Realization of securitizations through utilization of the "Hercules" program was a significant development during 2020. Moreover, some banks have launched operational transformation processes through hive down in the context of reducing the existing NPL stock. However, even after the completion of the "Hercules" program in 2021, it is estimated that the ratio of NPLs to total loans will fall to about 25% and the average capital adequacy ratio to lower than current levels with a simultaneous deterioration of the percentage of the deferred tax asset on the banks' capital. It is to be noted that the aforementioned estimates do not include the new NPLs that are expected to be added to the existing volume due to the effects of the health crisis. The Bank of Greece has estimated that this inflow of new NPLs will be approximately 8-10 billion euro, while approximately 1/3 of the loans that are in arrears are classified as loans with a significant increase in risk (Stage 2 under IFRS 9). Liquidity: The ECB package, including the acceptance of Greek bonds in refinancing operations and supervisory measures, significantly increased the liquidity of the Greek banking system. In particular, since the first quarter of 2020 Greece has benefited significantly from the ECB decisions regarding the granting of a waiver for securities issued by the Greek State from the Eurosystem eligibility criteria: a) regarding their inclusion in the extraordinary ECB (Pandemic Emergency Purchase Program - PEPP) due to pandemic and b) their acceptance of collateral in the refinancing operations of Greek banks by the Eurosystem.

Capital adequacy: Regarding capital adequacy, both the Common Equity Tier 1 (CET1) and the Capital Adequacy Ratio on a consolidated basis slightly decreased during the year-end period, but remained at a satisfactory level of 2020 (15.0% and 16.6% respectively). Incorporating the full effect of International Financial Reporting Standard 9


(IFRS 9), the CET1 ratio stood at 12.5% and the Capital Adequacy Ratio at 14.3%. In this context, it is emphasized that more than half of the banks' capital corresponds to a deferred tax receivable against the Greek State.

Hedging coronavirus (COVID-19) impact: From the beginning of March 2020 and over the next few months, the ECB Board of Directors has repeatedly instituted monetary policy measures to enable all sectors of the economy, ie households and businesses, banks and governments, to take advantage of supportive financing conditions that help absorbing the vibrations. In particular, the ECB Board of Directors decided on the following:

1. Additional acquisitions of securities under the APP program. 2. Conducting additional LTRO at a more favorable interest rate than before. 3. Significant cost reduction and increase in permitted volume of funding to be raised through targeted longer-

term refinancing operations (TLTRO-III). Also, expansion of the possibilities of early repayment of this financing.

4. New Pandemic Emergency Purchase Program (PEPP). 5. Enrichment of the variety of assets accepted by the Eurosystem as collateral. Reduction of haircuts applied to

the valuations of these elements. 6. Arrangements to limit the impact on collateral availability due to downgrades of issuers' securities or the

credit rating of individual debt securities caused by the pandemic. 7. Conducting a new series of non-targeted operations for longer-term refinancing at a favorable interest rate

in view of the emergency created by the pandemic (PELTRO). 8. Establishment of a euro liquidity facility to non-euro area central banks (EUREP). 9. Continuing regular MRO and LTRO refinancing operations, for as long as necessary, through fixed interest

rate auctions without quantitative limitation on the amount of liquidity to be granted. As far as future developments concerns, the ECB Board of Directors estimates that in the medium term appropriate funding conditions will promote economic recovery and offset the diminishing impact of the pandemic on price developments, so that accelerating inflation can approach the target for a rate just below 2%. In 2021, the ECB Board of Directors is expected to complete a thorough review of the Eurosystem monetary policy strategy to ensure that the single monetary policy remains appropriate for the purpose it serves both now and in the future. In addition, the ECB Board of Directors will decide within the current year whether to launch the exploratory phase of the preparatory work for the possible issuance of the digital euro. C. Pancreta Bank (Significant Events) Annual Regular General Meeting: On June 28, 2020, the operations of the Annual Regular General Meeting in Heraklion, Crete were completed, and transformation of the Bank into a Societe Anonyme was decided according to provisions of Law 4601/2019. Its transformation into a modern credit institution will enable expansion of its operations, into a wider range of banking operations, such as Investment Banking, Treasury and Financial Markets, Leasing, Banking and Factoring agencies and Transaction Banking. In addition, the recommendations of the Board of Directors were approved on the other issues of the agenda regarding the presentation and approval of the financial statements for the year 2019 as well as the budget for 2020.

Board of Directors: On December 22, 2020, the new Board of Directors of Pancreta Bank was established after the assumption of duties from the Chief Executive Officer and Executive Member of the Board, Mr. Antonios Vartholomeos, while the position of the Chairman (Non-executive member) was assigned to Mr. Dimitrios Dimopoulos. The term of the Board of Directors is set until the Regular General Meeting of Shareholders which will be convened no later than September 10, 2021 with the election of a new Board of Directors by the General Meeting of the Bank's shareholders.

Development of branches: The Bank's new branch was opened in Agia Paraskevi, Attica, at 449 Mesogeion Ave., on August 3, 2020. Pancreta Bank continued implementing its transformation plan into a pioneering, friendly and flexible banking institution, as at December 16, 2020, starting operating the new branch opposite the City Hall of Heraklion, at 25th of August Avenue 94. These new branches located in areas with intense commercial activity reflect the Bank's policy to develop its clientele in small and medium enterprises.

Supporting real economy in the midst of COVID-19: Pancreta Bank, continuing its efforts to strengthen the liquidity of companies affected by the adverse effects of COVID-19, participated in the Business Financing program "TEPIX II" of the Hellenic Development Bank. Moreover, being on full readiness, the network of Pancreta Bank received and served a number of applications under the first and second round of COVID-19 guarantee loans, guaranteed by the Hellenic Development Bank (HDB). The total amount of loans granted under the above program in 2020 exceeded 50 million euro. At the same time, in order to align individuals with legal entities, the Bank offered the possibility of suspending the instalments of mortgage and consumer loans in the context of the supervisory facilities granted to credit institutions operating in the European Union.


D. Financial Sizes and Performance in 2020 Assets: Total Assets increased by 477.56 million euro mainly due to the increase of the Bank's investments in government and corporate Bonds and Interest-bearing Bonds of the Greek State.

€ / % %

Total As s ets 2,1 34,458,361 1 ,656,894,352 477,564,009 28.82%Cas h and balances at Central Bank 1 54,675,1 90 31 4,992,636 (1 60,31 7,446) -50.90%Loans and other trade receivables 1 ,572,921 ,1 35 1 ,485,025,374 87,895,761 5.92%Accumulated provis ions for credit ris k 342,994,691 339,997,395 2,997,296 0.88%Deferred Tax As s ets 67,899,909 67,672,021 227,888 0.34%Other As s ets 681 ,956,81 8 1 29,201 ,71 7 552,755,1 01 427.82%

Change31 .1 2.2020 31 .1 2.201 9Account / Index

Loans: Total loans amounted to 1,573 million euro at the end of December 2020, recording an increase of 5.92%. Accumulated provisions amounted to 342.99 million euro compared to 339.99 million euro on 31.12.2019, recording an increase of 0.88%, while the coverage ratio of total loans fell to 21.81% against 22.90% in the previous year. Denounced loans amounted to 384.08 million euro, ie 24.22% of the loan portfolio. The ratio of NPLs for more than 90 days to total loans amounted to 53.76% on 31.12.2020, compared to 46.47% in the previous year. The coverage ratio of NPLs over 90 days from accumulated provisions stood at 40.56% compared to 49.27% in the previous year. Finally, the ratio of collaterals to loans amounted to 69.18%, compared to 70.78% on 31.12.2019.

€ / % %

Loans and other trade receivables 1 ,572,921 ,1 35 1 ,485,025,374 87,895,761 5.92%Accumulated provis ions for credit ris k 342,994,691 339,997,395 2,997,296 0.88%Loans coverage 1 ,088,084,1 04 1 ,051 ,038,246 37,045,857 3.52%Loans delayed (over 90 days ) 845,555,426 690,1 1 7,961 1 55,437,465 22.52%Denounced loans 384,084,864 344,866,552 39,21 8,31 2 1 1 .37%NP Es 974,1 86,478 941 ,734,1 91 32,452,287 3.45%Loans delayed (%) 53.76% 46.47% 7.29% 1 5.68%Denounced loans / Loans 24.42% 23.22% 1 .20% 5.1 5%NP Es / Loans 61 .93% 63.42% -1 .48% -2.33%P rovis ions / Loans 21 .81 % 22.90% -1 .09% -4.76%P rovis ions / Loans delayed over 90 days 40.56% 49.27% -8.70% -1 7.66%NP Es coverage rate 35.21 % 36.1 0% -0.90% -2.48%Collaterals to loans 69.1 8% 70.78% -1 .60% -2.26%Collaterals + P rovis ions / Loans 90.98% 93.67% -2.69% -2.87%


Equity: On 31.12.2020, the Bank's equity amounted to 79.95 million euro on compared to 78.99 million euro in the previous year with the change attributed to the positive result of the year. The capital adequacy ratio amounted to 11,039% (31.12.2019: 13,236%) resulting a capital surplus of 12.85 million euro compared to the minimum supervisory ratio of 10.09%. The decrease in the capital adequacy ratio despite the increase in equity is due to the supervisory reversal of credit loss due to IFRS 9 adoption in accordance with the transitional provisions (phase-in approach) and Regulation 2395/2017.

€ / % %

Equity 79,951 ,662 78,997,948 953,71 4 1 .21 %Capital adequacy / Total Capital R atio 1 1 .01 3% 1 3.236% -2.22% -1 6.79%S hares 7,894,356 7,894,356 - 0.00%S hareholders 85,437 85,345 92 0.1 1 %


CET 1 8.551 % 1 0.1 68% -1 .61 7% 4.500% 1 .1 76% 0.000% 0.000% 5.676% 2.875% 38,920,500 TIER I 9.667% 1 1 .375% -1 .708% 6.000% 1 .568% 0.000% 0.000% 7.568% 2.099% 28,41 2,432 Total Capital R atio 1 1 .039% 1 3.236% -2.1 96% 8.000% 2.090% 0.000% 0.000% 1 0.090% 0.949% 1 2,851 ,448

Capital margin

R atios

ChangeTotal Capital

R atio

B oG Additional capital

requirements

S ecurity res erves

under Law 4261 /201 4

S pec ial Counter-Cyc lical buffer

under Law 4261 /201 4

Minimum capital

requirementsR atios Margin

31 .1 2.2020 31 .1 2.201 9

It is to be noted that the BoG, taking into account the extraordinary conditions that took place due to the pandemic of Covid-19 with the decision EPATH 353 / 10.04.2020 has set the minimum total capital ratio (EDEA) at 10.09% as of 13.04.2020. Liabilities: Deposits amounted to 1,414 million euro, recording an increase compared to 31.12.2019 of 6.01%, setting the loan-to-deposit ratio at 111.22%. As at 31.12.2020, liabilities to the Central Bank amounted to 420m. in the context of targeted long-term refinancing operations (TLTROs III). The cost of deposits de-escalated further with the average cost of deposits and other interest-bearing Liabilities being limited to 1.03% compared to 1.61% in 2019.


€ / % %

Depos its 1 ,41 4,230,566 1 ,334,094,788 80,1 35,778 6.01 %Credit s ecurities 47,91 6,1 79 47,869,661 46,51 8 0.1 0%Liabilities to central banks 420,000,000 - 420,000,000 -Loans / Depos its 1 1 1 .22% 1 1 1 .31 % -0.09% -0.08%Average interes t rate of depos its & other interes t bearing liabilities 1 .03% 1 .61 % -0.58% -36.02%


Financial results: Net interest income amounted to 22.9 million euro compared to 24.9 million euro in the previous year with the Net Interest Margin ratio standing at 1.48%. Net income from commissions decreased to 3.86 million euro compared to 5.55 million euro in 2019. A significant increase of 2.35 million euro (+ 9.25%) was presented by the Bank's operating expenses amounting to 27.82 million, which is largely due to organizational restructuring and ongoing rebranding. Provisions for credit risk coverage amounted to € 3.2 million compared to € 4.3 million in the previous year. Earnings before tax amounted to profit of 678 k euro compared to profit of 6.286 million euro in the previous year. Earnings before tax and provisions for 2020 amounted to 3.88 million euro.

31 .1 2.2020 31 .1 2.201 9 € / % %

R evenue from interes t 39,789,250 48,966,1 03 (9,1 76,853) -1 8.74%Net revenue from interes t 22,939,971 24,903,577 (1 ,963,606) -7.88%Net revenue from commis s ions 3,858,688 5,555,327 (1 ,696,639) -30.54%Operating expens es 27,825,865 25,469,389 2,356,476 9.25%Operating income 26,798,659 30,458,905 (3,660,246) -1 2.02%P rovis ions for credit ris k 3,200,000 4,298,766 (1 ,098,766) -25.56%Deferred Income Tax 236,346 (1 ,972,302) 2,208,648 -1 1 1 .98%Earnings before tax 678,1 68 6,286,544 (5,608,376) -89.21 %Earnings after tax 91 4,51 3 4,31 4,242 (3,399,729) -78.80%Earnings before tax & provis ions for loans 3,878,1 68 1 0,585,31 0 (6,707,1 42) -63.36%Average depos its ' interes t rate 1 .03% 1 .61 % -0.58% -36.02%Net Interes t Margin 1 .48% 1 .78% -0.29% -1 6.56%

Account / IndexChange From January 1 s t to

Ε. Risk Management

The Bank places particular emphasis on assessing and monitoring the risks to which it is exposed. This task has been assigned to the Risk Management Division (RMD) that has developed modern methodologies and models for the purposes of assessing risk exposure. The Bank is in full compliance with the new regulatory framework under the Directive 2013/36/EC and the Regulation of EC 575/2013 which gradually introduce Basel III regulations. Directive 2013/36/EC was incorporated into Greek legislation under Law 4261/2014, which sets new banks operating framework, abolishing Law 3601/2007. Under the credit risk assessment framework, creditworthiness of borrowers is assessed through a modern evaluation system, which is taken into account during the approval procedure. Moreover, the RMD estimates the minimum capital requirements in respect of the credit risk and conducts periodic stress tests, providing estimates of the size of financial losses that could occur under the potentially extreme conditions. Apart from assessing the capital requirements as far as the credit risk is concerned, the Divisions also monitors and evaluates all the risks to which the Bank is exposed and calculates the minimum capital requirements. Regarding liquidity risk, special Policy and Liquidity Crisis Management Scheme have been established and key liquidity indicators are systematically monitored. Moreover, in compliance with the risk concentration assessment, the Bank's risk exposure is also calculated per bank operation and per bank client. The Management estimates the Bank's exposure to operational and interest rate risk. As far as the market risk is concerned, it is to be noted that the volume of trade portfolio transactions is usually under 5% of total assets and € 15 million and do not exceeds 6% of total assets and € 20 million. Therefore, according to the regulatory framework, capital requirements for market risk are embedded in credit risk and are not separately calculated. In line with the evaluation, approval and granting of loans, special attention is paid to the non-performing exposures, the reduction in which constitutes the key priority of the Bank. In May 2014, the Arrears Management Division was created, whose organizational structure was completed in November of the same year. The Division objective is to monitor and manage the non-performing exposures, according to the provisions specified in the Code of Conduct (Law 4224/2013) and BoG ECA 175//29.7.2020. Financial risks faced by the Bank are presented in Note 4 to the Financial Statements. The fiscal conditions in Greece, in conjunction with the effects expected in the economy due to the health and financial Covid-19 crisis, constitute a risk factor to the Greek bank segment in general. Any negative developments in this area would affect the Bank's liquidity, the quality of its loan portfolio, its performance and capital base. Furthermore, given the significant contribution of deferred tax to regulatory capital, the risk associated with DTA & DTC is relevant and relates to future tax rates and potentially adverse change in the legal and regulatory framework governing the handling of deferred tax assets in regulatory capital.


F. Prospects for the Future

Gradual development of the new corporate identity of Pancreta Bank (rebranding) since 2018 has marked the beginning of a new era, with the Bank implementing significant modernization and development projects, investing in technological equipment, systems and applications, while reforming its structure in accordance with the principles of modern corporate governance. The aforementioned modernization includes the transformation of the Bank into a Societe Anonyme and the reorganization of the Corporate Governance system in the context of its harmonization with the provisions of Law 4706/2020 "Corporate governance of public limited companies, modern capital market, integration in the Greek legislation of Directive (EU) 2017/828 of the European Parliament and of the Council, measures to implement Regulation (EU) 2017/1131 and other provisions" effective from 01.07.2021. Finastra's Fusion Risk platform has been added to the Bank's information systems in order to more effectively manage credit risk and automate operations, allowing users to form a more accurate and faster view of the bank's balance sheet items, thus facilitating decision-making on reducing non-performing exposures and consolidating the loan portfolio. At the same time, ongoing upgrade of the cash management department (Treasury), the new electronic banking platform ebanking and mobile banking, as well as the new website highlight the dedication and constitute the Bank's philosophy regarding the configuration of advanced customer-centric systems that will adapt to modern needs of its customers as they are shaped by market demands. However, the growth dynamics presented by the Greek economy in the fiscal year 2019, on which the general business planning of the Pancreta Bank is based, was violently halted in the first quarter of 2020 by the coronavirus pandemic (COVID-19), creating significant pressures on the banking system and posing major obstacles to normalcy. More specifically, during 2020, economic activity recorded a large and sharp decline due to the COVID-19 pandemic. Domestic and external demand significantly declined as household incomes and consumption declined, the international environment deteriorated, and corporate investment activity were limited. The recovery of private consumption and aggregate demand is expected to be gradually restored in 2021 and specifically from the second quarter leading to a positive and strong growth rate of the Greek economy. According to the provisions of the Bank of Greece, the real GDP growth rate in 2021 is budgeted at 4.2%. However, this provision contains great uncertainty due to the risks directly related to the development of epidemiological data and the possibility of immediate lifting of many restrictive and prohibitive measures, but also to the particular structural features of the economy that largely determine the extent of economic impact. It is estimated that, with the lifting of restrictions on citizens' mobility and the gradual reopening of the economy, the increase in savings in 2020 will help the smooth repayment of currently suspended liabilities and will partially finance the future growth of private thus contributing to the recovery of economic activity. Given the above, the following key issues are to be addressed in 2021: Implementation of the Banks Business Plan, the main pillars of which are: a) reducing NPEs in the coming years

through securitizations and assignments to servicers. Already in the first quarter of 2021, the Bank signed a service agreement for part of the portfolio of NPEs with Quant Master Service, thus enacting its strategic planning for the optimization of its balance sheet. b) improvement of the net interest margin, c) strengthening of the Bank’s capital adequacy through capital increase d) increase of loans and exploitation of part of the loans of the Recovery and Sustainability Fund. Furthermore:

Supporting - financing wider economy in order to absorb the shocks from the effects of the coronavirus on the economy through the use of monetary and supervisory facilities of the ECB and the respective programs of the Hellenic Development Bank.

Utilizing the expected credit loss estimation model in the context of NPEs management. Maintaining a balanced growth rate between deposits and loans. Maintaining satisfactory liquidity through deposits, but also partnerships with other financial institutions. Completing centralization of operations, while maintaining flexibility and ongoing upgrading of the quality of

services provided and customer service. The Banks Digital transformation

G. Non-financial information

Business model: PANCRETA BANK S.A. (referred and as Bank) was established in 1993 in accordance with the provisions of Law 1667/1986 and received a license to operate as Credit Institution in accordance with the 2306 / 19-5-1994 Act of the Governor of the BoG. The Bank was constituted following the transition of the "PANCRETAN COOPERATIVE BANK Co." to a Société anonyme, in compliance with (i) the decision as of 28.06.2020 of the General Meeting of its members, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181040 (ii) the act of transformation under number 17092 / 03-07-2020 of the notary of Heraklion Styliani Kalogeraki-Archontaki, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181075 and (iii) number 4909 / 24.07.2020 (ΑΔΑ 61Μ4469ΗΛΞ - Θ4Θ) Decision of the Head of the G.E.MI. Service of the Chamber of Heraklion. The framework of foundation, operation and activity of the Bank is defined by the provisions of: a) Law 4548/2018 as applicable, b) Law 4261/5.5.2014, c) the Bank's Charter.


Its objective is to generate corporate value aiming at the economic development of its shareholders and its clients. The bank has over 85,000 shareholders. It maintains an extensive customer service network, with 42 branches in Crete and 51 branches nationwide, and has a presence in Attica, Thessaloniki, Milos and Rhodes, while the network is complemented by 9 additional independent service points (ATMs). Pancreta Bank has a strong local character, as it holds a significant market share in Crete and especially in the prefecture of Heraklion but aims at the strategic development of branches nationwide. Furthermore, through its operations, the Bank supports the professionals in development of their businesses, as well as the startup businesses. Its participation in joint development efforts, with the aim of utilizing Community and National programs, participation in joint ventures aimed at strengthening local development and entrepreneurship and the generation of an organizational framework of free consulting, information, and support to its customers, differentiates Pancreta from the rest of the banking system and justify its role and existence as a successful business of the social economy.

Environment: The Bank applies environmentally responsible policies in its operational structures with the objective of reducing the PEF and especially the policies which aim at decreasing the energy and paper consumption and the enhancement of recycling programs of accumulators, electronic devices and paper. Moreover, the Bank has a firm commitment to expanding e-commerce and encourages its customers and staff in this direction. Community policy: The Bank supports various programs of communal objective, events and initiatives related to education, protection of the environment, culture, sports and the work of Non-Government-Organizations. The contribution of the Bank is focused mainly on development of cooperation, exchange of information, resources and skills, while at the same time it supports less privileged social groups, promotes culture and sports, protects the environment and promotes equal opportunities for education in a wide variety of sectors. In this context the Bank devoted to donations, sponsorships and grants the amount of € 167 k regarding various social organizations, and provides its conference room for free to culture & social and to non-profit organizations, Legal Entities of Public Law (as analyzed in the following chapter) and provides its conference room free of any charged for organizing culture & social events as well as non-profit organizations. Moreover, the Bank has developed an online portal for the purposes of providing information regarding economic and development incentives to OTAs, SMEs and Cooperatives as well as to primary sector producers and organizations. Labor issues: On 31.12.2020, the Bank employed 481 people, while the cost of payroll and other benefits for the year 2020, including insurance contributions, amounted to approximately 17.16 million Euro. The Bank responsibly applies the following policies regarding Human Resources:

Healthcare and safety Selection of staff, recruitment procedures, avoiding discriminations in the working place On-going training of employees


Recognizing the right of holding collective negotiation Providing fair payments, based on the agreements in line with those effective at the national labor market Development of evaluation & assessment systems

Η. Information under Article 6, Law 4374/2016 According to the provisions of Article 6 of Law 4374/2016 "Transparency in the relations of credit institutions with media companies and sponsored persons", the Bank is obliged to provide an analysis of the following information and data:

Payment for the year 2020 for advertising and promotion, to individuals/ legal entities which: i. Mass media enterprises, ii. Electronic media enterprises, iii. Other entity which is related with the enterprises above based on article 99 of Law 4548/2018 or

according to IAS 24, or Have direct or indirect receiver an advertising and communication business, which concerns payments to

enterprises of a’ case above.

N/N R ecipients € N/N R ecipients €

1 7TH Y.P .E . CR ETE 55,879 1 1 ATHINA 9.84 R ADIO MAR ATHON 500 2 MUS EUM NIK. KAZANTZAKIS 30,000 1 2 FIR E BR IGATE DIR ECTOR ATE P E .P Y.D. OF CR ETE 3R D EMAK OF CR ETE 484 3 A.S . GIOUHTAS 30,000 1 3 HELLENIC R ET CR OS S IER AP ETR A 1 21 4 DELFI ECONOMIC FOR UM 20,000 5 CHOLAR GOS S P OR TS UNION 1 0,000 6 INDIVIDUAL 5,426 7 MILOS HEALTH CENTER 1 ,1 90 8 50 P R IMAR Y S CHOOL 1 ,008 9 DIMOTIKOS OR G/MOS KOIN/KIS ANAP TYXIS (D.O.K.A.S .) 807

1 0 HER AKLION CHAMP ER OF COMMER CE 500

S ubtotal 1 54,81 0 Total 1 55,91 5

Payments which are performed during the financ ial year for donation, s ubs idy or for any other cas e as a gift, to indiv iduals or legal entities (Am ounts in Euro)

N/N R eceiver of paym ents € N/N R eceiver of paym ent €

1 CICER O S .A. 239,393 45 CR ETAP OS T IKE 3,000 2 IKAR OS R ADIO-TV ENTER P R IS ES S .A. 94,241 46 ATHANAS IOU DAMIANOS 3,000 3 V. S KOUTAR AS . S .A. 40,004 47 GEOR GANTONAKI AFR ODITI 3,000 4 BANKINGNEWS S .A. 32,000 48 KAP S ALAKIS S TYLIANOS 3,000 5 P AGR ITIA R ADIO-TELEVIS ION S .A. 29,000 49 TS AGAR AKI MAR IA 3,000 6 MEDIA2DAY S .A. 25,000 50 TS OMP ANAKI S . -KOTIADIS I. S ONS O.E . 3,000 7 AP E-MP E S .A. 24,000 51 FANOUR AKIS ELEFTHER IOS 3,000 8 KYKLOS S .A. 22,002 52 ALTER EGO MEDIA S .A. 2,888 9 CAP ITAL.GR S .A. 1 8,750 53 P AR AENA M. LTD 2,688 1 0 MONONEWS M.I.K.E . 1 8,000 54 GR AFIMA DIAFIMIS TIKI S .A. 2,500 1 1 CR ETALIVE LLC 1 8,000 55 FR ONTS TAGE ENTER TAINMENT S .A. 2,1 56 1 2 MUS OU ΙΚΕ 1 7,625 56 ICAP S .A. 2,1 40 1 3 TILEOP TIKI R ETHIMNOU S .A. 1 7,328 57 IDEAL IMAGE S .A. 2,1 38 1 4 R D NEWS HUB IΚΕ 1 5,000 58 FACEBOOK IR ELAND 2,082 1 5 DS NEWS AGENCY S .A. 1 4,000 59 EGLEZOS M & CO EE 2,000 1 6 FILELEFTHER OS P UBLIS HING S .A. 1 4,000 60 TILEOP TIKI R ETHYMNOU S .A. 2,000 1 7 DG NEWS AGENCY S .A. 1 4,000 61 NEO R ADIOFONO TON DIMOS IOGR AFON LTD 1 ,960 1 8 P R ES S CENTER ΜΟΝ.ΙΚΕ 1 2,000 62 AIR LINK S .A. 1 ,765 1 9 24 MEDIA S .A. 1 2,000 63 METR ODEAL ΙΚΕ 1 ,638 20 P R EMIUM S .A. 1 2,000 64 KIS S S .A. 1 ,61 3 21 NEO XR IMA P UBLIS HMENTS S .A. 1 2,000 65 CHANIOTIKIA NEA EKDOTIKI EKTYP OTIKI S .A. 1 ,607 22 LIQUID MEDIA S .A. 1 0,000 66 MEDIA OR GANIZATION S .A. 1 ,568 23 OKTAS MEDIA IKE 1 0,000 67 R ADIO P R ODUCTIONS S .A. 1 ,431 24 FILELEFTHER OS P UBLIS HING S .A. 1 0,000 68 S TO KOKKINO 1 05,5 FM 1 ,400 25 EKDOS EIS 1 908 ΙΚΕ 1 0,000 69 ALP HA R ADIO S .A. 1 ,344 26 ALP HA S ATELITE TV S .A. 8,047 70 KAR OLOS MICHAEL 1 ,300 27 GR EEN BOX EKDOTIKI S .A. 8,000 71 R ADIO THES S ALONIKI S .A. 1 ,260 28 DANDALIS ALEXANDR OS 8,000 72 INITIATIVE MEDIA DIAFIMIS TIKI S .A. 1 ,209 29 ΑΝΤΕΝΝΑ TV S .A. 7,486 73 KOUNTOUR AKI ELENI 1 ,200 30 A. MYKONIATIS S .A. 6,756 74 P S OMAS ELEFTHER IOS 1 ,200 31 CAP ITAL.GR S .A. 6,250 75 THE MEDIA WOR KS HOP M. LTD 1 ,200 32 P . ATHANAS IADIS & CO S .A. 6,000 76 R ADIOTILEOP TIKI S .A. 1 ,037 33 S YLIGAR DOS KONS TANTINOS 5,250 77 IOANNIDIS IOANNIS & CO S .A. 1 ,033 34 INDIGO VIEW P R ODUCTIONS LTD 5,220 78 LOVE R ADIO BR OADCAS TING S A 1 ,008 35 P .D. EKDOS EIS LTD 5,000 79 MAR KAKIS IOANNIS 1 ,000 36 KANTIA P LIR OFOR O IKE 5,000 80 NINOS & CO Ο.Ε . 1 ,000 37 MATHIOUDAKIS MEDIA S .A. 5,000 81 P ITR OP AKIS IAKOVOS 1 ,000 38 NEW TV S .A. 4,994 82 AGGELLAKI KYR IAKI 1 ,000 39 ALITHINO R ADIO ENTER P R IS ES S .A. 4,929 83 ELLINIKI R ADIOFONIA TELEOR AS I S .A. 934 40 NEWS DOT COM S .A. 4,226 84 KOZYR I KAL.-KOZYR IS MICH. ΟΕΕ 840 41 FR EED S .A. 4,000 85 ER OTIKOS R ADIO S .A. 756 42 MAR ATHON P R ES S ΙΚΕ 4,000 86 GR AFOTECHNIKI S .A. 756 43 NEWS DOT COM S .A. 3,674 87 LOIZOS KL. LOIZOS 588 44 GLYLOS MICHAEL 3,378

S ubtotal 845,553 Total 91 9,794

Payments for advertis ing and promotion to indiv iduals or/and legal entities(Am ounts in euro)


I. Related Parties Transactions All the transactions with related parties are carried out within the usual course of the Bank's operations under market conditions. Further analysis is provided in Note 37 to the Financial Statements. Appendix Alternative Performance Measures Indicators (APMIs) In the context of implementing the Guidelines of the European Securities and Markets Authority (ESMA) in respect of Alternative Performance Measures Indicators (APMIs), the following table presents analytical descriptions of definition and calculation of the relevant APMIs, included in the Board of Directors Annual Report 2020, as well as in the Notes to the Annual Financial Report. R atio Definition

Loans Year end loans and trade receivables

Depos its Year end trade payables

Accumulated provis ions for credit ris k Year end accumulated provis ions for impairment of loans and trade receivables

Non-Perfrom ing Loans (NPLs ) Year end loans and trade receivables delayed over 90 days

According to the definitions of the European Banking Authority (ΕΒΑ, ITS Technical S tandards ),non-perform ing expos ures are thos e that meet either or both conditions :

a. S ignificant expos ures delayed over 90 days

b. Uns ecured total uncollectible receivables without collateral, irres pective of the exis tence of a delayed or number of delayed days

Final delays Loans that according to the Bank's es timates will become non-perform ing at the year end

Interes t bearing as s ets Average period in the beginning and end year for cas h and cas h available in Central Banks ,receivables from financial ins titutions and loans and trade receivables

Common s hares (CET1 )CET 1 at year end as defined in the R egulation (EU) 575/201 3, with gradual implementation ofits provis ions to weighed as s ets

Total Capital R atio Year end total capital as defined in the R egulation (EU) 575/201 3, with gradual implementationof its provis ions to weighed as s ets

Non-Perform ing Expos ures (NPEs )


R atio Definition

Operating expens es P ers onnel fees and expens es plus general adminis trative and other operating expens es plusdepreciation and amortization for the period

Operating income Net income from interes t plus net income from commis s ions for the period

Loans / Depos its Loans and trade receivables before accumulated provis ions for credit ris k to trade payables atthe end of the period

Lon-Perform ing Loans (deleyed over 90 days ) Loans and trade receivables delayed over 90 days to loans and trade receivables beforeaccumulated provis ions for credit ris k at the end of the period

Non-perform ing expos ures (NPEs )NP Es to loans and trade receivables before accumulated provis ions for credit ris k at the end ofthe period

Coverage of non-perform ing loans (delayed over 90 days )

Accumulated provis ions for credit ris k to loans and trade receivables delayed over 90 days atthe end of the period

Coverage of non-perform ing expos ures (NPEs ) Accumulated provis ions for credit ris k to NP Es at the end of the period

Final delays / LoansLoans that according to the Bank's es timates will become non-perform ing to loans and tradereceivables before accumulated provis ions for credit ris k at the end of the period

P rovis ions / Loans Accumulated provis ions for credit ris k to loans and trade receivables before accumulatedprovis ions for credit ris k at the end of the period

Coverage / Loans Value of coverage to loans and trade receivables before accumulated provis ions for credit ris kfor the end of the period

Coverage and provis ions / Loans Value of coverage and accumulated provis ions for credit ris k to loans and trade receivablesbefore accumulated provis ions for credit ris k at the end of the period


R atio Definition

Average interes t rate on loans Interes t and s im ilar income for the period to average (on a daily bas is ) of loans and otherinteres t bearing as s ets

Average interes t rate on depos its Interes t and s im ilar expens es for the period to average (on a daily bas is ) of loans and otherinteres t bearing liabilities

Interes t margin Average interes t rate on loans les s average interes t rate on depos its for the period

Net interes t margin Net income from interes t for the period to interes t bearing as s ets

Margin effectivenes s Interes t bearing as s ets by interes t margin for the period

Margin effectivenes s / Net income from interes t Interes t bearing as s ets by interes t margin to net income from interes t for the period k

Net Interes t M argin (NIM) Net interes t income / Average balance of interes t bearing as s ets

Cos t / Income Operating expens es to operating income for the period

Operating earnings before provis ions Operating income les s operating expens es for the period

Heraklion June, 30th 2021

The Chairman of the BoD The Chief Executive Officer The Deputy Chief Executive Officer

Dimitrios G. Dimopoulos Antonios M. Vartholomeos Georgios P. Kourletakis


D. Annual Financial Statements for the period 1.1.2020 – 31.12.2020 S TATEMENT OF FINANCIAL POS ITION

Am ounts in euro Note 31 .1 2.2020 31 .1 2.201 9

As s ets Cas h and balances with Central Bank 1 5 1 54.675.1 90 31 4.992.636

Due from credit intitutions 1 6 36.027.683 7 .974.249

Financial as s ets at fair value through profit and los s 1 7 4.268.844 1 6.953.301

Financial as s ets at am ortized cos t 1 7 532.557.855 - Loans and other trade receivables 1 8 1 .572.921 .1 35 1 .485.025.374 Les s : P rovis ions for doubtful loans (342.994.691 ) (339.997.395) P roperty, plant and equipm ent 1 9 21 .679.782 21 .043.386 Inves tm ent property 20 1 5.667.000 1 5.667.000 Intangible as s ets 21 3.1 41 .548 2.723.81 5 R ights -of-us e as s ets under IFR S 1 6 1 9 6.476.950 4.661 .71 5 Deferred tax as s ets 22 67.899.909 67.672.021 Other tax as s ets 23 48.442.428 46.640.061 Foreclos ed as s ets 24 1 3.694.729 1 3.538.1 90 Total as s ets 2.1 34.458.361 1 .656.894.352

Liabilities Due to Central Banks 25 420.000.000 - Due to other financial is titutions 26 1 49.284.479 1 65.600.31 5 Due to cus tom ers 27 1 .41 4.230.566 1 .334.094.788 C redit s ecurities and other loan liabilities 28 47.91 6.1 79 47.869.661 Em ployee defined benefit obligations 29 2.754.31 7 2.622.733 Leas e lliabiities IFR S 1 6 34 6.648.238 4.772.206 Other liabilities 30 1 3.672.920 22.936.702 Total liabilities 2.054.506.699 1 .577.896.405

EquityS hare capital 31 39.471 .780 39.471 .780 Am ounts for capital increas e 31 1 8.496 - S hare prem ium 32 1 36.81 7.697 1 36.81 7.697 Other res erves 33 71 .099.21 3 71 .099.21 3 R etained earnings 33 (1 67.455.523) (1 68.390.742) Total Equity 79.951 .662 78.997.948

Total Equity and Liabilities 2.1 34.458.361 1 .656.894.352


S TATEMENT OF COMPREHENS IVE INCOME

Am ounts in euro Note 31 .1 2.2020 31 .1 2.201 9

Interes t and s im ilar incom e 39.789.250 48.966.1 03 Interes t expens e and s im ilar charges (1 6.849.279) (24.062.525) Net interes t inc om e 5 22.939.971 24.903.577

Com m is s ion incom e 9.242.497 1 0.628.1 06 Com m is s ion expens e (5.383.809) (5.072.779) Net c om m is s ion inc om e 6 3.858.688 5.555.327

Incom e from dividends 7 1 1 7.690 30.050 R es ults from financial trans actions 7 4.026.31 2 4.678.41 1 Other operating incom e 7 762.1 1 1 755.331 Total net inc om e 31 .704.771 35.922.697

Em ployee fees and expens es 8 (1 7 .1 58.1 32) (1 5.769.846) Adm inis trative expens es 9 (7 .641 .71 0) (6.726.994) Depreciation and am ortization 1 9,21 (2.579.692) (2.631 .422) Other operating expens es 1 0 (446.332) (344.1 27) Total Operating Ex pens es (27.825.865) (25.472.389)

P rovis ion for C redit ris k 1 1 (3.200.000) (4.298.766) Other valuation profit/(los s ) 1 2 251 .557 50.777 Other res ults 1 2 (252.295) 81 .224 Profit/(Los s ) before tax 678.1 68 6.286.544 Deferred tax (expens e) 1 3 236.346 (1 .972.302) Net Profit/ (Los s ) after tax 91 4.51 3 4.31 4.242 Actuarial gains (los s es ) recognized in the s tatem ent of com prehens ive incom e

28 29.1 63 (55.088)

Deferred tax recognized in the s tatem ent of com prehens ive incom e

1 3,29 (8.457) 1 5.976

Total res ults after tax 935.21 9 4.275.1 29 Net earnings after tax 935.21 9 4.275.1 29 Weighted average num ber of s hares 7 .895.737 7 .876.550 Bas ic and im paired earnings per s hare in euro 1 4 0,1 2 0,55

Earnings before tax and allow anc es for loans 3.878.1 68 1 0.585.31 0

From J anuary 1 s t to


Am ounts in euro S hare CapitalS hare

prem ium S hare c apital not regis tered

S tatutory res erves

Fair value res erves

Other res erves

Retained earnings

Total

Equity balanc e as at 1 J anuary 2020 39.471 .780 1 36.81 7.697 - 1 5.1 05.1 53 1 .853.591 54.1 40.469 (1 68.390.742) 78.997.948

S hare capital increas e - - 1 8.496 - - - - 1 8.496

Total com prehens ive incom e - - - - - - 935.21 9 935.21 9

Equity balanc e as at 31 Dec em ber 2020 39.471 .780 1 36.81 7.697 1 8.496 1 5.1 05.1 53 1 .853.591 54.1 40.469 (1 67.455.523) 79.951 .662

THE BANK'S S TATEMENT OF CHANGES IN EQUITY

Am ounts in euro S hare CapitalS hare

prem ium S hare c apital not regis tered

S tatutory res erves

Fair value res erves

Other res erves

Retained earnings

Total

Equity balanc e as at 1 J anuary 201 9 39.276.975 1 36.700.81 4 - 1 5.1 05.1 53 1 .853.591 54.1 40.360 (1 72.665.871 ) 74.41 1 .021

S hare capital increas e 1 94.805 1 1 6.883 - - - 1 09 - 31 1 .797

Total com prehens ive incom e - - - - - - 4.275.1 29 4.275.1 29

Equity balanc e as at 31 Dec em ber 201 9 39.471 .780 1 36.81 7.697 - 1 5.1 05.1 53 1 .853.591 54.1 40.469 (1 68.390.742) 78.997.948

THE BANK'S S TATEMENT OF CHANGES IN EQUITY


S TATEMENT OF CAS H FLOWS

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Operating ac tivities P rofit / (los s ) before incom e tax 678.1 68 6.286.544 Adjus tm ents in Profit for:Depreciation / im pairm ent of fixed as s ets 1 .389.91 3 1 .407.61 7 Am ortization of rights -of-us e as s ets IFR S 1 6 821 .935 749.942 Am ortization / im pairm ent of intangible as s ets 367.844 473.863 P rovis ions for loans and other receivables 3.200.000 4.298.766 Valuation of financial as s ets at fair value through profit and los s (751 .478) (244.291 ) Valuation of financial as s ets at am ortized cos t 475.567 - P rovis ion for em ployees end-of-s ervice benefits 1 60.747 1 79.483 R es ults from financial trans actions (3.896.041 ) (4.539.652) (Gains ) /los s from valuation inves tm ent property & real es tate from auctions - 1 1 7 .1 37 (Gains ) /los s from dis pos al of fixed as s ets (1 6.001 ) 41 7.284 Accrued incom e from Greek Governm ent Bonds 51 9.080 - Other non cas h expens es / (incom e) 46.51 8 -

2.996.252 9.1 46.691

Net (inc reas e) / dec reas e of as s ets related to operating ac tivities Loans and trade receivables (88.098.465) (7 .864.373) Other as s ets (1 .802.367) 432.560 Net inc reas e / (dec reas e) of liabilities related to operating ac tivities Liabilities to Cerntral Bank 420.000.000 - L iabilities to credit ins titutions (1 6.31 5.836) (5.1 06.287)

L iabilities to clients 80.1 35.778 76.498.456 Other liabilities (9.263.782) (368.627)

384.655.328 63.591 .729

Net c as h flow s from operating ac tivities before tax 387.651 .580 72.738.420 Incom e tax paid - - Net c as h flow s from operating ac tivities 387.651 .580 72.738.420

Inves ting ac tivities Acquis ition of financial as s ets at fair value (1 50.468.756) (25.588.61 9)

Acquis ition of financial as s ets at am ortized cos t (582.937.041 ) -

Acquis ition of tangible and intangible as s ets (2.795.885) (2.464.537) Acquis ition of foreclos ed as s ets (1 56.539) (2.504.1 37) P roceeds from dis pos al of financial as s ets at am ortized cos t 62.971 .300 - P roceeds from dis pos al of financial as s ets at fair value 1 54.21 3.970 26.61 8.968 P roceeds from dis pos al of foreclos ed as s ets - 1 .950.000 P roceeds from dis pos al of fixed as s ets - 2.290 Net c as h flow s from inves ting ac tivities (51 9.1 72.951 ) (1 .986.034)

Financ ing ac tivities Change in liabilities from credit s ecurities (0) 49.891 Net change in s hare capital 1 8.496 31 1 .797 R epaym ent of finance leas es IFR S 1 6 (761 .1 36) (639.452) Net c as h flow s from financ ing ac tivities (742.640) (277.763)

Net inc reas e/(dec reas e) in c as h flow s (1 32.264.01 1 ) 70.474.623 Cas h and c as h equivalents at the beginning of the year 322.966.884 252.492.261 Cas h and c as h equivalents at the end of the year 1 90.702.873 322.966.884



Ε. Notes to Financial Statements 2020 1. General information about the Bank The PANCRETA BANK S.A. (The Bank) was established in 1993 under the provisions of Law 1667/1986 and received a Credit Institution operation license in accordance with the Act of the Governor of the Bank of Greece 2306/19.5.1994. The Bank was constituted following the transition of the "PANCRETAN COOPERATIVE BANK Co." to a Société anonyme, in compliance with (i) the decision as of 28.06.2020 of the General Meeting of its members, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181040 (ii) the act of transformation under number 17092 / 03-07-2020 of the notary of Heraklion Styliani Kalogeraki-Archontaki, registered in G.E.MI. on 24.07.2020 under K.A.K. 2181075 and (iii) number 4909 / 24.07.2020 (ΑΔΑ 61Μ4469ΗΛΞ - Θ4Θ) Decision of the Head of the G.E.MI. Service of the Chamber of Heraklion. Its objective is to generate corporate value aiming at the economic development of its shareholders and clients. The bank has over 85,000 shareholders. It maintains an extensive customer service network, with 42 branches in Crete and 51 branches nationwide, and has a presence in Attica, Thessaloniki, Milos and Rhodes, while the network is complemented by 9 additional independent service points (ATMs). The Bank operates in the following main areas:

issue of loans, issue of guarantees and insurances provision of techno-economic assistance and support for the development of its clients operations provision of contracts for the benefit of its members, with financial institutions or undertakings, under

the terms defined by the BoD, and deposits.

The Bank operates in Greece.

2. Bases for the preparation of the annual Financial Statements 2.1. General Information

The Bank issues the official financial statement in accordance with the International Financial Reporting Standards (IFRS), in the frame of the mandatory transition to this accounting framework as from 1.1.2015, in accordance with the provisions of Article 1, part. 3c, Law 4308/2014“Greek GAAP, relevant regulations and other provisions. The Financial Statements of the Bank as of 31.12.2020 have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as adopted by the European Union at the time of preparation of the current financial statements, while no Standards that have been applied prior to the date of their implementation. Potential differences between the amounts in the financial statements and the corresponding amounts in the Notes to the financial statements are due to rounding. The preparation of the financial statements according to GAAP requires the use of estimates and judgments that affect the balances of asset and liability items as well as the disclosure of contingent assets and liabilities as at the financial statements preparations date and the reported revenue and expenses. Although these estimates are based on the best knowledge of the Management, actual results may ultimately differ from these estimates.

2.2. Going concern assumption

The annual Financial Statements were prepared based on the going concern assumption, deemed appropriate by the Bank's Management, despite the fact that there are factors, giving rise to uncertainty, mainly related to the Bank's capital adequacy, but also the expected impact of Covid-19 pandemic on the banking system and the economy in general. The slowdown in the economy is expected to increase the credit risk (SICR), which may lead to an increase in the expected credit losses (ECL) of the Bank. The increase in future non-performing exposures (NPEs), combined with the limited surplus of capital adequacy ratio and the operating profitability, are factors of uncertainty affecting the Bank's ability to continue as a going concern. However, the Bank's Management estimates that the above assumption is still strongly effective considering the following aspects:

Improved economic climate and the development perspective of the country, arising from the use of the funds of the European Recovery and Resilience Facility (RRF), expected to lead to a positive and strong growth rate of the economy in the coming years

Prospective addressing the pandemic through well-developed national vaccination program Expected increase in interest income following the credit expansion performed by the Bank in 2020

through the Guarantee and TEPIX II programs of the Hellenic Development Bank Further revenue enhancement under targeted long-term refinancing operations (TLTROs III) Improved level of liquidity Coverage of the minimum required capital adequacy ratio


Intended increase in the share capital up to the amount of € 100 million at the end of the next fiscal year or at the latest at the beginning of the fiscal year following it, according to the strategic planning of the Bank.

Early repayment of the 7-year Common Bond Loan of Reduced Assurance, issued on 21.12.2015 and amounting to 23.5 million euro, with simultaneous issuance of a new corresponding bond of 23.5 million euro, with an interest rate of 6%, calculated in the category 2 supervisory funds (Tier II), on 31.03.2021, with a view to strengthening regulatory equity and further de-escalating financing costs.

The Management of the Bank examined the following issues, considered significant, during the evaluation of the going concern assumption. Macroeconomic environment: During 2020, economic activity sharply declined due to the COVID-19 pandemic. Both domestic and foreign demand declined significantly, as a result of declining incomes and household consumption, but also the general deterioration of the international environment and the limitation of corporate investment activities. The losses were particularly extensive in services and especially in tourism, while significant fiscal, monetary and structural interventions were carried out that supported businesses and employees and significantly reduced the effects of the economic downturn. The key factors, expected to determine the course of economic activity in 2021, include as follows: management of the health crisis and progress of vaccination programs in Greece and Europe, as well as the effective use of European Recovery and Resilience Fund (RRF) funds. In total, during the period 2021-2026, the Greek economy is expected to benefit by Euro 30.5 billion, of which Euro 17.8 billion relates to grants and Euro 12.7 billion relates to loans on favorable terms. Especially for 2021, according to the Budget 2021, Greece expected to receive in the form of grants Euro 2.6 billion approximately from the Recovery and Resilience Mechanism and Euro 1.6 billion, from the REACT-EU initiative (Recovery Assistance for Cohesion and the Territories of Europe), as well as Euro 1.3 billion in the form of loans. The Banks capital adequacy: On 31.12.2020, the Capital Ratio“Common Equity Tier 1” (CET1 Capital Ratio) stood at 8,551%, the Capital Ratio Tier 1 (TIER I) stood at 9,667% and the Total Capital Ratio stood at 11,039%. The surplus in the Total Capital Ratio stood at 0,949% or approximately € 12,85 million.


Capital margin

R atios

ChangeTotal Capital

R atio


requirements

S ecurity res erves

under Law 4261 /201 4


under Law 4261 /201 4

Minimum capital


31 .1 2.2020 31 .1 2.201 9

The BoG, taking into account the extraordinary conditions due to the pandemic of Covid-19 with the decision EPATH 353/10.04.2020 has set the minimum total capital ratio (EDEA)1 at 10.09% as of 13.04.2020. It is pointed out that the Bank is subject to the capital requirements for maintaining a capital reserve of 2.5% in accordance with article 122 of Law 4261/2014, and in this context, maintaining the reserve will be evaluated according to the prevailing conditions. In addition, the Bank is recommended to meet an additional Pillar 2 Capital Guidance margin of + 1.5%. Meeting the Bank's capital requirements directly depends on the decision of the European Central Bank (ECB) to temporarily allow credit institutions to operate under Capital conservation buffer - CC - which, however, is not controlled by the Bank.

Liquidity: The Bank complies with liquidity and net stable funding requirements recorded in Articles 412 and 413 of the Regulation EU 275/2003 measured under LCR (Liquidity Coverage Requirement) and NSFR (net stable funding requirement, NSFR) ratios respectively. As at 31.12.2020, LCR and NSFR ratios stood at 255,99% and 116% respectively. It is to be noted that no adverse change was recorded due to the pandemic.

R equired benchmark

R atioR equired

benchmarkR atio

Liquidity Coverage R atio (LCR ) LCR > 1 00% 255.99% LCR > 1 00% 208.65%Net S table Funding R atio (NS FR ) NS FR > 1 00% 1 1 6.00% NS FR > 1 00% 1 20.00%

Liquidity R atios 31 .1 2.2020 31 .1 2.201 9

1 Supervisory Examination and Evaluation Procedure


The Bank continues to have access to E.L.A. and has available Assets that can be pledged in order to raise liquidity in case of need. The European Central Bank with decisions within 2020 accepted the securities issued by the Greek State as collateral for liquidity gathering operations. The Bank has made use of the TLTRO III program of the European Central Bank and has secured long-term liquidity (31.12.2020: € 420 million) at negative interest rates. In compliance with the decision of the BoG as of 11 March 2021 and in line with the framework of the third line of targeted Eurosystem longer-term refinancing operations (TLTROs-III), as revised under the measures announced by the ECB on 10 December 2020, the borrowing limit of the Bank in TLTROs-III transactions increased to € 744.80 million.

Business Plan: According to the Bank's Business Plan, an increase of the share capital of approximately € 100 million is projected to be performed at the end of the next fiscal year or at the beginning of the fiscal year at the latest, in order to maintain its capital adequacy and support the reduction of non-performing exposures (NPEs). The business plan makes projections for further increase of the loans with the participation of the Bank in the program of the European Fund for RRF, improvement of the interest margin and digital transformation of the Bank in order to enhance its operating profitability and improve its commercial profile. In conclusion, the financial statements of the Bank were prepared based on the going concern principle, since the Management estimates that its actions and the emerging macroeconomic conditions will allow the Bank to continue as a going concern for at least the next 12 months from the present financial statements reporting date.

2.3. New Accounting Standards and Interpretations The Bank has adopted all the new standards and interpretations, whose application is mandatory for fiscal years starting on 1 January 2020. Paragraph 2.3.1 presents the standards that have been adopted as of 1 January 2020. The standards, amendments and interpretations that have not yet entered into force or have not been adopted by the EU are presented in paragraph 2.3.2.

2.3.1. New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective and have been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01/01/2020.

Revision of the Conceptual Framework for Financial Reporting (effective for annual periods starting on or after 01/01/2020). In March 2018, the IASB issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), the objective of which was to incorporate some important issues that were not covered, as well as update and clarify some guidance that was unclear or out of date. The revised Conceptual Framework includes a new chapter on measurement, which analyzes the concept on measurement, including factors to be considered when selecting a measurement basis, concepts on presentation and disclosure, and guidance on derecognition of assets and liabilities from financial statements. In addition, the revised Conceptual Framework includes improved definitions of an asset and a liability, guidance supporting these definitions, update of recognition criteria for assets and liabilities, as well as clarifications in important areas, such as the roles of stewardship, prudence and measurement uncertainty in financial reporting. The amendments do not affect the Financial Statements of the Bank. Amendments to References to the Conceptual Framework in IFRS Standards (effective for annual periods starting on or after 01/01/2020). In March 2018, the IASB issued Amendments to References to the Conceptual Framework, following its revision. Some Standards include explicit references to previous versions of the Conceptual Framework. The objective of these amendments is to update those references so that they refer to the revised Conceptual Framework and to support transition to the revised Conceptual Framework. The amendments do not affect the Financial Statements of the Bank.

Amendments to IAS 1 and IAS 8: “Definition of Material” (effective for annual periods starting on or after 01/01/2020). In October 2018, the IASB issued amendments to its definition of material to make it easier for companies to make materiality judgements. The definition of material helps companies decide whether information should be included in their financial statements. The updated definition amends IAS 1 and IAS 8. The amendments clarify the definition of material and how it should be applied by including in the definition guidance that until


now has featured elsewhere in IFRS Standards. The amendments do not affect the Financial Statements of the Bank.

Amendments to IFRS 9, IAS 39 and IFRS 7: “Interest Rate Benchmark Reform” (effective for annual periods starting on or after 01/01/2020). In September 2019, the IASB issued amendments to some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the Interest Rate Benchmark reform. The amendments are designed to support the provision of useful financial information by companies during the period of uncertainty arising from the phasing out of interest – rate benchmarks such as interbank offered rates (IBORs). It requires companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments do not affect the Financial Statements of the Bank.

Amendments to IFRS 3: “Definition of a Business” (effective for annual periods starting on or after 01/01/2020). In October 2018, the IASB issued narrow-scope amendments to IFRS 3 to improve the definition of a business. The amendments will help companies determine whether an acquisition made is of a business or a group of assets. The amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others. In addition to amending the wording of the definition, the Board has provided supplementary guidance. The amendments do not affect the Financial Statements of the Bank.

Amendments to IFRS 16 “Leases” Covid-19 – Related Rent Concessions (effective for annual periods starting on or after 01/06/2020). In May 2020, the IASB issued amendments to IFRS 16 that provide lessees with an exemption from assessing whether a Covid-19-related rent concession is a lease modification. More specifically, the amendments clarify that if certain conditions are met, lessees are not required to assess whether particular Covid-19-related rent concessions are lease modifications. Instead, lessees that apply the practical expedient, would account for those rent concessions as if they were not lease modifications. It applies to Covid-19-related rent concessions that reduce lease payments due on or before June 30, 2021. The amendments do not affect the Financial Statements of the Bank.

2.3.2. New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued but have not been adopted by the European Union:

Amendments to IFRS 4 “Insurance Contracts” – deferral of IFRS 9 (effective for annual periods starting on or after 01/01/2021). In June 2020, the IASB issued amendments that declare deferral of the date of initial application of IFRS 17 by two years, to annual periods beginning on or after January 1, 2023. As a consequence, the IASB also extended the fixed expiry date for the temporary exemption from applying IFRS 9 “Financial Instruments”in IFRS 4 “Insurance Contracts”, so that the entities are required to apply IFRS 9 for annual periods beginning on or after January 1, 2023. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have been adopted by the European Union with effective date of 01/01/2021. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: “Interest Rate Benchmark Reform – Phase 2” (effective for annual periods starting on or after 01/01/2021). In August 2020, the IASB has finalized its response to the ongoing reform of IBOR and other interest benchmarks by issuing a package of amendments to IFRS Standards. The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. More specifically, the amendments relate to how a company will account for changes in the contractual cash flows of financial instruments, how it will account for a change in its hedging relationships as a result of the reform, as well as relevant information required to be disclosed. The above have been adopted by the European Union with effective date of 01/01/2021. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IFRS 16 “Leases”: Covid-19 – Related Rent Concessions beyond 30 June 2021 (effective for annual periods starting on or after 01/04/2021). In March 2021, the IASB issued amendments to the practical expedient of IFRS 16, that extend the application period by one year to cover Covid-19-related rent concessions that reduce only lease payments due on or


before 30 June 2022. The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IFRS 3 “Business Combinations”, IAS 16 “Property, Plant and Equipment”, IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” and “Annual Improvements 2018-2020” (effective for annual periods starting on or after 01/01/2022). In May 2020, the IASB issued a package of amendments which includes narrow-scope amendments to three Standards as well as the Board’s Annual Improvements, which are changes that clarify the wording or correct minor consequences, oversights or conflicts between requirements in the Standards. More specifically:

Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss.

Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making.

Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases.

The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any.

IFRS 17 “Insurance Contracts” (effective for annual periods starting on or after 01/01/2023). In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments, which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The amendments are designed to reduce costs by simplifying some requirements in the Standard, make financial performance easier to explain, as well as ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required when applying the Standard for the first time. The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (effective for annual periods starting on or after 01/01/2023). In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments include: (a) specifying that an entity’s right to defer settlement must exist at the end of the reporting period; (b) clarifying that classification is unaffected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued amendment to IAS 1, in response to the Covid-19 pandemic. The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IAS 1 “Presentation of Financial Statements” (effective for annual periods starting on or after 01/01/2023). In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The objective of these amendments is to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of the financial statements. More specifically, companies are required to disclose their material accounting policy information rather than their significant accounting policies. The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates” (effective for annual periods starting on or after 01/01/2023).


In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. The above have not been adopted by the European Union. The Bank will examine the impact of the above on its Financial Statements, though it is not expected to have any. The Bank does not intend to apply any of the Standards or Interpretations at an earlier date. In accordance with the accounting policies followed, the Management does not expect significant impact on the financial statements of the Bank from the application of the abovementioned Standards and Interpretations when they become effective.

2.4. Foreign currency translation Measurement and Reporting Currency: The Bank's measurement and reporting currency is euro. The financial statements are presented in euro, while the explanations and notes to the financial statements are presented in euro unless otherwise stated. Transactions and balances: Transactions in foreign currency are converted into Euro using the exchange rates effective at the transaction dates. Assets and liabilities in foreign currency at the date of the financial statements are adjusted to reflect the financial statement preparation exchange rates. Gains and losses arising from such transactions (and from the translation of assets and liabilities denominated in foreign currency) are recognized in the income statement, except when recorded in equity as recognized cash flow hedges.

2.5. Cash and cash equivalents For the purpose of preparation of the statements of cash flows, cash and cash equivalents consist of Cash on hand and at the Central Bank and short-term balances due from banks with maturity date of less than 3 months.

2.6. Financial instruments A financial instrument is any contract that creates a financial asset for one entity and a financial liability or equity instrument for another entity. Financial assets and financial liabilities are recognized in the Statement of financial Position of the Bank, once binding for at least one contractual party of the financial instrument.

2.6.1. Recognition, classification and initial measurement Investments and other (primary) financial assets (IFRS 9) Classification and measurement Under IFRS 9, financial assets are classified into one of the following three categories:

a) at amortized cost, if both of the following conditions are met: i. the financial asset is retained within a business model, the objective of which is to hold

financial assets for the purpose of collecting contractual cash flows; and ii. under the contractual conditions governing the financial asset, created specific dates cash

flows consisting exclusively of repayment of principal and interest on the solely payments of principle and interest – (SPPI).

b) at fair value through other comprehensive income directly in equity, provided that the following conditions are met:

i. the financial asset is retained in the context of a business model the objective of which is achieved both by the collection of contractual cash flows and the sale of financial assets; and

ii. based on the contractual terms of the financial asset, cash flows that consist exclusively of capital repayments and interest on the outstanding capital are generated at specific dates.

c) at fair value through profit and loss in all the other cases.

Business model evaluation: The business model of an entity is set at a level that reflects the way in which financial asset groups are managed together to achieve a particular business objective. It essentially refers to the way in which an entity manages its financial assets to generate cash flows. That is, the business model determines whether cash flows arise from the collection of contractual cash flows, the sale of financial assets, or both. Under IFRS 9, it is stated that financial assets held for trading or managed at fair value shall be measured at fair value through profit or loss.

SPPI test: In assessing whether contractual flows relate exclusively to capital and interest payments, the Bank will take into account whether these flows are consistent with a basic loan agreement, effectively checking whether the key interest rate components incorporate the consideration for the value over time money, credit risk and / or other major borrowing risks as well as a profit margin. An assessment will also be made as to whether a financial asset includes a contractual term that could affect the amount or the contractual cash flow in such a way that the above requirement did not cease to apply. In cases where contractual terms result in


exposure to risks or volatility not associated with a basic loan agreement, the relevant financial asset will be measured at fair value through profit or loss.

Evaluation of changes in classification and measurement: As at the transition date, the Bank proceeded with the evaluation of the business model in its portfolios and conducted a detailed assessment of the contractual terms in the debt securities portfolio in order to identify possible changes in their classification and measurement. The majority of the Bank's debt securities portfolio meets the 'SPPI' criterion. Financial assets are not reclassified after their initial recognition, unless there are changes in the Bank's business model in respect of financial assets management.

B us ines s Model Key Characteris tics Meas urement CategoryClas s ification of Financ ial Ins truments

Hold to Collect

▪H old to collect cash flow s

▪C ash flow s represent exclusively capital and inerest repaym ent

(S P P I criterion)▪S ales of the instrum ents regarding frequency and size is not

probable

Amortis ed Cos t▪C ash and cash equivalents

▪R eceivables from banks

▪Loans and trade receivables

Hold to Collect and S ell

▪H old to collect cash flow s m ainly for the purpose of selling the

ins truments▪C ash flow s represent exclusively capital and interest repaym ent

(S P P I creterion)

Fair Value through Other Comprehens ive Income - FVOCI

-

Other▪Intrum ents cannot be classified into the aforem entioned tw o

models ▪P otentially arising cash flow s are of irregular frequency

Fair Value through P rofit or Los s - FVP L

▪S ecurities and Investm ents in equity

ins truments

Consequently, based on the effective business model: Loans and receivables from customers and financial institutions are measured at amortized cost, Other equity instruments are measured at fair value through profit or loss, Bonds and interest-bearing Greek State Bonds as well as the corporate bonds that are to be held

until maturity in order to collect the capital and interest are measured at amortized cost. Bonds and interest-bearing Greek State Bonds that, in addition to their contractual flows, are

estimated to be able to be sold are measured at fair value through profit or loss. Financial liabilities are measured at amortized cost.

2.6.2. Impairment of financial assets

IFRS 9 introduces a model of expected credit losses (ECL). The new impairment model is applied to financial assets that are not measured at fair value through profit or loss, including loans, leases, bonds, financial collaterals and loan commitments, and no impairment loss for equity instruments will be recognized. IFRS 9 uses a "three-stage”approach that reflects changes in credit quality from initial recognition. Stage 1: Stage 1 accumulates both - low credit risk securities at the reporting date and other financial assets for which no significant increase in credit risk has been observed since the initial recognition. In such cases, a provision for losses from credit risk equal to the expected 12-month losses is recognized. Expected credit losses for 12 months are defined as the part of ECL during their entire lifetime representing the ECL arising from default of a financial instrument, probable to occur within 12 months after the reporting date. Stage 2: Stage 2 accumulates financial assets whose credit risk has increased significantly since their initial recognition and for which no loss-incurring event has been observed. In these cases, a provision for impairment equal to the expected credit losses during their entire lifetime ("lifetime expected losses") is recognized. Stage 3: Stage 3 accumulates acquired or at the time of their initial recognition credit impaired financial assets. In such cases, provision for impairment provision is always measured as an amount equal to the expected credit losses for their entire lifetime.

Measurement of expected credit losses: The amount of the expected credit loss measurement will be a weighted average estimate that takes into account the time value of money. Credit loss is the present value of the difference between (a) the contractual cash flows attributable to an entity under the contract and (b) the cash flows that the entity expects to receive. The discount for determining the present value is made at the initial effective interest rate (EIR) of the asset or the credit adjusted EIR in terms of the purchased or initial recognition credit impaired financial assets. The way an entity measures the expected credit losses of a financial instrument should, inter alia, reflect reasonable and reliable information that is available at the reporting date without undue cost or effort and relates to past events, current circumstances and future economic conditions. For measurement purposes in respect of the expected credit losses, the Bank will take into account the expected cash shortfalls with cash flows from collateral or other credit protection measures contained in the contractual terms and which are not separately recognized. An estimate of expected cash shortfalls for a collateralized financial asset reflects the amount of cash flows and the time they are expected to accrue from


the auction process after deducting the discounted collateral expense, irrespective of whether the auction is likely to occur. Expected credit losses will be calculated for the maximum contractual period in which the Bank is exposed to credit risk. The maximum contractual period is determined on the basis of the essential terms of the financial instrument, including the possibility of requesting early repayment or cancellation on the part of the Bank, as well as the right of extension from the client side. In this context, the Bank will take into account the normal credit risk mitigation process, past practices, future intentions and expected credit risk management measures during the period when it was exposed to credit risk for similar financial instruments as well as time the duration of relevant defaults for similar financial instruments following a significant increase in credit risk. In some cases, an entity may not have reasonable and reliable information available that is made available without undue cost or effort to measure the expected lifetime loss on an individual basis. In this case, the lifetime expected credit losses are recognized on a collective basis taking into account comprehensive credit risk information. This comprehensive credit risk information should incorporate not only historical information but also all relevant credit risk information, including future-oriented macroeconomic information, which concern the future, in order to approximate the result of the recognition of the expected credit losses over the lifetime when there has been a significant increase in credit risk after initial recognition at the level of an individual instrument. Measurement of expected credit losses for large exposures and impaired loans will be made on an individual basis, while for other exposures the measurement of expected credit losses can be carried out on a collective basis. Financial assets classification into stages: The Bank classifies its financial assets in those measured based on expected credit losses 12 months (Stage 1) and those for which expected credit losses recognized for the duration of their life (stage 2 and 3) in accordance with if there has been a significant increase in credit risk since initial recognition. In assessing whether a financial asset has suffered a significant increase in credit risk since initial recognition, the Bank will take into account a combination of quantitative and qualitative criteria including, but not limited to the following:

Contingent changes in residual lifetime probability of default, Absolute thresholds of probability of default in residual lifetime of financial asset, and Days of delay Additional COVID-19 related criteria

The Management may temporarily intervene by adjusting the results of the impairment model, either individually or collectively, for financial assets with common credit risk characteristics in order to take into account specific situations that may not be fully reflected in the impairment models. Financial assets that have significantly increased credit risk since initial recognition will be classified into Stage 2. When the classification criteria in Stage 2 cease to apply, the financial assets will be reclassified to Stage 1. Financial assets that are considered impaired due to credit risk will be classified into Stage 3. Subsequent transfers from Stage 3 to Stage 2 will take place when the financial assets ceases to be impaired due to credit risk.

Key parameters for determining expected credit losses Calculation of expected credit losses is based on the probability of default (PD), (loss given default - LGD), exposure at default (EAD) and other parameters such as the credit conversion factor (CCF) and the prepayment rate. In general, the Bank calculates these parameters from internally-developed statistical models, point-in-time historical data and observations, making use of the effective infrastructures it has developed in respect of the regulatory framework and risk management practices. Expected credit losses are calculated according to the following formula:

ECL Expected Credit Los s Expeceted Credit Los s PD Probability of Default Probability of Default

LGD Los s Given Default Los s given Default LGL Los s Given Los s Los s Given Los sEAD Expos ure-at-default Expos ure-at-default

Cure R ate Cure R ate

Los s Given DefaultLGD = LGL * (1 - Cure R ate)

Expected credit los s calculation formula

Abbrev iationECL = P D * EAD * LGDExpected Credit Los s

2.6.3. Definition of financial instruments fair value Fair value is defined as the price at which an asset (financial or otherwise) is sold or the price to be paid to transfer a liability (financial or otherwise) in a normal transaction between market participants at the measurement date. In accordance with the fair value measurement, it is assumed that the transaction to sell the


asset or transfer the liability takes place either: (i) on the principal market for the asset or liability, or (ii) if no principal market, the most advantageous market for the asset or liability. A financial instrument is considered to be negotiable in a main market if the prices are negotiated directly and regularly available from an exchange, broker, industry group, a pricing service company or regulatory body and those prices represent current and regular market transactions carried out at arm's length basis. An entity need not undertake exhaustive search of all possible markets to identify the principal market or, in the absence of principal market, the most advantageous market, but takes into account all reasonably available information. When such evidence to the contrary is absent, the market in which an entity would normally undertake a transaction to sell the asset or transfer the liability is considered to be the principal market or in absence of the principal market, the most advantageous market. If there is a principal market for the asset or liability, the fair value measurement represents the price on that market (whether that price is directly observable or estimated using another valuation technique), even if the price in a different market is potentially more advantageous at the measurement date.

IFRS 13 establishes the hierarchy of valuation models on the objectivity of the data used in these models (observable or non- observable data). The observable data are based on observable market data and derived from independent sources; unobservable inputs are referred to management assumptions. The Bank calculates the fair value of financial instruments based on the relevant framework which classifies financial assets into a three-level hierarchy based on the data used for their valuation, as described below: Level 1: Investments that are valued at fair value based on quoted (unadjusted) prices in active markets for comparable assets or liabilities. Level 2: Investments that are valued at fair value, using valuation techniques for which all inputs that significantly affect the fair value, are based (either directly or indirectly) on observable market data. Level 3: Investments that are valued at fair value, using valuation techniques, in which the data that significantly affects the fair value, is not based on observable market data.

2.6.4. Derecognition A financial asset is derecognized when the Bank loses control over the contractual rights contained in this item. This occurs when the rights expire or are transferred, and the Bank has transferred substantially all the risks and benefits of ownership. Financial liabilities are derecognized when the Bank's obligation to pay cash or other financial assets is extinguished.

2.6.5. Offsetting Financial assets and liabilities may be offset and the net amount may appear in the Statement of financial Position when there is a contractual right that allows offsetting the amounts recorded and, at the same time, there is an intention either to simultaneously settle the total amount of both - the financial asset and the obligation – or to settle the net amount obtained after offsetting.

2.6.6. Financial instruments modifications Financial assets If the terms of a financial asset are modified, then the Bank assesses whether the cash flows from the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to the cash flows from the initial financial asset are deemed to have expired. In this case, the initial financial asset is derecognised and a new financial asset is recognized at fair value plus potentially arising transaction costs. If the Company intends to modify a financial asset in a manner that would lead to a merger of cash flows, it first considers whether a part of the asset should be written off prior to the modification. This approach affects the outcome of the quantitative assessment and means that the write-off criteria are not usually met in such cases. If the modification of a financial asset measured at amortized cost or at fair value through other comprehensive income does not result in the write-off of the financial asset, the Company recalculates the gross carrying amount of the financial asset using the initial actual interest rate of the financial asset and recognizes the arising adjustment as a gain or loss adjustment in the income statement. Regarding floating rate financial assets, the initial effective interest rate used to calculate the adjusted profit or loss is adjusted to reflect the current market conditions at the time of the adjustment. The amended financial asset is depreciated over the remaining period of the amended financial asset. If such an adjustment is made, then the gain or loss is presented as interest income calculated using the effective interest method. When the terms of a financial asset are modified and the amendment does not result in write-off, determining whether the asset's credit risk has significantly increased reflects the comparison between:

- the remaining PD's lifetime at the reporting date under the amended terms, and - the remaining PD's lifetime calculated on the basis of the initial contractual terms.

When the amendment leads to write-off, a new loan is recognized and allocated to Stage 1 (assuming it is not impaired at that time).


Financial liabilities The Company writes off a financial liability when its terms are modified and the amended liability cash flows are substantially different. In this case, a new financial liability under the amended terms is recognized at fair value. The difference between the carrying amount of the unrecognized financial liability and the consideration paid is recognized in the income statement. The consideration paid includes non-financial assets that are transferred, if any, and undertaken liabilities, including the new amended financial liability. If the modification of a financial liability is not considered a write-off, then the amortized cost of the liability is recalculated by discounting the modified cash flows at the initial effective interest rate and the arising gain or loss is recognized in the income statement. Regarding financial liabilities at floating rate, the initial effective interest rate used to calculate the adjusted profit or loss is adjusted in order to reflect the current market conditions at the time of the adjustment. Potentially arising expenses and commissions are recognized as an adjustment to the carrying amount of the liability and are amortized over the remaining period of the amended financial liability by calculating the effective interest rate on the financial instrument. Modification of financial assets due to financial difficulties The Bank renegotiates loans to customers facing financial difficulties (forbearance activities) with the view to maximizing collection and minimizing the risk of default. Such forbearance is granted on a selective basis if the debtor is in default or if there is a high risk of default, if there is evidence that the debtor has made all the reasonable repayment efforts in accordance with the initial contractual terms and if the debtor is expected to meet the revised terms. Revised terms usually include extending the maturity, changing the interest payment time, and modifying the loan terms. Both - retail and corporate loans - are subject to a forbearance policy. If cash flows are modified when the borrower is in financial difficulty, then the purpose of the modification is usually to maximize the recovery of the initial contractual terms rather than create a new asset under substantially different terms. In case such an adjustment is performed due to financial difficulties of the borrower, then the gain or loss is presented together with the impairment losses. In respect of financial assets, modified as part of the Bank's forbearance policy, the PD’s estimate reflects whether the amendment has improved or restored the Bank's ability to raise interest and capital. As part of this procedure, the Bank evaluates the debtor's payment performance against the amended contractual terms and examines various conduct indicators.

2.7. Associates Associates are companies in which the Bank has significant influence but not control and holding of between 20% and 50 % of the voting rights. Investments in associates are initially recorded at cost and are consolidated using the equity method.

2.8. Investment property Property that is held for long-term lease and/or for capital appreciation are classified as investment property. Investment property is initially recognized at cost, including related transaction costs. After initial recognition, investment property is carried at fair value, as estimated by an appraiser. The fair value is based on market prices, adjusted, if necessary, depending on the nature, location and condition of the specific asset. Additionally, in accordance with IFRS 13, the fair value measurement should take into account the ability to create benefits from the maximum and optimal use of the asset or by selling it to a third party that will use these assets during maximal and optimal use. If the information on the fair values is not available, valuation methods are used. The fair value of investment property reflects income from current leases and assumptions about future leases, taking into account current market conditions. Fair values also reflect any outflows expected for the investment property. Subsequent costs are included in the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Bank and their cost can be measured reliably. All other repairs and maintenance costs are recognized in profit or loss during the year in which they incurred. For properties not appraised by appraisers, the fair value is determined based on methodology estimates from realized prices. Changes in fair value are recognized in the Statement of Comprehensive Income. If an investment property becomes owner-occupied (operational), it is reclassified as tangible assets and its fair value at the date of reclassification becomes its cost. The property being constructed or developed for future use as investment property is classified as tangible assets and recognized at cost until the construction or development, so it is reclassified and subsequently accounted for as investment property. The investment property held for sale without redevelopment is classified within non-current assets held for sale in accordance with IFRS 5.

2.9. Intangible assets Software licenses are valued at cost less depreciation. Depreciation is calculated using the straight-line method over the useful life of these assets, which is estimated at 10 years. Costs associated with software development


and maintenance are recognized as expenses when incurred. Costs associated with the development of specific software that is controlled by the Bank are recognized as intangible assets. Such costs include wages and salaries as well as an appropriate proportion of general overheads.

2.10. Property, plant and equipment Items of property, plant and equipment are measured as follows:

Land and buildings are measured at fair value, as determined by estimates of professional valuers, based on market data, in accordance with IAS 16.

Mechanical equipment, vehicles, computers, ATMs and other items are carried at cost less accumulated depreciation and potential impairment.

Fair value of the assets falling within the first category (a) of the first case or acquisition cost of the assets of the second category (b) includes all directly attributable costs for their acquisition. Fair value may also include gains or losses from hedging the foreign currency exchange rate risk arising under the acquisition of assets recorded in the equity reserves. Subsequent expenses are recognized as an increase in the fair value or acquisition cost respectively or as a separate asset only if it is probable that future economic benefits will flow to the Bank and their cost can be measured reliably. In accordance with IAS 23, borrowing costs are transferred to increase the cost of the related asset when the conditions of IAS 23 are met. Specifically, the requirements of IAS 23 state that: a) the cost of borrowing must be directly attributable to the acquisition, construction or production of an asset that requires significant preparation period for the use for which it is intended or for sale (qualifying asset) and b) borrowing costs will been avoided if the expenditure for the asset had not been made. Repairs and maintenance costs are charged to results when incurred. Land is not depreciated. Depreciation of other tangible assets is calculated using the straight-line method over their estimated useful lives, as follows:

As s et category Coeffic ient Us eful life

Improvements in leas ed real es tate property

Buildings - technical ins tallation 2.86% 35 yearsMechanical equipment 1 0.00% 1 0 yearsVehic les 20.00% 5 yearsComputers & Α.Τ.Μ. 20.00% 5 yearsOther equipment 1 0.00% 1 0 years

Leas e term or us eful life

The residual values and useful lives of tangible assets are reviewed at each Statement of Financial Position date. When the book value of tangible assets exceeds their recoverable value, the difference (impairment) is immediately recorded as an expense. Upon sale of tangible assets, the difference between the proceeds and the book value is recorded as profit or loss. Following the initial recognition, land plots and buildings whose fair value can be measured reliably are recorded at readjusted amount, which includes their fair value at the date of revaluation. Adjustments are made on regular basis, so that the book value should not significantly differ from the value that would be determined using the fair value at the date of the Statement of Financial Position. Frequency of adjustments depends on changes in the fair value of assets that are subject to revaluation. When the fair value of revalued land plots or buildings significantly differs from their book value, further readjustment is required. When a building is readjusted, its accumulated depreciation on the revaluation date is restated, depending on the change in the value of the asset prior to depreciation, so that its carrying amount after revaluation should equal the amount of the revalued asset. If the book value of a land plot or a building increases as a result of revaluation, the increase is credited directly to equity under the title “revaluation surplus”. However, a revaluation increase is recognized in profit or loss to the extent it reverses previous devaluation of the same asset previously recognized in profit or loss. If the book value of a land plot or a building decreases as a result of a revaluation, the decrease is recognized in profit or loss. However, the decrease will be charged directly to equity, to the revaluation surplus, to the extent there is a credit balance in the revaluation surplus in respect of the particular asset. Revaluation surpluses included in equity can be transferred directly to retained earnings when a land plot or a building is written off. This may involve the transfer of the entire surplus when a land plot or a building are withdrawn or disposed of. However, a part of the surplus may also be transferred during the use of the asset. In such a case, the amount of the surplus that may be carried forward comprises the difference between the readjusted book value and the cost based on the depreciation charge. Transfers from revaluation surpluses to retained earnings should not be conducted through gains or losses. The effects of taxes on income from potential revaluation of tangible assets are recognized and disclosed in accordance with IAS 12 "Income Taxes".


2.11. Impairment of non-financial assets

Fixed assets and other non-current assets are reviewed for possible impairment losses whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, the impairment loss is recognized in the income statement. The recoverable amount of an asset is the greater of either the net selling price or the value in use. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction in which participating parties have full knowledge and participate voluntarily, after deducting any additional direct disposal costs and value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. If it is not possible to estimate the recoverable amount of an asset for which there is evidence of impairment, then the recoverable amount of the unit generating cash flows to which the asset belongs is assessed. Reversal of any impairment losses for assets classified in previous years is possible only if there are sufficient indications that such impairment no longer exists or has decreased. In such cases, the reversal is recognized as income.

2.12. Income tax and deferred tax The annual income tax consists of current taxes and deferred taxes, i.e. the tax charges or credits which have been already assessed or will be assessed by the tax authorities in other years. Income tax is recognized in the income statement. Taxable profit differs usually from profit reported in profit or loss as it excludes taxable or deductible temporary differences and items which are permanent differences or tax exempted. Current taxes are determined in accordance with tax rates and tax laws applicable to the fiscal years to which they relate, based on taxable profit for the year. Deferred tax is calculated using the liability method on all taxable temporary differences at the balance sheet date between the tax base and the book value of assets and liabilities. The expected tax effects from the temporary tax differences are determined using tax rates expected to apply in the period of recovery of assets or/and settlement of liabilities. These appear either as future (deferred) tax liabilities or as deferred tax assets. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that there will be future taxable gains for the use of temporary difference that creates the deferred tax asset. Deferred tax is not recognized if it arises from initial recognition of an asset or liability in a transaction other than a business combination, which when it occurred did not affect neither accounting nor taxable result, whether profit or loss. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow recovery of the claim (as a whole or partly). Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and additionally the Bank intends to settle its current tax assets and liabilities on a net basis. Under the effective tax legislation (Article 27A, Law 4172/2013), deferred tax assets may be converted into final and liquidated asses by the Greek State in case of loss-bearing results (deferred tax asset not based on future profitability). Deferred taxes charge or improve the income statement. In exceptional cases, when they relate to items or transactions that are recorded directly in equity, in the same or a different period, they are recorded in a similar manner directly in equity.

2.13. Foreclosed assets Properties repossessed through an auction process to recover impaired loans are accounted for in accordance with the provisions of IAS 2 as inventory and valued at the lower of cost and net realizable value. The acquisition cost of property determined in accordance with the method of weighted average cost. Net realizable value is the estimated selling price less selling costs. Gains and losses arising from the sale of assets through auctions, are recognized in the income statement.

2.14. Other financial liabilities Other financial liabilities are initially recognized at fair value and subsequently are measured at amortized cost. They include liabilities to banks and liabilities to customers.

2.15. Debt securities in issue Liabilities from issuance of debt securities and other borrowed funds are recognized initially at fair value (income from their issue, minus the realized issue costs). After initial recognition, debt securities and borrowed funds are shown at amortized cost. Any difference between the income from the issuance (net of transaction costs) and the disbursement value is recognized in profit or loss over the duration of the securities using the effective interest method. Liabilities from securities and borrowed funds of the Bank also include senior subordinated loans.


2.16. Employee benefits IAS 19 distinguishes the post-employment benefits into defined benefits and defined contribution plans. The defined contribution plans is recorded as expense in each period and is equal to the amount paid by the employer. The accounting treatment of defined benefit plans involves an actuarial valuation, because the standard requires the cost to be allocated to each employee work period. The provisions of Law 2112/1920, as amended by Law 4093/2012, are classified as defined benefit for the purposes of IAS 19. The actuarial method used is the Projected Unit Credit Method. The amended IAS 19 also requires as follows: direct recognition of actuarial gains/losses in other comprehensive income and their final exemption from

the income statement, non-recognition of the expected returns on investment program in profit or loss but recognition of such

interest in the net liability/(asset) of the provision calculated based on the discount rate used to measure the defined benefit obligation,

recognition of past service cost in profit or loss at the earlier of the date of modification of the program or when the related restructuring is recognized or when the terminal payment occurs and

other changes including the new disclosures such as quantitative sensitivity analysis.

2.17. Equity Debt – equity classification: Financial instruments issued by the Bank in order to raise funds are classified as equity if, under the substance of the contract, the Bank does not enter into a contractual obligation to pay cash or any other financial asset or exchange financial assets under the terms that may be unfavorable to it. In the event that, in exchange for raised funds, the Bank is obliged to issue shares, the number of shares must be fixed and specified in the initial contract so that the initial liability should be recorded in equity. Share capital increase expenses: Direct expenses for the issue of shares appear, after the deduction of related income tax, reducing the effect of retained earnings. Share premium: This account comprises the difference between the nominal value of the shares issued and the price paid. Equity: Acquisition cost of equity shares is deducted from equity. Any gain or loss on the sale arising from disposal of equity shares, net of direct transaction costs and taxes, is recognized directly in the "Retained Earnings" account. Dividends: Dividends payable reduce the "Retained Earnings" account and are recorded as a liability when they are approved by the General Meeting of Shareholders.

2.18. Provisions for risks and charges Provisions are recognized when the Bank has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources to settle the obligation can be reliably estimated amount. The Bank recognizes a provision for onerous contract when the expected benefits to be derived from the contract are less than the unavoidable costs of obligations under the contract. Provisions are reviewed at each year end and adjusted to reflect the best possible estimations and when deemed necessary, they are discounted based on a pre–tax discount rate. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is minimal. Contingent assets are not recognized in the financial statements but disclosed when an inflow of financial debt is probable.

2.19. Leases The Bank implemented the provisions of IFRS 16 on 1 January 2019 selecting the amended retrospective application of IFRS 16 and therefore the comparative information was not adjusted. According to IFRS 16, on the date of commencement of the lease, the Bank, as a lessee, recognizes in the balance sheet the rights-of-us assets and liabilities from leases, which are initially measured at the present value of future leases. The Bank applied this initial measurement to all leases, excluding those with a lease period of 12 months or less, using the relevant exceptions for short-term leases and leases in which the underlying asset is of low value. Moreover, the Bank applies the exemption provided in the Standard and does not re-estimates whether an agreement is a lease at the date of first application of the Standard. In implementing the amended retrospective approach, the Bank used the following key estimates and assumptions:

In order to determine the lease term in which the Bank is the lessee, including indefinite leases, all relevant facts and conditions were considered, such as future housing needs and expected use, for which a judgment was taken. In addition, rights have been considered for the extension or termination of the lease, which is essentially certain to be exercised. These estimates will be reviewed on a regular basis during the lease term.


The present value of lease liabilities was measured on the basis of the estimated borrowing rate at the date of the transition (5.5%), as the lease rate could not be easily determined. It should be noted that the discount rate used to set lease liabilities will be remeasured on a regular basis, using up-to-date data.

Current taxes, VAT, and stamp duties were excluded from the IFRS 16 measurement scope. Accounting policy regarding leases when the Bank is a lessee: When the Bank becomes the lessee in a lease, it recognizes a lease liability and a corresponding right-of-use a leased asset at the beginning of the lease term, once it has gained control of the use of the asset. Lease liabilities and rights-of-use leased assets are clearly recorded in the statement of financial position. Lease liabilities are measured on the basis of the present value of future rentals payable during the lease period, which are discounted using an estimated interest. Interest - expenses on lease liabilities are recorded in the General Administrative Expenses and not in the Interest expenses. The right-of-use a leased asset is initially recognized in an amount equal to the lease liability and is adjusted for prepayments of rentals, initial direct costs or incentives received for the conclusion of leases. Subsequently, the right-of-use a leased asset is amortized during the lease or the useful life of the underlying asset, if it is lower, and the arising amortization is recorded in operating costs/amortization. When a lease contains an option to extend or terminate a lease that the Bank estimates will be exercised, the expected future payable rentals or the cost of early termination are included in the rentals payable used to calculate the lease liability. In the event of a change in future rent payments arising from a change in ratio or interest rate, extension or termination, the lease liabilities are revalued with the change being recognized through the right of use. Other changes are recognized through the results. The rights of use are presented within the item "Own-used tangible fixed assets" while the liabilities from leases appear separately in the statement of financial position. In the event of a change in future lease payments arising from a change in ratio or interest rate, extension or termination, the lease liabilities are re-estimated and the arising change is recognized through the right-of-use. Other changes are recognized through profit and loss. The rights-of-use are presented in the item "Own-used tangible fixed assets" while the liabilities from leases are recorded separately in the statement of financial position.

Accounting policy regarding leases when the Bank is a lessor: The Bank continues to recognize the underlying asset and does not recognize a net investment in the lease in the statement of financial position or initial profit (if any) in the statement of comprehensive income. The Bank recognizes rentals paid by lessees as proportional income during the lease. It also recognizes as an expense the costs incurred in obtaining lease income, including amortization.

2.20. Revenue recognition The revenue of the Bank mainly includes income from loans and interest-bearing securities, portfolio management commissions, letters of credit and other banking activities, income from dividends and other income. It is to be noted that the Bank has adopted IFRS 15 Revenue from Contracts with Customers, however, the implementation of the standard has not affected the financial statements. Revenue is recognized as follows:

i. Interest income and expenses: Interest income and expenses are reported on all interest-bearing Statement of Financial Position items are recognized on an accrual basis using the effective interest method based on calculating the purchase price. Interest income includes interest on fixed income securities and trading securities as well as accrued «premium/discount» governmental and quasi- debt and interest on loans/placements, while interest expenses refer to the deposits and financing of the Bank. In particular, the following issues apply regarding the financial assets:

- Regarding financial instruments classified in Stages 1 or 2, interest income is calculated by applying the effective interest rate to the carrying amount before the impairment of the financial asset.

- Regarding financial assets classified in Stage 3, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.

ii. Income and expenses from commissions: Commission income and expenses are recognized during the period in which the services are provided depending on the completion of the transaction so as to match the cost of providing the service, while those related to credit risk are recognized in the Statement of Comprehensive Income or loss on straight-line basis period of validity of the risk.

iii. Revenue from dividends and securities: Dividend income is recognized when the right to receive payment is established. Income from securities is recognized on disposal.


Potentially incurred expenses and other direct costs associated with financial instruments that are measured at amortized cost are deferred and recognized in income or interest expense over the life of the instrument using the effective interest method.

2.21. Earnings per share The Bank presents basic and diluted earnings per share. Basic earnings per share are calculated by dividing the profit attributable to the Bank's shareholders by the weighted average number of the shares outstanding during the period. Diluted earnings per share are determined by adjusting earnings attributable to shareholders and the weighted average turnover of shares for the effects of all contingent potential shares, which include a conditional share in case of optional or compulsory conversion of the convertible bond loans of the Bank.

2.22. Related party disclosures In accordance with IAS 24, a natural or legal person is related when it is linked to the entity that prepares financial statements. Two parties are considered related if one has the ability to control the other or have significant influence over it, in making financial and operating decisions. Specifically, related parties are: i. Companies directly or indirectly controlling or controlled by the Bank. ii. Associated companies in which the Bank has significant influence and are not subsidiaries. iii. Individuals and their close relatives, who directly or indirectly, of voting rights in the Bank, which give them significant influence over the Bank. iv. Managers of the Bank, members of management and closely related to those persons. v. Companies belonging to members of the management or major shareholders of the Bank and enterprises that have common directors with the Bank.

2.23. Reporting segments Under IFRS 8, operating segments are specified as those which are addressed internally by the Management as significant in assessing segment performance and risk and allocation of available resources. Currently, the Management monitors risks and returns from banking and financial products aggregated. Therefore, it has not unbundled separate business segments as it manages its operations as a total.

3. Significant accounting policies, estimates and judgments The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) Requires management to make subjective judgments, estimates and assumptions by management that affect the reported amount of assets and liabilities, and the amount of revenue and expenses in consolidated and individual financial statements and the notes which are an integral part. The Bank's management believes that the judgments, estimates and assumptions used in preparing the financial statements are appropriate given the factual circumstances as of December 31 of the reporting financial year. Many of the policies adopted by the Bank, by their nature, require the use of estimates, valuation assumptions and other subjective assessments. Specifically, the Bank has reviewed certain accounting principles as important for understanding financial statements, due to both subjective judgments, estimates and assumptions involved, and the sensitivity of the financial statements to them. Effects of COVID-19 pandemic COVID-19 pandemic has significantly affected the assumptions used by the Bank, thus increasing the uncertainty of the Management's estimates and/or giving rise to new additional crises and accounting estimates regarding the economic recovery period and the impact this uncertainty might have on the future results of the Bank.

3.1. Measurement of expected credit losses Measurement of expected credit losses requires the management to exercise a high degree of judgment. The required estimates are based on a number of factors that can cause changes in the time of recognition of losses as well as in the amount of recognized impairment. Calculation of expected credit losses is based on complex models, which depend on a number of assumptions regarding selection of model variables and the interdependencies generated by them. Management makes significant estimates and assumptions in respect of the following matters of expected credit losses:

Significant Increase in Credit Risk: Given that IFRS 9 does not provide a definition of what constitutes a significant increase in credit risk (SICR), the assessment of the deviation from initial recognition is based on sufficiently well-documented qualitative and quantitative data pertaining to the future conditions, which, however, also involve a degree of the Management’s judgment

Development of Expected Credit Loss Models: For the purpose of measuring the expected credit losses, the Bank configures the applicable model in compliance with the latest data. Calculations of the expected credit loss are based on a set of parameters, such as EAD, PD, LGD, etc., which incorporate opinions and assumptions of the Management regarding the future conditions. In order to develop the models, the B is also required to determine the correlation between macroeconomic and financial data, while the developed models


may incorporate variables such as levels of unemployment, GDP, etc. in an attempt to facilitate getting a more accurate result. The Bank classifies its exposures based on their common credit risk characteristics in respect of assessing significant credit risk increase in line with measuring the provision for impairment of loans on a collective basis. Different categories are designed in order to capture PDs and default rates in case of default. The described grouping is reviewed on a regular basis in order to ensure homogeneity of the credit risk characteristics among the individual categories. Significant estimates Covid-19 pandemic facilitation measures and government guarantees: The Bank implemented the following accounting treatment regarding the facilitation measures carried out in the context of the pandemic and the state guarantees: Facilitation measures were treated as an amendment to the terms of existing contracts without leading to terming the recognition of the initial loans.

Facilitation measures were not automatically considered as measures of forbearances or that lead to default.

The estimate of the recovery rate of the regular loan service (cure rate) for customers that has been settled within the framework of the facilitation measures has not changed, for as long as the facilitation measures are effective.

Government guarantees were considered an integral part of the loan agreements and were taken into account when calculating the expected credit risk losses of the loans. 3.2. Recoverability of deferred taxes

Deferred tax is regulated by IAS 12 Income taxes. Deferred taxes are calculated using the liability method for all temporary differences arising from the tax base of assets and liabilities and the respective book value. The essential temporary differences mainly relate to provisions for credit risk, the impairment of Greek Government Bonds, the loss from the application of Government Bond exchange program (+PSI) and deferred tax assets from deductible tax losses (+PSI) under par. 3, Article 27, Law 4172/2013 from write-off of loans. Based on the Business Plan of the Bank deferred tax seems totally recoverable but the management estimates on the future development of tax results of the Bank incorporate multiple assumptions and hypotheses some of them are not controlled by the Bank itself (economic environment, providing liquidity, withdrawals, etc.). Under Article 27A, Law 4172/2013, the Bank can convert the deferred tax assets on certain temporary differences into final and liquidated receivables against the Greek State (D.T.C.). Following the decisions of the Extraordinary General Meeting of the partners, held in March 2016, the Bank has been placed under the special regime of Article 27A, Law 4172/2013, as effective. The new Law 4465/2017, published on April 4, 2017, introduces amendments to articles 27 and 27A of Law 4172/2013. In particular, Article 27 makes provisions for a 20-year amortization (transfer) period for losses arising from loan write-offs, while the provisions of Article 27A state that, in addition to the deferred tax asset that relates to the amount of accumulated provisions and other credit risk losses and to the residual (unamortized) debit balance of PSI, the deferred tax asset that relates to accounting write-offs and permanent losses due to the permanent write-off or transfer of loans may, under certain conditions, be transferred to final receivables from the State. Additions to paragraph 2, Article 27A do not entail an increase in deferred tax assets as the paragraph makes explicit provisions for restricting the amount of tax attributable to temporary differences from accumulated provisions and other credit risk losses as at 30 June 2015. The aforementioned amount does not include the following: (a) potential amount of final and liquidated receivables arising from accounting losses for the year in accordance with the provisions of Article 27A; (b) the amount of tax attributable to any subsequent specific tax provisions relating to the above accumulated provisions; and (c) the amount of the tax corresponding to annual depreciation of the debit difference under case a, par. 3, Article 27. The tax rate for the calculation of D.T.A. under Article 27A shall not exceed the tax rate applicable for the tax year 2015. As far as the Bank is concerned, the amount of deferred tax assets that can be converted to final asset stands at approximately € 45.1 million. The amount regards the corresponding tax, 29%, over the temporary differences of accumulated provisions for credit risk, as accounted for on 30 June 2015. Recognition of deferred tax assets (D.T.A.) and their potential conversion to DTC could be adversely affected by: (a) future reduction in income tax rates; and (b) adverse change in legal and regulatory Framework governing the treatment of deferred tax assets in regulatory capital.

3.3. Real estate items fair value definition Owner-occupied real estate items and investment property are periodically measured at fair value, as determined by independent certified valuers. Fair value is determined by market prices or adjusted if necessary, depending on the nature, location and condition of the property.


4. Risk Factors 4.1. Risk management framework

The Bank has established a Risk Management Framework & Strategy which is a holistic approach to risk management and includes policies, procedures, controls and systems through which undertaking risk is established, disclosed and monitored. It includes statements regarding the willingness to undertake risks, the limits of undertaking as well as the description of the roles and responsibilities of those, supervising its implementation and monitoring. The Framework is reviewed on an annual basis ensuring the implementation of the business strategy within the desired risk-undertaking framework.

4.2. Risk management structure and organization Internal Control System (ICS) is a complex of control mechanisms and procedures that covers on a continuous basis every activity of the Bank and contributes to its efficient and safe operation. It is part of the Bank's Risk Management Framework & Strategy and is organized in four defense lines. The ICS identifies the responsibilities and duties in respect of undertaking, assessing, managing and controlling risks at different defense levels.

The 1st defense line consists of the branches and the exchange units. It is in these units, which bear the respective responsibility, that the initial risk undertaking is performed. These units recognize and manage the risks they undertake in the context of their business operations and shall function according to the policies and procedures established by the Bank.

The 2nd defense line includes the central services and committees which are responsible for making decisions and operate supportively to the units of the 1st defense line. The units of the 2nd defense line are responsible for controlling the units of the 1st defense line under everyday implementation of their business objectives in view of the specific risk undertaking framework, again, according to the policies and procedures established by the Bank.

The 3rd defense line pertains to Risk Management Division, which is responsible for: Development of the risk management framework and submitting recommendations for the Risk

Management Committee and, thereafter, approval to the Board of Directors of the Bank. Recognition, measurement and monitoring of the undertaken risks. Support of all the units of the Bank in risk management matters. Monitoring risk undertaking limits established by the Board of Directors. Development of an early risk detection mechanism. Updating the Risk Management Committee and the Board of Directors on risk management matters.

The Regulatory Compliance Division belongs to the 3rd defense line and is responsible for supporting and updating all units of the Bank on regulatory compliance matters. It submits proposals to the Board of Directors on measures to be taken to ensure compliance with applicable legislation, regulations and standards. It evaluates the effects that may arise from potential changes to the legal or regulatory framework to business activities and informs respectively the BoD, the CEO and the senior management. The 4th defense line comprises the Internal Audit Department which, through the audit procedures, assists in ensuring the implementation of the Bank’s business policy under the approved risk management framework, policies and procedures. The Internal Audit reviews effectiveness and efficiency of applications and procedures that cover the entire range of the Bank’s operations. Findings and proposals of the Internal Audit Department are reported to the Audit Committee so that it could evaluate the matters and the appropriate corrective measures could be taken by the Board of Directors of the Bank.

4.3. Risks related to Greek economy During 2020, economic activity drastically decreased due to the COVID-19 pandemic. Both domestic and external demand significantly declined, as a result of the decreasing domestic household incomes and consumption, and the general deterioration of the international environment in line with curtailment of corporate investment activities. The adverse health profile was still effective in the first quarter of the year 2021, combined with the prevailing uncertainty regarding the restart of the Greek and the world economy, thus undoubtedly affecting the short-term growth prospects and temporarily posing major obstacles along the path to normalcy. The aforementioned facts, accompanied by the assessment that the effects of the pandemic on the banking sector are expected to intensify in 2021 due to the increased flow of non-performing loans, compose an adverse environment regarding the banking system in general. Therefore, as highlighted in the annual report of the Governor of the Bank of Greece, banks should review the adequacy of their credit risk provisions and might be obliged to take additional steps to facilitate front-loaded recognition of credit losses due to the pandemic, as well as to facilitate their balance sheets in line with addressing the issue of deferred tax assets through systemic solutions such as those disclosed in the relevant European Commission Announcement as of 16 December 2020.


4.4. Financial risks 4.4.1. Credit risk

Credit risk is the risk of financial loss that may result from the possible breach of the contractual obligations of borrowers. A borrower is considered as «default» when one or both of the following events occur: The credit institution becomes reasonably certain that the borrower is unlikely to fulfill its payment

obligations, unless the institution takes measures such as liquidation of collateral.. The borrower delays any of contractual repayments past due 90 days. Measurement and monitoring of credit risk is a top priority for the Risk Management Division as it is the major cause of financial loss for the Bank. The total exposure to credit risk arises mainly from the corporate and individual credit loans, as well as from letters of guarantee. Credit Risk evaluation includes: Credit rating of the Bank's borrowers as well as potential clients. Estimation of specific impairment provisions in accordance with International Financial Reporting

Standards (IFRS). Estimation of risk-weighted exposures and capital requirements versus credit risk under Pillar I of Basel III. Estimation of intrinsic capital under Pillar II of Basel III. Estimation of the effect of stress tests.

In order to manage credit risk more effectively, the Bank applies the following policies: Define withdrawal limits under approving loans Interest rate policy based on the undertaken risk Define limits and customer acceptance criteria Periodic upgrade or degradation of borrowers Periodic review of criteria that classify borrowers into permanent delay Determination of haircut of acceptable collateral Examination of collateral impairment rates and valuation of financial collateral (bonds shares) Monitor specific funding and large financing exposures In determining the criteria for regulating / restructuring non-performing exposures

Credit risk originates mainly from exposures to small and medium-sized enterprises (hereinafter referred to as SMEs) and natural persons. The creditworthiness of the Bank’s clients has worsened given the adverse changes in the economic environment occurred. As a result of the long recession, asset quality has deteriorated in recent years hence the Bank has increased the impairment provisions for credit risk, which now amount to 21,81% of total loans.

Through the application of the credit limit system, the Bank manages and limits the volume of credit risk. Credit limits determine the maximum acceptable risk undertaking versus exposures. For the purposes of determining the clients’ limits, collaterals or coverage are taken into consideration, which reduce the volume of undertaken risk, classifying the exposures risk into risk categories, depending on the type of collateral or coverage and the possibility of their capitalization. For the purposes of approving the credits, approving bodies have been established depending on the amount of the exposure.

Risk reduction techniques: The Bank obtains collateral and guarantees against credit to customers, minimizing the overall credit risk and ensuring the repayment of loans. For this purpose, the Bank incorporates the collateral policy, whose most important items are: Greek State Guarantees Pledges over deposits Mortgages/real estate mortgages Mortgages ships Bank guarantee letters Guarantees of Guarantee Fund for Small and Very Small Enterprises Pledges on checks Pledges on shares, bonds and treasury bill Contractual guarantees

Collateral valuation process: The valuation of the collateral takes place at regular intervals as required by the institutional framework. Performing loans: Monitoring loans of temporary delay shorter than 90 days. Claims are considered in default when indications of impairment emerge. Bad Debts: Non-performing loans which the Bank determines that it is unlikely to collect part or all of principal and interest due, in accordance with contractual terms.

Provisions for impairment of loans to borrowers: Are conducted when there are indications that the collection of amounts due becomes doubtful. A claim is considered as impaired when the carrying value exceeds the expected recoverable amount. Evidence that a loan is impaired are as follows:


A breach of contract. Significant financial difficulty of the borrower. The bankruptcy of the borrower becomes likely. Indications of a reduction in future collections in particular loan groups due to sector problems or due to

the economic conditions in a specific group of loans.

The Bank writes-off loans when they are deemed uncollectible. In case of a claim collection after write-off, this is recognized in the income statement. The Bank has adopted a Projections and Write-offs Policy, which define the amount of projections and write-offs both for the clients who are evaluated on an individual basis and for the portfolios which are examined on a collective basis. Debt settlements apply where the client is financially unable to service the loan in accordance with the original terms of his/her loan agreement. Following the assessment of these difficulties, the Bank modifies the terms of the contract, offering long-term, short-term or final settlement solutions to enable the borrower to service the loan, either in whole or in part. The maximum exposure to credit risk as at 31.12.2020 and 31.12.2019 respectively is as follows: Total Expos ure to Credit R is k 31 .1 2.2020 31 .1 2.201 9

Credit R is k of Expos ures related to B alance S heet Item s Cas h available with Central Banks 1 54,675,1 90 31 4,992,636

Due from credit ins titutions 36,027,683 7,974,249Financial ins truments at fair value through profit or los s 4,268,844 1 6,953,301

Loans and other trade receivables 1 ,229,926,444 1 ,1 45,027,979P ortfolio held until expiration 532,557,855 -

Total value of B alance S heet items regarding the items s ubject to credit ris k (s )

1 ,957,456,01 6 1 ,484,948,1 64

Other Balance S heet items not s ubject to credit ris k 1 77,002,345 1 71 ,946,1 88Total As s ets 2,1 34,458,361 1 ,656,894,352

Credit r is k of Expos ures related to Non-B alance S heet item s :Letters of guarantee, credits under collaterals and other guarantees 72,552,41 6 79,497,384

Total value of Off-B alance S heet Items s ubject to credit ris k (b) 72,552,41 6 79,497,384

Total value of Expos ures s ubject to credit r is k (a+b) 2,030,008,432 1 ,564,445,549 COVID-19 effect: COVID-19 pandemic has significantly affected the level of credit risk and its management methods. Measures to support customers affected by the pandemic In order to deal with the increasing credit risk, the Bank implemented a series of support measures in the form of suspension of payments. The implementation of payment suspensions was also fully in line with the European Banking Authority (EBA) guidelines and the specific conditions that had to be met and were not considered regulated exposures. Other credit risk hedging programs used by the Bank relate to the following: Individuals:

- Gradual Adjustment of Mortgage & Consumer Loans Plan for Individuals - Gradual Adjustment of Capital Installments of Business Loans for Individual Corporates & Freelancers

Plan - The Greek State "Bridge"plan

Corporates: - Loans for Employment and Social Innovation (EaSI) - COVID-19 in Cooperation with the European

Investment Fund (EIF) - New working capital loans with the guarantee of the Covid-19 Guarantee Fund of the Hellenic

Development Bank - Working Capital with interest rate subsidy of Action Business Financing - TEPIX II - Subprogram 4

Based on the above, the structure of loans per type and condition is as follows:


Cov id Products Allocation / Μoratorium

Total B alance Total

Prov is ions

Moratorium 1 71 ,81 6 2,632 Loans under Government guarantee 33,1 38 651

Amounts in thous and euro

31 -Dec-20

Moratorium allocation per portforlio


Prov is ions

Moratorium 1 71 ,81 6 2,632 Corporate 1 61 ,21 2 2,409 Cons umer 2,042 1 1 5 Mortgage 8,562 1 08


31 -Dec-20

Moratorium allocation per s tatement


Prov is ions

Moratorium 1 71 ,81 6 2,632 Expired 1 59,552 2,357 Not expired 1 2,265 275


31 -Dec-20

Cov id Products Allocation / Μoratorium per s tage


Prov is ions

Moratorium 1 71 ,81 6 2,632 S tage 1 1 27,406 424 S tage 2 36,41 6 1 ,534 S tage 3 7,995 673

Loans with Government guarantees 33,1 38 651 S tage 1 32,426 604 S tage 2 71 1 47

Total 204,954 3,283


31 -Dec-20

Μoratorium allocation per s tage and per portfolio


Prov is ions

Moratorium 1 71 ,81 6 2,632 S tage 1 1 27,406 424

Corporate 1 21 ,577 420 Cons umer 821 1 Mortgage 5,007 3

S tage 2 36,41 6 1 ,534 Corporate 32,1 87 1 ,370 Cons umer 1 ,1 03 1 03 Mortgage 3,1 25 62

S tage 3 7,995 673 Corporate 7,448 61 8 Cons umer 1 1 7 1 1 Mortgage 429 44


31 -Dec-20


Μoratorium allocation per s tage and per s tatement


Prov is ions

Moratorium 1 71 ,81 6 2,632 S tage 1 1 27,406 424

Expired 1 24,939 406 Not expired 2,467 1 9

S tage 2 36,41 6 1 ,534 Expired 26,630 1 ,283 Not expired 9,785 251

S tage 3 7,995 673 Expired 7,983 668 Not expired 1 2 5


31 -Dec-20


A. Credit Risk / Loans & other receivables Analysis of loan portfolio by type and maturity delays: The following tables present the loans measured at amortized cost in accordance with IFRS 9 per Stage, as at 31 December 2020 and 31 December 2019 respectively.

31 -Dec-20

Am ounts in thous and €Loans prior impairment

ECLNet value after

impairmentLoans prior impairment

ECLNet value after


ECLNet value after


ECLNet value after

impairment

R etail Portfolio 1 79,070 1 ,428 1 77,642 75,042 7,438 67,604 466,586 1 46,242 320,344 720,698 1 55,1 08 565,590

Of which: Mortgage 34,31 5 1 8 34,297 1 7,81 5 371 1 7,444 83,1 73 1 1 ,392 71 ,781 1 35,303 1 1 ,781 1 23,521 Cons umer 1 1 ,349 41 1 1 ,308 7,671 706 6,965 59,1 88 1 7,837 41 ,350 78,207 1 8,584 59,623 Corporate 1 33,406 1 ,369 1 32,037 49,556 6,361 43,1 95 324,226 1 1 7,01 2 207,21 3 507,1 88 1 24,742 382,445Corporate (Non-R etail) Portfolio 263,430 2,036 261 ,394 81 ,1 93 6,534 74,659 507,600 1 79,31 7 328,284 852,223 1 87,886 664,337Total 442,500 3,464 439,036 1 56,235 1 3,972 1 42,263 974,1 86 325,558 648,628 1 ,572,921 342,995 1 ,229,926

S tage 3 Total loans and trade receivables at amortized cos t S tage 1 S tage 2

Am ounts in thous and €Loans prior impairment

ECLNet value after


ECLNet value after


ECLNet value after


ECLNet value after

impairment

R etail Portfolio 1 56,253 1 ,41 9 1 54,834 91 ,662 1 0,039 81 ,623 455,946 1 40,51 1 31 5,435 703,860 1 51 ,968 551 ,892 Of which: Mortgage 32,783 65 32,71 8 24,296 925 23,372 82,1 28 1 1 ,942 70,1 86 1 39,208 1 2,932 1 26,276 Cons umer 1 2,579 81 1 2,499 1 0,1 89 1 ,289 8,899 56,868 1 7,438 39,431 79,636 1 8,808 60,828 Corporate 1 1 0,890 1 ,272 1 09,61 8 57,1 77 7,825 49,352 31 6,949 1 1 1 ,1 32 205,81 8 485,01 7 1 20,229 364,788Corporate (Non-R etail) Portfolio 207,291 2,591 204,700 88,086 6,461 81 ,625 485,788 1 78,977 306,81 1 781 ,1 65 1 88,029 593,1 36Total 363,544 4,01 0 359,534 1 79,747 1 6,500 1 63,248 941 ,734 31 9,488 622,246 1 ,485,025 339,997 1 ,1 45,028


Non-de laye d De laye d

S tage 1Mortgage 26,441 7,874 34,31 5 1 8 34,297 33,1 44 Cons umer 1 0,341 1 ,008 1 1 ,349 41 1 1 ,308 6,206 Corporate and P ublic s ector 367,005 29,831 396,836 3,406 393,430 296,772 Total 403,787 38,71 3 442,500 3,465 439,035 336,1 22

S tage 2Mortgage 7,232 1 0,583 1 7,81 5 371 1 7,444 1 6,982 Cons umer 3,070 4,601 7,671 706 6,965 5,539 Corporate and P ublic s ector 84,524 46,224 1 30,748 1 2,895 1 1 7,854 1 04,420 Total 94,826 61 ,408 1 56,235 1 3,972 1 42,263 1 26,940

S tage 3Mortgage 3,360 79,81 3 83,1 73 1 1 ,392 71 ,781 72,1 59 Cons umer 1 ,780 57,408 59,1 88 1 7,837 41 ,351 34,321 Corporate and P ublic s ector 95,1 1 0 736,71 6 831 ,826 296,329 535,497 51 8,542 Total 1 00,249 873,937 974,1 86 325,558 648,628 625,022

General totalMortgage 37,033 98,270 1 35,303 1 1 ,782 1 23,521 1 22,285 Cons umer 1 5,1 91 63,01 6 78,208 1 8,584 59,624 46,066 Corporate and P ublic s ector 546,639 81 2,772 1 ,359,41 1 31 2,629 1 ,046,781 91 9,734 Total 598,863 974,058 1 ,572,921 342,995 1 ,229,926 1 ,088,084

Loans and receivables per s tateB alance as at 31 .1 2.2020(am ounts in thous and €)

Loans and re c e iv able s pe r s tage Total v alu e

afte r prov is ions for impairme nt

Total v alu e be fore

prov is ions for impairme nt

Total prov is ions for

impairme nt

Valu e of c o llate rals

Non-de laye d De laye d

S tage 1Mortgage 27,571 5,21 3 32,783 65 32,71 8 31 ,843 Cons umer 1 1 ,1 09 1 ,470 1 2,579 80 1 2,499 6,907 Corporate and P ublic s ector 276,062 42,1 20 31 8,1 82 3,863 31 4,31 8 255,920 Total 31 4,742 48,802 363,544 4,009 359,535 294,670

S tage 2Mortgage 4,790 1 9,506 24,296 925 23,372 23,1 40 Cons umer 2,753 7,436 1 0,1 89 1 ,290 8,899 7,236 Corporate and P ublic s ector 72,385 72,878 1 45,263 1 4,285 1 30,977 1 1 8,070 Total 79,927 99,820 1 79,747 1 6,500 1 63,248 1 48,446

S tage 3Mortgage 8,336 73,792 82,1 28 1 1 ,942 70,1 86 70,1 59 Cons umer 2,892 53,977 56,868 1 7,438 39,431 32,646 Corporate and P ublic s ector 1 01 ,076 701 ,661 802,737 290,1 08 51 2,629 505,1 1 8 Total 1 1 2,304 829,430 941 ,734 31 9,489 622,246 607,923

General totalMortgage 40,697 98,51 1 1 39,208 1 2,932 1 26,275 1 25,1 42 Cons umer 1 6,754 62,882 79,636 1 8,808 60,828 46,789 Corporate and P ublic s ector 449,523 81 6,659 1 ,266,1 82 308,257 957,924 879,1 07 Total 506,973 978,052 1 ,485,025 339,997 1 ,1 45,028 1 ,051 ,038

Valu e of c o llate rals

Loans and receivables per s tateB alance as at 31 .1 2.201 9(am ounts in thous and €)

Loans and re c e iv able s pe r s tage

Total v alu e be fore

prov is ions for impairme nt

Total prov is ions for

impairme nt

Total v alu e afte r prov is ions for impairme nt

S tage 1 S tage 2 S tage 3 S tage 1 S tage 2 S tage 3 S tage 1 S tage 2 S tage 3

Current 26,441 7,232 3,360 1 0,341 3,070 1 ,780 367,005 84,524 95,1 1 0 1 -30 s ays [1 -30 dpd] 7,874 2,229 1 ,436 1 ,008 1 ,802 543 29,831 22,1 81 7,491 31 -60 days [31 -60 dpd] - 3,674 275 - 1 ,601 1 44 - 1 2,441 8,937 61 -90 days [61 -90 dpd] - 4,681 0 - 1 ,1 98 23 - 1 1 ,602 9,533 91 -1 80 days [91 -1 80 dpd] - - 4,676 - - 980 - - 1 6,392 1 81 -360 days [1 81 -360 dpd] - - 6,653 - - 2,783 - - 35,859 361 -720 days [361 -720 dpd] - - 1 4,968 - - 9,51 9 - - 224,404 721 + days [721 + dpd] - - 24,768 - - 23,823 - - 96,646 F. Denounced Loans - - 27,038 - - 1 9,592 - - 337,454 Total value before prov is ions 34,31 5 1 7,81 5 83,1 73 1 1 ,349 7,671 59,1 88 396,836 1 30,748 831 ,826 Value of collaterals 33,1 44 1 6,982 72,1 59 6,206 5,539 34,321 296,772 1 04,420 51 8,542 Total prov is ions for impairment 1 8 371 1 1 ,392 41 706 1 7,837 3,406 1 2,895 296,329 Total value after prov is ions 34,297 1 7,444 71 ,781 1 1 ,308 6,965 41 ,351 393,430 1 1 7,854 535,497

Mortgage Concumer CorporateMaturity analys is of loans and other trade receivables per loan category | 31 .1 2.2020(am ounts in thous and €)


S tage 1 S tage 2 S tage 3 S tage 1 S tage 2 S tage 3 S tage 1 S tage 2 S tage 3

Current 27,571 4,790 8,336 1 1 ,1 09 2,753 2,892 276,062 72,385 1 01 ,076 1 -30 s ays [1 -30 dpd] 5,21 3 4,71 1 2,21 0 1 ,470 2,530 3,035 42,1 20 36,583 57,907 31 -60 days [31 -60 dpd] - 5,421 937 - 2,360 297 - 23,472 44,437 61 -90 days [61 -90 dpd] - 9,374 1 ,833 - 2,546 851 - 1 2,823 27,804 91 -1 80 days [91 -1 80 dpd] - - 3,749 - - 2,354 - - 1 9,377 1 81 -360 days [1 81 -360 dpd] - - 1 2,389 - - 3,540 - - 1 60,328 361 -720 days [361 -720 dpd] - - 6,801 - - 2,742 - - 1 1 ,730 721 + days [721 + dpd] - - 1 9,231 - - 21 ,593 - - 81 ,41 8 F. Denounced Loans - - 26,641 - - 1 9,565 - - 298,660 Total value before prov is ions 32,783 24,296 82,1 28 1 2,579 1 0,1 89 56,868 31 8,1 82 1 45,263 802,737 Value of collaterals 31 ,843 23,1 40 70,1 59 6,907 7,236 32,646 255,920 1 1 8,070 505,1 1 8 Total prov is ions for impairment 65 925 1 1 ,942 80 1 ,290 1 7,438 3,863 1 4,285 290,1 08 Total value after prov is ions 32,71 8 23,372 70,1 86 1 2,499 8,899 39,431 31 4,31 8 1 30,977 51 2,629

CorporateMaturity analys is of loans and other trade receivables per loan category | 31 .1 2.201 9(am ounts in thous and €)

Mortgage Concumer

31 .1 2.2020 31 .1 2.201 9

< 50% 59,530 59,31 1 50% - 70% 21 ,035 23,321 71 % - 80% 1 0,427 1 0,485 81 % - 90% 7,803 7,999 91 % - 1 00% 8,998 7,31 4 1 01 % - 1 20% 7,686 9,946 1 21 % - 1 50% 6,859 7,674 > 1 50% 1 2,965 1 3,1 57 Total 1 35,303 1 39,208 Average ratio 69.57% 69.95%

Loan ratio to value of collateral in real es tate(am ounts in thous and €)

Mortgage loans :

Collaterals analysis:

R eal Es tate collaterals

Cas h & Guarantee of public s ector

Other collaterals

R etail 1 64,325 3,952 262 Corporate 808,205 29,1 54 1 05,885 P ublic s ector 2,233 - 3,000 Total 974,763 33,1 06 1 09,1 47

Analys is of collaterals and guarantees received as at 31 .1 2.2020(amounts in thous and €)

Value of collaterals

R eal Es tate collaterals

Cas h & Guarantee of public s ector

Other collaterals

R etail 1 68,21 2 3,646 73 Corporate 781 ,1 54 1 1 ,080 82,269 P ublic s ector 2,469 - 2,1 34 Total 951 ,836 1 4,726 84,476

Value of collateralsAnalys is of collaterals and guarantees received as at 31 .1 2.201 9(amounts in thous and €)


Total S tage 1 S tage 2 S tage 3 Total S tage 1 S tage 2 S tage 3 Total S tage 1 S tage 2 S tage 3

R etail 21 3,51 1 45,664 25,486 1 42,361 30,365 59 1 ,077 29,229 1 83,1 45 45,605 24,409 1 1 3,1 31 Mortgage 1 35,303 34,31 5 1 7,81 5 83,1 73 1 1 ,782 1 8 371 1 1 ,392 1 23,521 34,297 1 7,444 71 ,781 Cons umer 78,208 1 1 ,349 7,671 59,1 88 1 8,584 41 706 1 7,837 59,624 1 1 ,308 6,965 41 ,351 Credit cards - - - - - - - - - - - - Other - - - - - - - - - - - -

Corporate / S MEs 1 ,346,787 388,028 1 27,448 831 ,31 0 31 1 ,982 3,1 74 1 2,670 296,1 38 1 ,034,805 384,855 1 1 4,778 535,1 72 Wholes ale and retail 365,646 93,732 25,741 246,1 73 95,695 932 3,254 91 ,509 269,951 92,799 22,488 1 54,663 S ervices and Freelancers 29,429 8,454 5,352 1 5,624 6,399 1 07 752 5,539 23,031 8,346 4,600 1 0,084 Indus try 252,571 49,1 37 1 8,220 1 85,21 4 73,732 500 2,305 70,927 1 78,839 48,637 1 5,91 4 1 1 4,288 S hipping 7,864 2,1 57 3,867 1 ,840 449 1 1 75 363 7,41 5 2,1 46 3,792 1 ,477 Cons truction 208,261 1 7,987 4,677 1 85,597 69,954 200 433 69,320 1 38,307 1 7,787 4,243 1 1 6,277 Touris m 292,636 1 65,425 55,701 71 ,51 1 1 7,670 764 4,271 1 2,635 274,966 1 64,661 51 ,429 58,876 Energy 31 ,61 8 25,1 95 2,274 4,1 50 2,1 90 426 509 1 ,255 29,428 24,768 1 ,765 2,895 Agriculture 36,730 3,953 2,680 30,097 8,953 1 8 368 8,567 27,778 3,935 2,31 2 21 ,531 Food 36,820 5,543 1 ,380 29,898 1 1 ,042 32 1 53 1 0,858 25,778 5,51 1 1 ,227 1 9,040 Other 85,21 1 1 6,447 7,558 61 ,207 25,899 1 83 550 25,1 65 59,31 2 1 6,264 7,007 36,041

Public s ector 1 2,624 8,808 3,300 51 6 647 232 225 1 91 1 1 ,976 8,576 3,075 325 Greece 1 2,624 8,808 3,300 51 6 647 232 225 1 91 1 1 ,976 8,576 3,075 325 Other countries - - - - - - - - - - - -

Total 1 ,572,921 442,500 1 56,235 974,1 86 342,995 3,465 1 3,972 325,558 1 ,229,926 439,035 1 42,263 648,628

Total L&R after prov is ions

Greece

Loans and other trade receivables , impaired loans and prov is ions for impairment, per loan category, s ector and geographical region B alance as at 31 .1 2.2020(am ounts in thous and €)

Total loans and other receivables before prov is ion Total prov is ions for impairment


Total S tage 1 S tage 2 S tage 3 Total S tage 1 S tage 2 S tage 3 Total S tage 1 S tage 2 S tage 3

R etail 21 8,844 45,362 34,485 1 38,997 31 ,740 1 46 2,21 4 29,380 1 87,1 04 45,21 6 32,271 1 09,61 7 Mortgage 1 39,208 32,783 24,296 82,1 28 1 2,932 65 925 1 1 ,942 1 26,275 32,71 8 23,372 70,1 86 Cons umer 79,636 1 2,579 1 0,1 89 56,868 1 8,808 80 1 ,290 1 7,438 60,828 1 2,499 8,899 39,431 Credit cards - - - - - - - - - - - - Other - - - - - - - - - - - -

Corporate / S MEs 1 ,250,675 307,465 1 41 ,338 801 ,872 307,204 3,684 1 3,802 289,71 9 943,471 303,781 1 27,537 51 2,1 53 Wholes ale and retail 331 ,376 64,975 27,637 238,764 90,898 1 ,026 3,700 86,1 73 240,477 63,949 23,937 1 52,591 S ervices and Freelancers 29,721 8,003 5,623 1 6,095 7,1 01 74 831 6,1 96 22,620 7,929 4,792 9,900 Indus try 248,91 1 46,857 22,560 1 79,495 72,31 8 426 2,863 69,029 1 76,594 46,431 1 9,697 1 1 0,466 S hipping 8,502 1 ,91 3 4,81 4 1 ,775 483 20 1 1 2 351 8,01 8 1 ,892 4,702 1 ,424 Cons truction 204,530 21 ,757 6,002 1 76,771 70,450 553 651 69,246 1 34,080 21 ,204 5,351 1 07,526 Touris m 253,648 1 24,1 84 61 ,838 67,626 21 ,279 1 ,1 02 3,969 1 6,208 232,369 1 23,081 57,869 51 ,41 9 Energy 29,829 20,745 3,949 5,1 35 2,666 344 427 1 ,895 27,1 62 20,401 3,521 3,240 Agriculture 36,665 3,744 3,483 29,438 8,902 1 9 648 8,235 27,763 3,726 2,835 21 ,202 Food 35,445 4,21 3 2,1 08 29,1 23 1 1 ,653 38 1 96 1 1 ,41 9 23,792 4,1 75 1 ,91 2 1 7,705 Other 72,050 1 1 ,075 3,326 57,649 21 ,455 83 405 20,968 50,595 1 0,992 2,921 36,682

Public s ector 1 5,507 1 0,71 7 3,924 865 1 ,053 1 79 484 390 1 4,454 1 0,538 3,440 476 Greece 1 5,507 1 0,71 7 3,924 865 1 ,053 1 79 484 390 1 4,454 1 0,538 3,440 476 Other countries - - - - - - - - - - - -

Total 1 ,485,025 363,544 1 79,747 941 ,734 339,997 4,009 1 6,500 31 9,489 1 ,1 45,028 359,535 1 63,248 622,246

Total L&R after prov is ionsTotal prov is ions for impairment

Greece

Loans and other trade receivables , impaired loans and prov is ions for impairment, per loan category, s ector and geographical regionB alance as at 31 .1 2.201 9(am ounts in thous and €)

Total loans and other receivables before prov is ion


Forborne loans and trade receivables per category (am ounts in thous and €)

31 .1 2.2020 31 .1 2.201 9

R etail 69,337 72,502 Mortgage 45,706 48,345 Cons umer 23,631 24,1 57

Corporate 279,092 31 1 ,936 Large Enterpris es 1 73 - S mall & Medium Enterpris es 278,91 9 31 1 ,936

B ublic S ector 1 64 264 Total 348,593 384,702

Total gros s value

Total net valueTotal gros s

valueTotal net value

Greece 528,1 88 348,593 577,000 384,702 Total 528,1 88 348,593 577,000 384,702

31 .1 2.2020 31 .1 2.201 9Forborne loans & trade receivables per

geographical region (am ounts in thous and €)

R egulation category 31 .1 2.2020 31 .1 2.201 9

Trans fer of interes t payment 7,1 90 22,925

R educed payment plan 57,021 69,345

Allowance of grace period 61 ,1 1 5 49,639

Extens ion of loan term 1 62,1 29 1 63,264

Capitalization of delayed ins tallment 8,956 4,655

Write-off of part of debt 4,885 2,683

Combination of adjus tment meas ures 40,073 41 ,1 51

Other 7,225 31 ,040 Total 348,593 384,702

Analys is of forborne loans & trade and other receivables per regulation category(am ounts in thous and €)

Analys is of forborne loans and trade and other receivables per regulation category B alance as at 31 .1 2.2020(am ounts in thous and €)

R egulation category

Trans fer of interes t payment 1 2,960 5,770 7,1 90 R educed payment plan 95,342 38,321 57,021 Allowance of grace period 1 09,495 48,380 61 ,1 1 5 Extens ion of loan term 220,21 4 58,085 1 62,1 29 Capitalization of delayed ins tallment 1 5,1 36 6,1 80 8,956 Write-off of part of debt 7,420 2,535 4,885 Combination of adjus tment meas ures 57,070 1 6,997 40,073 Other 1 0,551 3,326 7,225 Total 528,1 88 1 79,595 348,593

Total L&R before

prov is ions

Total prov is ions for impairment of

L&R


Analys is of forborne loans and trade and other receivables per regulation category B alance as at 31 .1 2.201 9(am ounts in thous and €)

Είδος Ρύθμισης

Trans fer of interes t payment 29,297 6,372 22,925 R educed payment plan 1 1 1 ,906 42,560 69,345 Allowance of grace period 99,646 50,007 49,639 Extens ion of loan term 21 5,1 79 51 ,91 5 1 63,264 Capitalization of delayed ins tallment 1 0,1 41 5,486 4,655 Write-off of part of debt 3,741 1 ,058 2,683 Combination of adjus tment meas ures 60,726 1 9,575 41 ,1 51 Other 46,364 1 5,325 31 ,040 Total 577,000 1 92,298 384,702

Total L&R before

prov is ions

Total prov is ions for impairment of

L&R



S tage 1 S tage 2 S tage 3 S tage 1 S tage 2 S tage 3

R etail 1 ,939 774 1 ,804 - 4,51 8 2,041 1 ,268 2,530 - 5,839 Corporate 1 7,030 5,295 1 0,008 - 32,333 1 6,1 32 8,848 1 5,245 - 40,226 P ublic s ector 282 42 1 61 - 485 476 1 05 9 - 591 Total revenues from interes t 1 9,251 6,1 1 1 1 1 ,973 - 37,335 1 8,650 1 0,221 1 7,785 - 46,656

Interes t from credit ins titution - - - 1 73 1 73 - - 1 ,390 1 ,390

Interes t of fixed return s ecurities (Greek Government Bonds )

- - - 682 682 - - - 684 684

Interes t of fixed return s ecurities (Corporate bonds )

- - - 779 779 - - 88 88

S pecial depos its at Central Bank 651 651 6 6

Other interes t bearing as s ets 1 70 1 70 1 43 1 43

Total revenues from interes t of loan and other receivables

1 9,251 6,1 1 1 1 1 ,973 2,454 39,789 1 8,650 1 0,221 1 7,785 2,31 1 48,966

Analys is of revenues from interes t bas ed onthe quality of Loans & Trade and otherreceivables per loan category (am ounts in thous and €)

R evenues from loans31 .1 2.201 9

Total revenues

from interes t

Other revenues

from interes t

R evenues from loans

Other revenues from

interes t

31 .1 2.2020

Total revenues from interes t


B. Credit risk / Available to banks, due from banks & debt securities

P lus B Β B - Les s than B Β B - Non-rated Plus B Β B - Les s than B Β B - Non-rated

Cas h available with Central Banks - 1 42,760,595 - - 302,961 ,937 - Due from credit ins titutions 4,452,474 30,1 75,940 1 ,399,269 2,1 37,784 3,202,362 2,634,1 03 Other debit s ecurities - 4,268,844 - - 3,378,240 Greek Government Bonds - 479,993,71 1 - - (0) - Corporate bonds - 21 ,860,21 2 30,703,932 - 5,367,300 8,207,761 Total 4,452,474 674,790,459 36,372,045 2,1 37,784 31 1 ,531 ,599 1 4,220,1 04

Cas h available with banks , receivables from banks & credit s ecurities (analys is per c las s ification) (am ounts in €)

31 .1 2.201 931 .1 2.2020

Concentration risk may arise from exposures to specific customers, groups of connected clients, on exposures to specific groups of counterparties whose likelihood of default is influenced by common factors such as the business sector, the macroeconomic environment, geographic location, currency etc. The Bank shall measure the concentration risk and the corresponding capital needs with the Sectoral Concentration Index (SCI) and Individual Concentration Index (ICI) regarding its 1000 major borrowers. More specifically, while determining the Sector Concentration Index (SCI), Loans and Outstanding Financial Position exposures are taken into account after the application of the appropriate CCF and following the classification per sector as presented in the following table:

Off balance sheet exposures

Loans per indus try s ector Expos ure

(amounts in thous and €)

%

Corporate Loans 1 ,396,450 86.74%Wholes ale and retail 370,721 23.03%Hotels - Touris m 293,1 33 1 8.21 %Indus try 254,885 1 5.83%Cons truction 21 9,991 1 3.66%Agriculture 37,044 2.30%Food 36,903 2.29%Energy/ P hotovoltaic 33,981 2.1 1 %S ervices / Freelancers 31 ,330 1 .95%Other 27,803 1 .73%Trans portation and Warehous ing 1 9,689 1 .22%R eal Es tate Management 1 7,644 1 .1 0%Municipality / Civic Organizations 22,569 1 .40%Tellecommunication/IT/Media 1 3,762 0.85%S hipping 8,21 7 0.51 %Healthcare s ervices 3,390 0.21 %Water res ources and was te management 3,61 6 0.22%Ins urance - Banking 1 ,772 0.1 1 %

Mortgage Loans 1 35,303 8.40%Cons umer Loans 78,207 4.86%Total 1 ,609,960 1 00.00%

Additional capital requirements are defined based on the following table:

S ectoral Concentration Index (S CI)

0<S CI≤1 21 2<S CI≤1 51 5<S CI≤2020<S CI≤2525<S CI≤1 00

0.020.04

0.080.06

Multiplier

0.00

Given the SCI, the multiplier applies only to credit risk capital requirements associated with the exposures used to calculate the Index and the resulting percentage increases the capital requirements in order to facilitate the formation of the financial capital. The Individual Concentration Index (ICI) is calculated regarding 1000 major borrowers of the Bank. In case the Index exceeds 0,1, capital requirements are defined based on the following table, similarly to the case regarding SCI:

Indiv idual Concentration Index (IC I)

0.0<ICI≤0.10.1 <ICI≤0.20.2<ICI≤0.40.4<ICI≤1 .01 .0<ICI≤1 00.0

0.020.00

Multiplier

0.040.060.08

Intrinsic Capital Estimate


Sector Concentration Index (SCI) amounts to 14,21 that corresponds to multiplier of 0,02 and to capital requirements of € 1.681,30 k. The Individual Concentration Index (ΙCI) amounts to 0,35 that corresponds to multiplier of capital requirements 0,04 and to capital requirements of € 2.633,47 k. In view of the aforementioned, the intrinsic capital required versus the concentration risk to which the Bank is exposes stands at € 4.314,77 k.

4.4.2. Interest rate risk The interest rate risk arises from different impact of interest rate changes on assets and liabilities, depending on the sensitivity of assets in interest rate changes, due to mismatch in their repricing and maturity. An unexpected change in interest rates can seriously affect the profitability and the equity of the Bank. The equity risk relates to the price change of an asset (e.g. bond) which is due to the interest rate change, affecting the value of portfolio. The income risk pertains to the possibility of decrease of the Bank’s income in an unexpected or non-desirable development of interest rates. For the measurement of the interest rate exposure, as well as for the estimation of intrinsic capital, the Gap Analysis technique is used, as well as the Duration Gap method. To assess interest rate risk, the Bank applies stress test interest rate fluctuation scenarios, determining their effect on interest income and equity through NII Gap Analysis and EVE (Economic Value of Equity), respectively.

Interes t rate ris k 31 .1 2.2020 (amounts in thous and €)Non-interes t

bearings<1 Μ 1 -3Μ 3-6Μ 6Μ-1 Υ 1 -3Υ >3Υ Total

AS S ETSCas h and balances with Central Banks 1 5,437 1 39,238 - - - - - 1 54,675 Due from credit ins titutions - 36,028 - - - - - 36,028 Financial ins truments at fair value through profit or los s 4,269 - - - - - - 4,269 Financial as s ets at amortized cos t 97 35,1 55 - 9,989 264,1 56 1 71 ,51 6 51 ,645 532,558 Loans and other trade receivables 5,945 465,1 38 560,924 1 28,371 41 ,970 1 6,31 4 1 1 ,265 1 ,229,926 Own-us ed fixed as s ets 21 ,680 - - - - - - 21 ,680 Inves tment property 1 5,667 - - - - - - 1 5,667 Intangible as s ets 3,1 42 - - - - - - 3,1 42 R ights -of-us e as s ets IFR S 1 6 6,477 - - - - - - 6,477 Deferred tax as s ets 67,900 - - - - - - 67,900 Other as s ets 48,442 - - - - - - 48,442 As s ets available for s ale (Foreclos ed) 1 3,695 - - - - - - 1 3,695

Total as s ets 202,750 675,559 560,924 1 38,360 306,1 26 1 87,830 62,91 0 2,1 34,458

LIAB ILIT IESDue to Central Banks - 420,000 - - - - - 420,000 Due to other credit ins titutions 1 ,809 1 2,01 9 1 35,456 - - - - 1 49,284 Due to cus tomers 3,784 891 ,794 231 ,828 1 58,652 1 22,264 5,908 - 1 ,41 4,231 Credit s ecurites and other loan liabilities 1 5,068 - - - - 23,448 9,400 47,91 6 Employee defined benefit obligations 2,754 - - - - - - 2,754 Leas e liabilities IFR S 1 6 6,648 - - - - - - 6,648 Other liabilities 1 3,673 - - - - - - 1 3,673 Equity 79,952 - - - - - - 79,952

Total liabilities 1 23,689 1 ,323,81 3 367,284 1 58,652 1 22,264 29,356 9,400 2,1 34,458

Interes t rate ris k 31 .1 2.2020 (amounts in thous and €)Non-interes t

bearing<1 Μ 1 -3Μ 3-6Μ 6Μ-1 Υ 1 -3Υ >3Υ

GAP = R S As - R S Ls - -648,255 1 93,639 -20,292 1 83,862 1 58,474 53,51 0CUMULATIVE GAP - -648,255 -454,61 5 -474,907 -291 ,045 -1 32,571 -79,061


Interes t rate ris k 31 .1 2.201 9 (am ounts in thous and €)

Non-interes t bearings

<1 Μ 1 -3Μ 3-6Μ 6Μ-1 Υ 1 -3Υ >3Υ Total

AS S ETSCas h and balances with Central Banks 1 7 ,292 297,700 - - - - - 31 4,993 Due from credit ins titutions 873 7 ,1 01 - - - - - 7,974 Financial ins trum ents at fair value through profit or los s

3,478 - - - - - 1 3,475 1 6,953

Financial as s ets at am ortized cos t 4,036 581 ,266 449,1 21 76,1 46 32,797 1 ,1 35 528 1 ,1 45,028 Held-to-m aturity portfolio 21 ,043 - - - - - - 21 ,043 Own-us ed fixed as s ets 1 5,667 - - - - - - 1 5,667 Inves tm ent property 2,724 - - - - - - 2,724 Intangible as s ets 4,662 4,662 R ights -of-us e as s ets IFR S 1 6 67,672 - - - - - - 67,672 Deferred tax as s ets 46,640 - - - - - - 46,640 Other as s ets 1 3,538 - - - - - - 1 3,538

As s ets available for s ale (Forec los ed) 1 97,626 886,068 449,1 21 76,1 46 32,797 1 ,1 35 1 4,003 1 ,656,894

LIABILITIESDue to Central Banks 3,263 8,333 1 54,004 - - - - 1 65,600 Due to other credit ins titutions 3,499 855,261 1 80,852 1 75,657 1 1 3,077 5,748 - 1 ,334,095 Due to cus tom ers 1 5,050 - - - - 23,420 9,400 47,870 Credit s ecurites and other loan liabilities 2,623 - - - - - - 2,623 Em ployee defined benefit obligations 4,772 4,772 Leas e liabilities IFR S 1 6 22,937 - - - - - - 22,937 Other liabilities 78,998 - - - - - - 78,998

Equity 1 31 ,1 42 863,595 334,856 1 75,657 1 1 3,077 29,1 67 9,400 1 ,656,894 Interes t rate ris k 31 .1 2.201 9 (amounts in thous and €)

Non-interes t bearings

<1 Μ 1 -3Μ 3-6Μ 6Μ-1 Υ 1 -3Υ >3Υ

GAP = R S As - R S Ls - 22,473 1 1 4,264 -99,51 1 -80,280 -28,033 4,603CUMULATIVE GAP - 22,473 1 36,737 37,226 -43,054 -71 ,087 -66,484 Sensitivity analysis:

-1 % 1 %S ens itiv ity of net interes t income 2,730 (2,966) S ens itiv ity of Equity (544) 1 ,067

S ens itiv ity interes t rate analys is as at 31 .1 2.2020(am ounts in thous and €)

Change in interes t rates

4.4.3. Liquidity risk Liquidity risk management pertains to the capacity of the Bank to maintain liquidity adequacy for the fulfillment of its transactional liabilities and to ensure a stable funding base. Liquidity risk for the Bank arises both from mismatch in size and duration of assets and liabilities. Key form of liquidity risk is the possibility that the Bank does not have efficient liquid reserves for the coverage of its liabilities, which can end up causing its survival problems. Sources of liquidity risk can arise both from management of liabilities and assets of the Bank. More specifically, the sources can be described as follows:

Liability-side risk i. Refinancing risk: e.g. when long-term liabilities are financed through short-term loans, resulting in a

disorder in markets being able to cause financing cost increase or inability of the Bank to settle all its obligations.

ii. Withdrawal risk: the risk of non-expected deposit withdrawal following some rumors (whether real or hypothetical) about economic difficulties of the Bank.

Asset-side risk i. Non-expected uses of non-performed credit line limits. ii. Capitalization of assets in very low prices (market liquidity risk). iii. Overdue receiving liabilities.

Other Sources i. When the Bank financing is based on wholesale deposits rather than on retail deposits. ii. Concentration of sources of financing in one market (interbank, big depositors), geographical

concentration, concentration to a few liquidity suppliers, concentration in foreign currency. iii. Liabilities from out-of-balance-sheet assets: e.g. demand for increased collateral from counterparties,

liabilities of providing liquidity to clients from conventional credit line limits or Letters of Guarantee.

The Bank’s objective under liquidity risk management is to ensure, to the best possible extent, the existence of satisfying liquidity, with the objective to satisfy its obligations both in normal and stress conditions, without disproportionate additional cost. For the estimation of liquidity risk, the Bank, through its policy, has defined the desirable, according to its business plan, withdrawal limits.


According to Article 412, paragraph 1, of regulation (E.U.) No. 575/2013 of European Parliament and Council and paragraph 2, (E.U.) 2015/61, the bank should possess «liquid assets, their total values, must be able to cover liquidity outflows minus liquidity inflows under extreme circumstances». The regulation (E.U.) No. 575/2013 introduces the following ratios for monitoring liquidity risk: Liquidity Coverage Ratio (LCR): Pertains to the percentage of high-quality liquid assets the credit institution holds, in order to offset estimated cash outflows during a 30 day stress test. According to the Regulations 61/2015 and 575/2013, the limit of Liquidity Coverage Ratio (LCR) for the year 2017 should not be less than 80%, while since the year 2018 it should not be less than 100%. For the Bank, the LCR was calculated at 255,99% as at 31.12.2020. Net Stable Funding Ratio (NSFR): is an amount of long-term stable funding that the Bank should hold (Liabilities that recommend stable funding, divided by Assets that demand stable funding). For the Bank, the NSFR was calculated at 116% as at 31.12.2020.

R equired benchmark

R atioR equired

benchmarkR atio

Liquidity Coverage R atio (LCR ) LCR > 1 00% 255.99% LCR > 1 00% 208.65%Net S table Funding R atio (NS FR ) NS FR > 1 00% 1 1 6.00% NS FR > 1 00% 1 20.00%

Liquidity R atios 31 .1 2.2020 31 .1 2.201 9

During the monitoring of liquidity risk, the Bank classifies Assets and Liabilities in time periods, depending on the remaining time until their expiration and thus ensuring an overview of future cash flows. The following tables analyze Assets and Liabilities in time periods, depending on the remaining time, as at 31.12.2020 and 31.12.2019. Liquidity ris k 31 .1 2.2020 (amounts in €) 1 Μ 1 -3Μ 3-1 2Μ 1 -5Υ >5Υ Total

Liquidity of As s ets Cas h and balance with Central Banks 1 54,675,1 90 1 54,675,1 90 Due from credit ins titutions 36,027,683 36,027,683 Financial ins truments at fair value through profit or los s 4,268,844 4,268,844 Financial as s ets at amortized cos t 35,1 55,1 59 - 274,1 44,601 1 81 ,405,1 98 41 ,852,897 532,557,855 Foreclos ed as s ets 1 3,694,729 1 3,694,729 Loans and advance to cus tomers 1 57,204,830 1 0,51 0,1 65 47,1 33,81 9 1 ,358,072,321 - 1 ,572,921 ,1 35 Les s : P rovis ions for bad debts - - Owned-us ed fixed as s ets & Inves tment property 37,346,782 37,346,782 Intangible as s ets 3,1 41 ,548 3,1 41 ,548 R ights of us e as s ets IFR S 1 6 46,871 93,743 421 ,843 3,1 29,868 2,784,624 6,476,950 Deferred tax as s ets 1 3,679,1 34 9,1 21 ,841 45,098,935 67,899,909 Other as s ets 6,21 6 985,802 47,450,41 0 48,442,428

Total As s ets 383,1 09,733 1 0,61 0,1 24 336,365,1 99 1 ,620,284,759 1 27,083,237 2,477,453,052

L iquidity of L iabilities and EquityDue to Central Banks 420,000,000 420,000,000 Due to other credit ins titutions 3,1 79,467 3,399,621 20,096,723 73,656,1 65 48,952,503 1 49,284,479 Due to cus tomers 244,999,860 273,987,407 280,722,935 61 4,520,364 1 ,41 4,230,566 Credit s ecurities and other loan liabilities 32,848,1 97 1 5,067,983 47,91 6,1 79 Employee defined benefit obligations 2,754,31 7 2,754,31 7 Leas e liabilities IFR S 1 6 6,648,238 6,648,238 Other liabilities 51 6,641 2,055,908 1 1 ,1 00,371 1 3,672,920

Total Ι 248,695,967 279,442,936 31 1 ,920,029 1 ,1 41 ,024,726 73,423,040 2,054,506,699 Equity (ΙΙ) 79,951 ,662 79,951 ,662 Total liabilities and equity (Ι+ΙΙ) 248,695,967 279,442,936 31 1 ,920,029 1 ,1 41 ,024,726 1 53,374,702 2,1 34,458,361 Open liquidity gap 1 34,41 3,765 (268,832,81 2) 24,445,1 69 479,260,033 (26,291 ,465)

Liquidity ris k 31 .1 2.201 9 (amounts in €) 1 Μ 1 -3Μ 3-1 2Μ 1 -5Υ >5Υ Total

Liquidity of As s etsCas h and balance with Central Banks 31 4,992,636 31 4,992,636 Due from credit ins titutions 7,974,249 7,974,249 Financial ins truments at fair value through profit or los s 8,006,1 25 8,947,1 76 1 6,953,301 Foreclos ed as s ets 1 3,538,1 90 1 3,538,1 90 Loans and advance to cus tomers 1 88,21 0,400 7,744,205 32,546,041 1 ,256,524,728 - 1 ,485,025,374 Les s : P rovis ions for bad debts (339,997,395) (339,997,395) Owned-us ed fixed as s ets & Inves tment property 36,71 0,386 36,71 0,386 Intangible as s ets 2,723,81 5 2,723,81 5 R ights of us e as s ets IFR S 1 6 4,661 ,71 5 4,661 ,71 5 Deferred tax as s ets 1 4,239,750 53,432,271 67,672,021 Other as s ets - 1 ,01 0,1 79 3,821 ,000 41 ,808,883 - 46,640,061

Total As s ets 51 1 ,1 77,284 8,754,384 36,367,041 996,844,095 1 03,751 ,548 1 ,656,894,352

L iquidity of L iabilities and EquityDue to Central Banks - Due to other credit ins titutions 3,957,426 3,760,723 1 8,583,961 94,743,1 21 44,555,083 1 65,600,31 5 Due to cus tomers 31 4,593,849 1 80,059,840 287,744,003 551 ,697,097 - 1 ,334,094,788 Credit s ecurities and other loan liabilities - - - 23,369,661 24,500,000 47,869,661 Employee defined benefit obligations 2,622,733 2,622,733 Leas e liabilities IFR S 1 6 4,772,206 4,772,206 Other liabilities 51 8,502 2,1 1 1 ,766 20,306,434 - - 22,936,702

Total Ι 31 9,069,777 1 85,932,329 326,634,398 669,809,879 76,450,022 1 ,577,896,405 Equity (ΙΙ) 78,997,948 78,997,948 Total liabilities and equity (Ι+ΙΙ) 31 9,069,777 1 85,932,329 326,634,398 669,809,879 1 55,447,969 1 ,656,894,352 Open liquidity gap 1 92,1 07,508 (1 77,1 77,945) (290,267,357) 327,034,21 6 (51 ,696,421 )


4.5. Operational risk Operational risk is a non-financial risk and refers to contingent economic loss that may occur from inadequacy, failure or inappropriateness of established internal procedures, controls and systems, due to any external events such as natural disasters or terrorist attacks or the human factor. In essence, this is the risk that arises from the daily operations of the Bank and the implementation of its operational goals and this is the reason that affects risk management process as well. Definition of risk includes legal risk. Legal risk includes the exposure of the foundation to fines and penalties resulting from supervisory and regulatory audit, as well as from the resolution of private settlements. Examples of operational risk are frauds, errors and omissions from the Bank’s human resources, scandals related to credit institution, loss of assets and technological equipment of the Bank, risks of collapse of technical systems. Examples of operational risk are frauds, errors and omissions from the Bank’s human resources, scandals related to credit institution, loss of assets and technological equipment of the Bank, risks of collapse of technical systems. The Risk Management Division is responsible for defining and monitoring the operational risk management framework, as well as for the policies and procedures that are developed and approved by the competent Committees and the Board of Directors.

4.6. Capital adequacy The bank is subject to the risk of having insufficient funds to meet the minimum regulatory capital adequacy requirements. In addition to this, the applicable minimum capital adequacy limits may in the future increase or change the way they currently apply to capital requirements. The capital adequacy index may be affected by many factors, including the deterioration in economic conditions and the impairment of assets. Any deterioration in the credit quality of the Bank's assets might create the need for additional regulatory capital. The ineffective management of regulatory capital of the Bank may adversely affect the going concern of the entity, its organic growth and the implementation of its strategy and may cause a withdrawal of authorization by the Bank of Greece. The Bank’s fundamental principle and main objective is to maintain a strong capital adequacy in order to ensure the smooth operation and development of the Bank while ensuring the necessary trust between the Institution and the market (shareholders, depositors and counterparties in general). Data regarding capital adequacy of the Bank are submitted quarterly to ECB’s Unified Supervisory Mechanism. The Executive Committee of the Bank of Greece defines the minimal ratios (common shares capital, capital tier 1 and adequacy capital) that the Bank should have. The capital adequacy ratio compares the regulatory equity with the risks (weighted assets) undertaken by the Institution. The regulatory capitals include the capitals of common equity tier 1 (equity capital, reserves), the additional capitals tier 1 (hybrid securities) and the capitals tier 2 (subordinate equity instruments). The weighted assets include credit risk of investment portfolio, market risk of trade portfolio and operational risk. From January 1st of 2014, the Directive 2013/36/E.U. of the European Parliament and the Council was implemented, at 26th of June of 2013 which was incorporated in Greek Law through Law 4261/2014 and Regulation 575/2013 of the European Parliament and the Council of Europe at 26th of June of 2013 («CRD IV»), which gradually introduce the new equity adequacy framework of credit institutions into the standards of Basel III. According to the above institutional framework for the calculation of the capital adequacy ratio the transitional provisions as applied will be followed. Moreover: Apart from the limit of 8% for the Capital Adequacy Ratio, 4.5% limit applies to the common equity ratio and 6% for the ratio of Capital Tier 1, while provisions are made for retaining a Capital conservation buffer, in addition to the common shares. In particular:

a. “Reserve for capital conservation Capital Tier 1 common shares”, which stands at 2,500% in 2019 and 2020, and b. “Special countercyclical capital buffer”, which was zero from 2016 to 2020. It is to be noted that the special countercyclical capital buffer also remains at zero level for the second quarter of 2021 under BoG Decision 186/18.03.2021.

The BoG, taking into account the extraordinary conditions that have been formed due to the pandemic of Covid-19 with the decision EPATH 353/10.04.2020 has set the minimum total capital ratio (EDEA)2 at 10.09% as of 13.04.2020. It is pointed out that the Bank is subject to the capital requirements for maintaining a capital reserve of 2.5% in accordance with article 122 of Law 4261/2014, and in this context, maintaining the reserve will be evaluated according to the prevailing conditions. In addition, the Bank is recommended to meet an additional Pillar 2 Capital Guidance margin of + 1.5%.

2 Supervisory Review & Evaluation Procedure


It is pointed out that despite the fact that the Bank is subject to the Capital conservation buffer – CcoB and the recommendation to maintain an additional margin under the Pillar 2 Capital Guidance, the ECB decision temporarily allows operation of credit institutions below these thresholds. The ECB has also permitted the credit institutions (LSIs) to partially use capital instruments that are not eligible for CET1 capital, for example capital instruments belonging to Additional Tier 1 (AT1) or to Tier 2 - T2, in order to meet the requirements of P2R. Thus, a measure was adopted earlier, which, scheduled to take effect on 1 January 2021 in the context of the latest revision of the CRD V. As far as Pancreta Bank is concerned, coverage of the receivables has been allowed to be carried out by 56% by CET1, 75% (TIER 1) and 100% (Total Capital). The Bank has also adopted the provisions of Article 473a of Regulation (EU) no. 2017/2395, amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on equity. The above transitional arrangements have allowed the Bank to return part of the funds arising from the adoption of IFRS 9 during the first five years of its use. In addition, pursuant to paragraph 7a added to Article 473a of Regulation (EU) no. 2017/2395, the Bank replaced the decrease in the values of exposures due to the additional arrangements by applying a 100% weighting ratio to the amount added to Common Equity Tier 1 items. Finally, the provisions of Commission Delegated Regulation (EU) 2020/2176 of 12 November 2020 12 November 2020, which allows credit institutions to determine the value of assets in the software category (classified in the financial statements as intangible assets), have been applied, based on cumulative prudential depreciation, so that part of this value is weighted against risks and not deducted directly from Common Equity Tier 1 items. The Bank ratios are as follows:


Capital margin

R atios

ChangeTotal Capital

R atio


requirements

S ecurity res erves

under Law 4261 /201 4


under Law 4261 /201 4

Minimum capital


31 .1 2.2020 31 .1 2.201 9

Capital R atio Calculation

Am ounts in euroS hare capital 39,471 ,780 39,471 ,780 Amounts for capital increas e 1 8,496 - S hare prem ium 1 36,81 7,697 1 36,81 7,697 Other res erves 71 ,099,21 3 71 ,099,21 3 R etained earnings (1 67,455,523) (1 68,390,742) Total s upervis ory capital adjus mtents of regis tered s hares category 1 35,791 ,690 48,261 ,921

Common Equity T ier 1 Capital 1 1 5,743,352 1 27,259,868 Hybrid capital 1 5,1 00,000 1 5,1 00,000 Total s upervis ory capital adjus mtents category 1 - -

Tier 1 Capital (Α) 1 30,843,352 1 42,359,868 Liabilities 32,81 6,1 79 32,769,661 Total s upervis ory adjus tments of complementary equity (1 4,233,524) (9,476,71 0)

Total complementary equity (Β ) 1 8,582,656 23,292,951 Total S uperv is ory Equity (Α) + (Β ) 1 49,426,007 1 65,652,820

Total weighted average agains t ris ks of as s ets 1 ,353,563,524 1 ,251 ,554,1 42

CET1 Capital ratio 8.551 % 1 0.1 68%Tier1 Capital ratio 9.667% 1 1 .375%Total Capital R atio 1 1 .039% 1 3.236%

31 .1 2.2020 31 .1 2.201 9

4.7. Regulatory risk Regulatory risk is defined as the risk of non-compliance with legislations, regulatory requirements, codes of conduct or best practice standards, relating to laws and regulations applicable to licensing and conduct of banking institutions, as well as financial crime, such as fighting money laundering and terrorist financing, fraud and bribery or corruption. As far as the Bank is concerned, this risk is also related to recognition of part of deferred tax assets as receivables from the Greek State with a corresponding issuance of free securities of common shares and the corresponding dilution effect regarding the existing shares. Existing shareholders can acquire these options from the State. The above provisions are recorded in 27A of Law 4172/2013 in case of accounting loss.


4.8. Market risk Market Risk is defined as the probability of realizing loss from managing assets and liabilities as well as managing the various trading portfolios due to adverse movements in prices of products included in these portfolios. Such portfolios are portfolios of shares and stock indices, interest rates, goods, currencies, etc. The Bank is not significantly exposed to market risk as the total value of the trading book does not exceed 5% of the value of total assets or € 15 million.

4.9. Foreign currency risk The Bank’s transactions and operations in foreign currency remain limited. Moreover, the Bank does not hold significant assets or liabilities in foreign currency. Therefore, the Bank is not exposed to significant foreign currency risk. It is to be noted that on 31.12.2020, assets in foreign currency are as follows: As s ets held at foreign currency

Am ounts in euro Amount in € Amount in $

R eceivables from Credit Ins titutionsS ight depos its in $ 809,41 8 993,237 Other receivables (term depos its in $) 3,259,71 8 4,000,000 Total 4,069,1 36 4,993,237

T rade receivablesS ight depos its in $ 47,848 58,71 4 S aving accounts in $ 274,773 337,1 74 Term depos its in $ 3,708,945 4,551 ,246 Total 4,031 ,566 4,947,1 34

31 .1 2.2020

4.10. Other risks

Reputation risk: It is the current or future risk regarding profits, equity or liquidity of the Bank and arises from the damage caused to the reputation of the institution. Adverse publicity may arise as a consequence of the conduct of employees or suppliers/customers of the Bank or their business practices. Strategic risk: It is the risk that arises from changes in the business environment, from negative decisions that can substantially affect the Banks long-term objectives and from the failure of its business plan. Environmental, Social Responsibility & Governance Risk: Such risk is defined as the risk that adverse financial consequences might arise, directly or indirectly, from the impact of environmental or social responsibility and governance issues regarding the Bank and key stakeholders, including customers, employees, investors and suppliers.

4.11. Fair values of financial assets and liabilities The fair values of financial assets and liabilities of the Bank are as follows:

Book V alue Fair V alueDue from c redit ins titutions No 36,027,683 36,027,683 -

Financ ial ins trum ents at fair value through profit or los s Yes - - 1 & 3

P ublic S ector Bonds Yes - - 1L is ted s hares on ATHEX Yes - - 1Other s hares / ins ves tm ents Yes - - 3Finans ial as s ets at am ortized c os t No - 529,068,362 -P ublic S ector Bonds No - 476,671 ,393 -Corporate Bonds No - 52,396,969 -Loans and trade rec eivables (after provis ions ) No 1 ,229,926,444 1 ,229,926,444 -

Book V alue Fair V alueDue from c redit ins titutions No 420,000,000 420,000,000 -Due from other c redit ins titutions No 1 49,284,479 1 49,284,479 -Due from c us tom ers No 1 ,41 4,230,566 1 ,41 4,230,566 -Credit s ec urities and other loan liabilities No 47,91 6,1 79 47,91 6,1 79 -

As s etsMeas ured at

fair v alue

31 .1 2.2020Fair v alue lev el

L iabilitiesMeas ured at

fair v alue

31 .1 2.2020Fair v alue lev el


Book V alue Fair V alueDue from c redit ins titutions No 7,974,249 7,974,249 -

Financ ial ins trum ents at fair value through profit or los s Yes 1 6,953,301 1 6,953,301 1 & 3

P ublic S ector Bonds Yes (0) (0) 1Corporate Bonds Yes 1 3,575,061 1 3,575,061 3Lis ted s hares on ATHEX Yes 37,522 37,522 1Other s hares / ins ves tm ents Yes 3,340,71 8 3,340,71 8 3

Loans and trade rec eivables (after provis ions ) No 1 ,1 45,027,979 1 ,1 45,027,979 -

Book V alue Fair V alueDue from other c redit ins titutions No 1 65,600,31 5 1 65,600,31 5 -Due from c us tom ers No 1 ,334,094,788 1 ,334,094,788 -Credit s ec urities and other loan liabilities No 47,869,661 47,869,661 -

LiabilitiesMeas ured at

fair v alue

31 .1 2.201 9Fair v alue lev el

As s etsMeas ured at

fair v alue

31 .1 2.201 9Fair v alue lev el

Level 3 financial instruments Level 3 financial instruments include securities in privately owned companies not listed on a regulated market. The main non-observable market parameters on the basis of which the fair value of these instruments was determined are the assets of these companies, their adjusted equity, as well as projected financial data. 5. Net interest income Net interes t inc om e

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Interes t inc om e from :Fixed yield s ecurities (Governm ent Bonds ) 681 .529 683.795 Fixed yield s ecurities (corporate bonds ) 778.830 88.035 Loans 37.335.237 46.655.551 S ight depos its at credit ins titutions 84.21 7 520.605 Term depos its at credit ins titutions 89.1 28 857.595 Other interes t bearing as s ets 1 69.760 1 54.894 Interes t and s im ilar inc om e 39.789.250 48.966.1 03


Interes t expens es from :Due to cus tom ers 6.749.099 1 2.886.271 Greek governm ent guarantee s upplies 1 .499.81 6 1 .488.1 00 P ancretan Bond 3.368.026 3.334.1 47 Contribution to Depos it Guarantee Fund 1 .1 30.251 1 .096.933 Due to European Inves tm ent Bank 572.572 746.946 Levy according to Law 1 28/75 3.520.044 4.497.933 Interes t on s pecial depos its 1 .677 1 2.1 96 C learing office contribution 7.794 - Interes t and s im ilar ex pens es 1 6.849.279 24.062.525

Net interes t inc om e 22.939.971 24.903.577 R atios 31 .1 2.2020 31 .1 2.201 9

Average depos it and other interes t bearing liabilities rate 1 .03% 1 .61 %Net Interes t Margin 1 .48% 1 .78% The decrease in interest income pertains to shrinking portfolio due to the excess of loan repayments in relation to the new disbursements and to the general reduction in interest rate, lauding to a corresponding decrease in interest rates. Moreover, the downward trend of interest rates has led to a corresponding reduction in interest expenses with the average interest rate on deposits and other interest-bearing liabilities standing at 1.03% compared to 1.61% in the previous year. The Net Interest Margin stood at 1.48% on 31.12.2020, compared to 1.78% on 31.12.2019. 6. Net commission income Net commission income is analyzed as follows:


Net c om m is s ion inc om e

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Com m is s ion inc om e from :Com m is s ions on letters of guarantee 1 .432.087 1 .648.579 R evenue from legal dis putes 1 .099.678 1 .806.1 81 Com m is s ions on rem ittances 1 .231 .344 1 .381 .054 Com m is s ions on checks and other collaterals 1 .244.950 1 .31 3.601 Com m is s ion on P OS 1 .335.037 1 .440.049 Com m is s ions on loan files 698.1 61 634.047 Com m is s ions on prem ium s 487.941 506.1 33 Com m is s ions on account m anagem ent 427.543 462.276 Com m is s ions on bank cards 398.055 457.701 Com m is s ions on ATM 281 .71 4 31 6.21 5 R evenue from s ecurities exam ination 94.675 1 60.323 Com m is s ions on debt s ettlem ents 72.21 4 1 03.044 Com m is s ions on third parties as s ignm ents 57.858 63.1 71 Com m is ions on providing data to TIR ES IAS 34.895 45.1 1 4 Com m is s ions on forewing trade im port-export 53.81 0 60.562 Com m is s ions on filed data provis ion 39.350 53.233 Com m is s ions on com panies legalization review 56.468 38.001 Com m is s ions on JES S ICA program 1 71 .1 87 1 1 7 .31 8 Com m is s ions on ETEAN, Anaptiks iaki Kritis 6.573 3.1 65 Com m is s ions on as s ignm ent of receivables 1 1 .879 8.951 Other revenue from com m is s ions 5.1 40 8.458 Com m is s ions on currency m anagem ent 1 .940 932 Total fee and c om m is ion inc om e 9.242.497 1 0.628.1 06


Com m is s ion expens es :Court cas es 1 .41 3.987 2.081 .424 C redit cards and ATM 1 .788.1 1 8 1 .463.344 P .O.S . 1 .729.992 1 .1 30.1 54 Foreign trade trans actions 77 8.693 Tires ias databas e 360.745 302.890 Com m is s ion expens es and other operations 90.890 86.274 Total c om m is s ion ex pens es 5.383.809 5.072.779

Net c om m is ion inc om e 3.858.688 5.555.327

7. Results of financial operations, dividends and other income Portfolio trans actions gains /los s es

Am ounts in € 31 .1 2.2020 31 .1 2.201 9

Income from dividends 1 1 7,690 30,050

From January 1 s t to

Income from non-banking s erv ices

Am ounts in € 31 .1 2.2020 31 .1 2.201 9

Gain/los s es on financ ial tranactions

Exchange rate gain/los s es 1 30,271 1 38,759 P ublic s ector bonds gain/los s es 3,878,099 4,539,652 Corporate bonds gain/los s es 1 1 ,700 - S hares gain/los s es 6,242 - Total 4,026,31 2 4,678,41 1

Other operating incomeR ental income 384,523 397,527 P roceeds from communication charges 23,948 42,307 S afe-depos its boxes rentals 60,652 51 ,638 P OS leas ing 292,988 263,059 Conference s pace leas e - 800 Total 762,1 1 1 755,331

Total income from non-banking s erv ices 4,788,423 5,433,742


Gains from the disposal of the Greek Government bonds was recognized in the period up to 30.9.2020 and relates to the period before the reclassification of the bonds from fair value through profit or loss to amortized cost portfolio.


8. Payroll expenses The average number of personnel employed in 2020 was 481 persons (2019: 461). S taff fees and expens es

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Wages and s alaries 1 2,871 ,356 1 1 ,671 ,289 S ocial s ecurity contribution 3,089,830 3,046,723 Other s taff cos t 461 ,799 41 0,035 P rovis ion for Bank's employee indemnity 235,932 233,591 Lawyers fees and expens es 499,21 6 408,208 Total 1 7,1 58,1 32 1 5,769,846


9. General administrative expenses General adminis trative expens es

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Third parties fees and expens es 2,251 ,694 1 ,598,607 Telecommunications and pos tage 429,720 630,774 R entals 30,1 1 1 54,302 Ins urance 231 ,1 45 1 82,937 R epair and maintenance 1 ,587,593 1 ,374,092 E lectric ity 376,999 377,253 Water s upply 1 2,31 6 1 3,864 C leaning fees 202,281 1 68,772 Trans portation expens es 76,882 91 ,855 Travel expens es 53,31 4 87,765 Advertis ement and promotion expens es 1 ,1 94,1 28 894,563 S ubs criptions and contributions 300,563 303,830 S tationery 1 1 9,941 1 23,976 P ublication expens es 81 4 37 Travel and s ubs is tence cos ts 1 9,080 20,763 Other contributions - 9,1 1 6 S ecurity 91 ,229 86,723 Cos t of Cas h-in-trans it 1 00,972 90,405 Bond loans is s ue expens es 46,51 8 49,891 Financial cos t of leas ed property (IFR S 1 6) 21 7,902 263,855 Other expens es 298,508 300,61 4 Total 7,641 ,71 0 6,723,994


Deprec iation

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Depreciation of tangible fixed as s ets at operating cos t 1 ,389,91 4 1 ,407,61 7 Amortization of intangible fixed as s ets 367,844 473,863 Amortization of rights -of-us e as s ets IFR S 1 6 821 ,935 749,942 Deprec iation/amortization at operating cos t 2,579,692 2,631 ,422


The fees and expenses of third parties mainly include fees of consultants for financial and legal services. Especially the current year, these costs are increased as they include non-recurring expenses for the prospectus assignment and securitization of a NPEs portfolio. The financial costs in the context of the application of IFRS 16 have been categorized in the General Administrative Expenses and not in the Interest Expenses. Moreover, amortization of the rights-of-use under IFRS 16 is clearly recorded in the above amortization table. Table of correlating leas e expens es Vs IFR S 1 6

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

R eal Es tate leas es not c las s ified under IFR S 1 6 recognition criteria 30,1 1 1 54,302 R eal Es tate leas es recognized under IFR S 1 6 979,039 903,307 Total leas es paid 1 ,009,1 50 957,608

Financial cos t of leas ed property (IFR S 1 6) 21 7,902 263,855 Amortization of rights -of-us e as s ets IFR S 1 6 821 ,935 749,942 Deferred tax (49,674) (24,666) Total 990,1 63 989,1 31


Rentals of buildings that did not meet the recognition criteria under IFRS 16 relate to leases under a residual lease term of less than 12 months.


10. Other operating expenses Other operating expens es

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

S tamp duties on leas es 28,794 24,887 R eal Es tate Tax 1 60,321 1 66,1 37 Other tax and duties 90,093 73,339 Donations and grants 1 67,1 23 79,764 Total 446,332 344,1 27


11. Provisions for impairment of receivables

Prov is ions for c redit ris ks from loans and receivables

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Loans and trade receivables 3,200,000 4.298.766


Provisions are made based on the policy of provisions for impairment applied by the Bank in the context of IFRSs regarding the measurement of expected credit losses, as presented in Note 2.6. 12. Other results Other res ults

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Extraordinary incom eGrants 1 95,1 91 220,206 Us ed provis ions 75,1 85 54,1 08 S urplus of cas h des k accounts 1 ,309 3,888 S urplus of ATMs 371 368 Loan amortization 77,450 497,305 Compens ations from ins urance companies 8,01 5 1 4,581 Other reas ons 1 6,954 1 2,252 Mis cellaneous income from previous years 6 - Total extraordinary income 374,481 802,709

Extraordinary expens es Tax fines and penalties (1 ,695) (8,41 0) Defic its in cas h des k accounts (70) (1 68) Los s from credit / debit cards (28,605) (1 4,691 ) Other (20,1 91 ) (305,767) Third parties fees and expens es from previous years (87) (4,960) Other provis ions from previous years (671 ) - Mis cellaneous expens es from previous years (61 5) - Other provis ions (Tax ins pection differences and arbitration) (590,845) 20,000 Total extraordinary expens es (642,778) (31 3,996)

R es ultsP rofit or los s from dis pos al of property - (395,024) Los s on dis pos al of furniture and equipment - (1 2,546) P rofit on dis pos al of furniture and equipment 1 6,001 81 Total 1 6,001 (407,488)

Total other extraordinary res ults (252,295) 81 ,224


In 2020, grants mainly concern the subsidy from the Greek State for personnel costs in compliance with the provisions of article 4 of the Legislative Act 1/3/2020 (A’55), as well as the subsidy of the sick leave of the staff. Other profit / (los s ) from valuation

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

From inves tments in partic ipating interes ts 752,975 (49,538) From valuation of lis ted s hares (1 ,496) From valuation of financial as s ets at amortized cos t (475,567) - From valuation of financial as s ets at fair value through profit or los s - 21 7,451 From inves tment property - (1 1 7,1 37) P rofit or los s from currency valuation (24,354) Total 251 ,557 50,777



13. Deferred tax and other tax charges The effect of income tax on profit or loss of the year is as follows: Income Tax

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Deferred tax (expens e) 236,346 (1 ,972,302) Deferred tax of items of comprehens ive income (8,457) 1 5,976 Deferred tax income / (expens e) 227,889 (1 ,956,326)


The Bank has been inspected by the tax authorities until the fiscal year 2010, while the FYs 2011 – 2014 assumed as expired. Accumulated provisions for non-inspected financial years as at 31.12.2020 amount to € 350.000.

Deferred tax recognized in the Statement of Comprehensive Income is analyzed as follows: Deferred tax income / (expens e)

Ποσά σε ευρώ 31 .1 2.2020 31 .1 2.201 9

Valuation of financial ins truments 66,359 79,232 Balance of provis ions for Credit R is k 8,469,639 2,075,279 Difference at income (21 ,221 ) (23,537) Valuation of own-us ed fixed as s ets 50,797 (1 ,505) Valuation of foreclos ed inves tment property and real es tate - 45,895 Cos ts of is s uing bond loans (1 3,490) (1 4,468) R ecognition of rights -of-us e as s ets IFR S 1 6 (1 7,631 ) (32,042) Other temporary differences (25,278) 68,1 04 P rovis ion for Bank's employee indemnity (46,61 7) (52,050) P S I los s 21 7,21 0 21 7,21 0 Deferred tax as s et from deductible tax los s es (8,609,455) (389,81 6) Total in the Income S tatement (236,346) 1 ,972,302

Deferred tax on actuarial profit / (los s ) 8,457 (1 5,976) Total in the S tatement of comprehens ive income (227,889) 1 ,956,326


14. Basic earnings per cooperative share Earnings per s hare

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Net profit after tax 935,21 9 4,275,1 29 Weighted average number of s hares 7,895,737 7,876,550 B as ic earnings per s hare 0.1 1 8 0.543


Pursuant to IAS 33, paragraphs 41-44, potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations. Potential shares arising from the Bank's convertible bond loan lead to an increase in earnings per share, with the result that it is not considered to have an antidilution effect. Therefore, the impaired earnings per share for the year 2020 are equal to the basic earnings per share. 15. Cash and balance with the Central Bank Cas h and B alances with Central B ank

Am ounts in euro

Cas h on hand 1 1 ,1 84,595 1 1 ,71 0,699 Cas h-in-trans it activities 730,000 320,000 Cheques receivables from the Central Bank 3,522,31 3 5,261 ,442 Depos its at Central Bank 1 39,238,282 297,700,496 Total 1 54,675,1 90 31 4,992,636

31 .1 2.2020 31 .1 2.201 9

The Bank holds a current account with the Bank of Greece, in order to facilitate interbank transactions. The deposits are interest bearing, regarding the refinancing interest defined by the European Central Bank, which as at 31.12.2020 was zero. For the purpose of preparation of cash flow statement, cash and cash equivalents include balances of accounts «Cash and balances with central banks» and «Receivables from banks», with maturities of less than three months from the date of acquisition.

16. Receivables from credit institutions Receivables of the Bank from deposits and transactions with other credit institutions are analyzed as follows:


Due from c redit ins titutions

Am ounts in euro

S ights depos its in € 31 ,958,547 6,392,584 S ight depos its in $ 809,41 8 869,541 Other receivables (term depos its in $) 3,259,71 8 71 2,1 24 Total 36,027,683 7,974,249

31 .1 2.2020 31 .1 2.201 9

As at 31.12.2020, the Bank’s deposits in dollars stand at $ 4.993.237.

17. Financial assets

Financial ins truments at fair value through profit and los s

Am ounts in euro

Inves tments in equity interes t bus ines s es

Other inves tments and long-term s ecurities 30,1 78 98,000

S hares and long-term variable yield s ecurities Inves tments and long-term s ecurities 4,225,379 3,242,71 8 S hares 1 3,288 37,522 Corporate bonds - 1 3,575,061

4,238,667 1 6,855,301

Total 4,268,844 1 6,953,301

31 .1 2.2020 31 .1 2.201 9

Shares concern mainly participation in the Cooperative Insurance AEGA (8.31%) the DIAS interbank system S.A. and VISA EUROPE LIMITED.

Financial as s ets at amortized cos t

Am ounts in euroP ublic S ector Bonds 479,993,71 1 Corporate bonds 52,564,1 44 Total 532,557,855 -

31 .1 2.2020 31 .1 2.201 9

In 2020 and based on a relevant decision of the Board of Directors of Pancreta Bank, it was decided to change the business model regarding corporate and Greek government bonds purchased within the year. In particular, since these financial assets are used as collaterals in order to obtain the targeted long-term refinancing of the ECB (TLTRO), there was a change in the Bank's business model regarding these financial assets. Therefore, it was decided to hold them with the aim of collecting their contractual cash flows (capital and interest payments). In the context of the above decision, on 1.10.2020 these financial instruments were reclassified from measured at air value through profit or loss to amortized cost portfolio. The reclassification has not affected the income statement.

The Banks transactions in respect of the corporate bonds and the Greek State Bonds in 2020 are as follows:


Corporate Bonds

Am ounts in euro Valued at Fair

ValueValued at

am ortized c os t Valued at

am ortized c os t

Balanc e 01 .01 Nom inal value - 1 3.387.000 1 3.387.000 Goodwill - (25.960) (25.960) Fair value m eas urem ent res ult - 21 4.021 21 4.021 Total - - 1 3.575.061 1 3.575.061

Changes for the year Acquis itions (Nom inal value ) 1 26.275.000 525.1 62.000 42.61 4.000 694.051 .000 Goodwill paid at the acquis ition 24.029.971 1 2.242.093 (1 55.200) 36.1 1 6.864 Accrued interes t paid at the acquis ition 1 .987.932 3.049.998 50.871 5.088.801 Net ac quis ition value 1 52.292.903 540.454.091 42.509.671 735.256.666

Dis pos als 1 26.275.000 60.000.000 3.000.000 1 89.275.000 Goodwill received at the dis pos al 27.908.070 (58.700) 30.000 27.879.370 Accrued interes t received at the dis pos al 1 .1 38.1 09 - 1 0.686 1 .1 48.795 Net dis pos al value 1 55.321 .1 79 59.941 .300 3.040.686 21 8.303.1 65

Interes t/coupons for the period 606.844 74.685 778.830 1 .460.359 P rofit / (Los s ) from dis pos al 3.878.099 - 1 1 .700 3.889.799 Valuation res ult for the period - (475.567) (475.567) Total res ults for the period 4.484.943 74.685 31 4.963 4.874.591

Balanc e 31 .1 2Nom inal value - 465.1 62.000 53.001 .000 51 8.1 63.000 Goodwill - 1 2.300.793 (1 58.1 50) 1 2.1 42.643 Accrued interes t paid - 3.049.998 24.1 50 3.074.1 48 R eadjus tm ent under effective interes t rate (51 9.080) - (51 9.080) Valuation res ult at am ortized cos t - (302.856) (302.856) Total - 479.993.71 1 52.564.1 44 532.557.855

Greek S tate Bonds and Corporate Bonds Greek S tate

31 .1 2.2020

Total


Loans and advances to customers Loans and other trade receivables

Loans per category

Am ounts in thous and euro 31 .1 2.2020 31 .1 2.201 9

Corporate 1 ,358,1 22 1 ,264,1 58 Trade 365,646 331 ,376 Touris m/Hotels 292,636 253,648 Indus try/Manufacture 252,572 248,91 1 Cons truction 206,973 202,506 Agriculture/Fis hery/Animal breeding 36,730 36,665 Food 36,820 35,445 Energy / P hotovoltaic 31 ,61 8 29,829 S ervices / Freelancers 29,429 29,721 Other 27,420 1 6,006 Trans portation and S torage 1 9,1 34 1 7,983 R eal Es tate Management 1 7,280 1 7,242 Munic ipalities / Civic Organizations 1 2,624 1 5,507 Telecommunications /IT/Media 1 3,694 1 3,585 S hipping 7,864 8,502 Healthcare S ervices 3,365 3,241 Water s upply and was te management 2,804 2,532 Ins urance/Banking 1 ,51 2 1 ,462

Mortgage 1 35,303 1 39,208 Cons umer 78,208 79,636 Total 1 ,571 ,633 1 ,483,002

Other receivables


R eceivables from L/G commis s ions 1 ,288 2,023

Total loans and other trade receivables 1 ,572,921 1 ,485,025


Over trhree (3) months and until one (1 ) year 1 ,288 2,023Over one (1 ) year - - Total 1 ,288 2,023


The account of allowances for impairment of loans is as follows (further analysis is presented in Note 4.4.1): Changes in allowances for impairment of loans

Am ounts in thous and euroB alance as at January 1 339,997 370,951 Write off (203) (35,252) Allowance for the period 3,200 4,299 B alance as at December 31 342,995 339,997

31 .1 2.2020 31 .1 2.201 9

€ / % %

Loans and other trade receivables 1 ,572,921 ,1 35 1 ,485,025,374 87,895,761 5.92%Accumulated provis ions for credit ris k 342,994,691 339,997,395 2,997,296 0.88%Loans coverage 1 ,088,084,1 04 1 ,051 ,038,246 37,045,857 3.52%Loans delayed (over 90 days ) 845,555,426 690,1 1 7,961 1 55,437,465 22.52%Denounced loans 384,084,864 344,866,552 39,21 8,31 2 1 1 .37%NP Es 974,1 86,478 941 ,734,1 91 32,452,287 3.45%Loans delayed (%) 53.76% 46.47% 7.29% 1 5.68%Denounced loans / Loans 24.42% 23.22% 1 .20% 5.1 5%NP Es / Loans 61 .93% 63.42% -1 .48% -2.33%P rovis ions / Loans 21 .81 % 22.90% -1 .09% -4.76%P rovis ions / Loans delayed over 90 days 40.56% 49.27% -8.70% -1 7.66%NP Es coverage rate 35.21 % 36.1 0% -0.90% -2.48%Collaterals to loans 69.1 8% 70.78% -1 .60% -2.26%Collaterals + P rovis ions / Loans 90.98% 93.67% -2.69% -2.87%



Tangible assets Changes in the account of tangible assets are as follows:

Own-us ed Tangible As s ets (Am ounts in euro)

Land P lotsBuildings and installationsΚ

Mechanical Equipm ent and

Vehic les

Furniture and fix tures

Assets under construc tions

Total ow n-used fix ed assets

Rights of use assets IFRS 1 6

Total

Acquis ition value

Opening balance as at 1 January 201 9 7,871 ,000 23,207,632 41 0,561 1 2,889,522 6,1 66 44,384,881 - 44,384,881 Additions - 560,799 3,379 949,543 1 ,984 1 ,51 5,705 5,41 1 ,657 6,927,362 Dis pos al / write offs - (835,757) (6,650) (1 46,81 3) - (989,220) - (989,220) B alance as at 31 December 201 9 7,871 ,000 22,932,674 407,290 1 3,692,253 8,1 50 44,91 1 ,366 5,41 1 ,657 50,323,023 Accumulated deprec iationOpening balance as at 1 January 201 9 - (1 2,462,440) (344,583) (1 0,549,234) - (23,356,257) - (23,356,257) Depreciation - (700,31 6) (7,881 ) (699,420) - (1 ,407,61 7) (749,942) (2,1 57,558) Dis pos al / write offs - 763,065 2,771 1 30,058 - 895,894 - 895,894 B alance as at 31 December 201 9 - (1 2,399,690) (349,694) (1 1 ,1 1 8,596) - (23,867,980) (749,942) (24,61 7,922) Net B ook Value as at 31 December 201 9 7,871 ,000 1 0,532,984 57,596 2,573,657 8,1 50 21 ,043,386 4,661 ,71 5 25,705,1 02

Own-us ed Tangible As s ets

Own-us ed Tangible As s ets (Am ounts in euro)

Land P lotsBuildings and installationsΚ

Mechanical Equipm ent and

Vehic les

Furniture and fix tures

Assets under construc tions

Total ow n-used fix ed assets

Rights of use assets IFRS 1 6

Total

Acquis ition valueOpening balance as at 1 January 2020 7,871 ,000 22,932,674 407,290 1 3,692,253 8,1 50 44,91 1 ,366 5,41 1 ,657 50,323,023 Additions - 686,204 1 ,326,326 2,01 2,530 1 ,396,31 5 3,408,845 Trans fers - 1 ,984 (1 ,984) - - - Other changes due to change in interes t rate - 1 ,255,21 6 1 ,255,21 6 Dis pos al / write offs - (1 1 ,962) (1 1 ,962) - (1 1 ,962) B alance as at 31 December 2020 7,871 ,000 23,620,862 395,328 1 5,01 8,579 6,1 66 46,91 1 ,934 8,063,1 88 54,975,1 22 Accumulated deprec iationOpening balance as at 1 January 2020 - (1 2,399,690) (349,694) (1 1 ,1 1 8,596) - (23,867,980) (749,942) (24,61 7,922) Depreciation - (649,564) (8,328) (732,022) - (1 ,389,91 4) (846,427) (2,236,340) Other changes (0) 0 0 1 0,1 30 1 0,1 30 Dis pos al / write offs - 25,741 - 25,741 25,741 B alance as at 31 December 2020 - (1 3,049,253) (332,281 ) (1 1 ,850,61 8) - (25,232,1 52) (1 ,586,238) (26,81 8,391 ) Net B ook Value as at 31 December 2020 7,871 ,000 1 0,571 ,608 63,047 3,1 67,961 6,1 66 21 ,679,782 6,476,949 28,1 56,731

Own-us ed Tangible As s ets

Real estate property of the Bank was valued at 31.12.2016 at fair value by independent appraisers in compliance with the professional criteria. The fair values of owned property are classified into Level 2 in terms of the fair value hierarchy. Taking into account market data, the management does not consider that there has been a significant change in fair value since the last valuation, nor does it consider that losses have arisen from valuation at present values due to the upward trend of the real estate market in recent years. There is no capitalized interest under IAS 23. There are no liens on the real estate of the Bank. There are no tangible assets under finance leases.

18. Investment property Investment property of the Bank is valued by independent appraisers in compliance with the professional criteria. The fair values of investment property are mainly determined applying the Comparative Method and are classified into Level 2 in terms of the fair value hierarchy. Taking into account market data, the management does not consider that there has been a significant change in fair value since the last valuation, nor does it consider that that losses have arisen from valuation at present values due to the upward trend of the real estate market in recent years. Rental income for the year 2020 amounted to € 384,523 (2019: € 397,527) and has been recognized in other operating income.

2020 201 9

Acquis ition value

Opening balance 1 January 1 5,667,000 1 5,667,000 Additions - - Fair value meas urement differences - - R evers als / R eclas s ifications - - B alance as at 31 December 1 5,667,000 1 5,667,000

Land plots - B uildings Inves tment property (Am ounts in euro)


19. Intangible assets

2020 201 9

Acquis ition value

Opening balance 1 January 6,663,1 05 5,71 2,289 Additions 785,572 950,81 6 Decreas es and write offs - - B alance as at 31 December 7,448,676 6,663,1 05

Accumulated amortization

Opening balance 1 January (3,939,290) (3,465,427) Amortization (367,844) (473,863) Decreas es and write offs 6 - B alance as at 31 December (4,307,1 28) (3,939,290)

Net B ook Value as at 31 December 3,1 41 ,548 2,723,81 5

Intangible as s ets (Am ounts in euro)

S oftware

20. Deferred tax assets Deferred Tax As s ets - L iabilities

Am ounts in euro

Valuation of financial ins truments (430,554) (364,1 96) Balance of provis ion for credit ris k 1 5,061 ,291 23,530,930 Categorization of revenue (777,648) (798,869) Valuation of own-us ed fixed as s ets (1 ,577,563) (1 ,526,766) Valuation of foreclos ed inves tment property and real es tate 554,21 2 554,21 2 Expens es of bond loans is s ue (24,308) (37,798) R ecognition of rights -of-us e as s ets IFR S 1 6 49,674 32,042 Other provis ional differences 25,278 - P rovis ion for employee compens ation 798,752 760,593 Deferred tax on temporary differences a 1 3,679,1 34 22,1 50,1 48 P S I los s b 4,561 ,41 0 4,778,620 Deferred tax as s et Ar. 27 L. 41 72/1 3 (credit ris k) c 40,537,525 40,230,867 Deferred tax as s et from deductivle tax los s es d 9,1 21 ,841 51 2,386 Total deferred tax as s et a+b+c+d 67,899,909 67,672,021

31 .1 2.2020 31 .1 2.201 9

The deferred tax assets from deductible tax losses are expected to be finalized at the time of submission of the income tax return. Categorization of Deferred Tax As s ets

Am ounts in euro

Deferred tax as s ets not bas ed on future profitability (Artic le 27a L.41 72/201 3) 45,098,935

Deferred tax receivables that are bas ed on future profitability and do not res ult from temporary differences (Artic le 27 L.41 72/201 3)

9,1 21 ,841

Deferred tax receivables bas ed on future profitability aris ing from temporary differences

1 3,679,1 34

Total 67,899,909

This category includes deferred tax as s ets :a) P S I los s (Art. 27 L.41 72/201 3) b) the accumulated credit ris k prov is ions referred to in Artic le 27a L.41 72/201 3c) the debit difference of par. 3 Artic le 27 L. 41 72/201 3 as it falls s hort of the difference in credit ris k that is included in artic le 27 of the s ame law.

This category includes deferred tax as s ets from trans ferred tax los s es

This category includes deferred tax as s ets and liabilities from other provis ional differences

31 .1 2.2020 Analys is / Explanations

Deferred tax has been calculated on the basis of the nominal tax rate at which the temporary taxable and deductible differences are expected to be offset. Deferred tax assets are recognized only in the extend that is reasonably expected to be offset by future taxable income. Based on its estimates, the Management assumes that there will be future taxable profits that can be used against these losses. The amount of deferred tax assets relate to:

• Allowances for credit risk whose settlement does not have a fixed maturity • The loss incurred from PSI due to Government Bond exchange is tax deductible over a total of 30 years

(to the year 2042). • Debit balances under par. 3, Article 27, Law 4172/2013 from write-off of loans subject to twenty (20)

years of depreciation.


Following the decision of the Extraordinary General Meeting held on March 19, 2016, the Bank was introduced into the provisions of the special regime under Article 27A, Law 4172/2013, as amended through Article 4, Law 4340/2015 on voluntary conversion of deferred tax assets, on temporary differences, to final and under liquidation assets versus the Greek State. For the purposes of applying the aforementioned provisions and in order to undertake the relevant corporate actions, a resolution of the General Meeting is required, made under the increased quorum and majority as specified in Law 1667/1986 in respect of the cooperative capital increase following the special recommendation of the Board of Directors. The decision pertains to formation of special reserves and the free issue of certificates verifying acquisition rights of common shares or cooperative shares (conversion rights) in favor of the Greek State. Income tax, attributable to temporary differences relating to: a) the remaining (unamortized) amount of the debit difference (PSI) under paragraph 2, Article 27, which has arisen at the expense of the legal entities supervised by the Bank of Greece under paragraphs 5, 6 and 7, Article 26 and b) the amount of accumulated provisions and other general losses caused by the credit risk, which were accounted for as till June 30, 2015, regarding the abovementioned legal entities receivables, for which a definition of "deferred tax assets" has been used or will be used in accordance with the provisions of the International Financial Reporting Standards (IFRS) and Law 4172/2013 and which is presented in in the last annual financial statements, prepared under IFRS, audited by statutory auditors and approved by the General Meeting of Shareholders, is converted, in whole or in part, on case basis, into final and liquidated receivables versus the Greek State, in the event the legal entity’s earnings after tax record losses in compliance, as mentioned above, with the last annual financial statements, audited by statutory auditors and approved by the General Meeting of Shareholders. The amount of the final and liquidated receivable is defined through multiplying the total amount of deferred tax asset, as mentioned above, by the percentage that represents accounting loss, after taxes, regarding Total Equity, as stated in the respective annual separate financial statements of the legal entity which have been prepared for the relevant fiscal year, not including the accounting loss for the year [Tax Asset = (Amount of Deferred Tax Asser in the Financial Statements * Accounting Loss for the Year After Tax) / (Equity - Accounting, Loss for the Year After Tax)]. The receivables described are incurred at the time of approval of the respective annual corporate financial statements by the Annual General Meeting of shareholders and is offset against the income tax of the tax year of the legal entity that publishes the approved financial statements. In order to achieve offsetting with the corresponding income tax, the legal entity can timely submit supplementary tax returns within one month from the date of incurring the receivables under the provisions of the abovementioned Article. In case the corresponding income tax for the tax year, within which the accounting loss was incurred, is not sufficient to facilitate full settlement of the receivables and to the extent that a certain part of the receivable has not been offset, the legal entity has directly collectible receivables against the Greek State in respect of this outstanding part of the initial receivables. This receivable is covered within one (1) month after the submission (initial or additional) of income tax return. Thus, the legal entity issues free certificates representing acquisition rights of common or cooperative shares (conversion rights), which are owned by the Greek State and correspond to shares or cooperative shares of total market value equal to one hundred percent (100%) of the amount of the final and liquidated tax assets prior to its offsetting with the income tax of the tax year in which the accounting loss was incurred. The market value of shares or cooperative shares is defined as their intrinsic accounting value, which arises from the last legally prepared balance sheet of the entity, taking into consideration all the comments recorded in the Independent Auditor’s Report. Conversion rights are exercised without paying the relative consideration, through capitalization of the special purpose reserves. Provisions of Article 27Α pertain to tax assets incurred in or after fiscal year 2017 and regarding tax year 2016 and further. An exemption is provided in the event of bankruptcy, special liquidation or liquidation of the legal entity, when the tax asset is incurred given that bankruptcy, special liquidation or liquidation occurred after the current Law publication date. The highest balance of deferred tax asset that can, under the provisions of Article 27Α, Law 4172/2013, be converted into final and liquidated receivables against the Greek State amounts to approximately € 45.1 million.

Diffe re nc e s De fe rre d tax Diffe re nc e s De fe rre d tax

P S I los s 1 9,848,500 5,756,065 1 5,729,000 4,561 ,41 0 Difference in accumulated credit ris k provis ions 1 39,784,568 40,537,525 1 39,784,568 40,537,525Total 1 59,633,068 46,293,590 1 55,51 3,568 45,098,935

31 .1 2.2020Deferred tax as s et under Artic le 27Α L.41 72/201 3

30.06.201 5


Cl as s i f i c at i on per c at egor y f or s uper vi s or y r epor t s

Amount s i n Eur o PSI l os s

Ar t . 27 Law 41 72/ 201 3

Ac c r ued pr ovi s i ons f or c r edi t

r i s k

Ot her ac c r ued pr ovi s i ons f or c r edi t

r i s k

Fr om deduc t i bl e t ax l os s es

Ot her pr ovi s i onal di f f er enc es

Tot al

Def er r ed t ax as s et s not bas ed on f ut ur e pr of i t abi l i t y 4, 561 , 41 0 37, 966, 1 75 2, 571 , 349 45, 098, 935 Def er r ed t ax as s et s bas ed on f ut ur e pr of i t abi l i t y and not ar i s i ng f r om pr ov i s i onal di f f er enc es

9, 1 21 , 841 9, 1 21 , 841

Def er r ed t ax as s et s bas ed on f ut ur e pr of i t abi l i t y and ar i s i ng f r om pr ov i s i onal di f f er enc es

1 5, 061 , 291 - ( 1 , 382, 1 57) 1 3, 679, 1 34

Tot al 4, 561 , 41 0 37, 966, 1 75 1 7, 632, 640 9, 1 21 , 841 ( 1 , 382, 1 57) 67, 899, 909

Def er r ed t ax as s et s / ( Li abi l i t i es ) f r om

21. Other assets Other assets are analyzed as follows: Other As s ets

Am ounts in euro

Depos it Guarantee Fund 36,873,920 36,863,91 8 Accrued interes t on loans 4,1 30,497 3,785,623 Other receivables and advances 2,1 24,51 6 2,1 87,585 R eceivables from dis pos al of foreclos ed real es tate 1 ,708,031 1 ,661 ,51 0 Income tax advance of prior years 800,922 898,597 P repaid expens es 91 8,986 877,282 Other accrued interes t income 636,535 8,1 36 Accrued revenue from s ecurities 1 ,062,095 83,976 Accrued commis s ion income 1 03,705 1 71 ,782 Collectible income from s im ilar activities 1 2,986 - Advances to pers onnel 70,237 1 01 ,653 Total 48,442,428 46,640,061

31 .1 2.2020 31 .1 2.201 9

Law 4370/2016 “Deposit Guarantee Scheme” (DGS) incorporates into the Greek Legislation the Directive 2014/49/EU of the European Parliament as of April 16, 2014 (EU L 173), on contributions to deposit guarantee schemes and on payment commitments and establishes new regulations regarding all the DGSs that provide similar level of deposits protection within the EU. The Hellenic Deposit and Investment Guarantee Fund (herein after T.E.K.E.) manages the bank deposits and investing services guarantees system and has been designed to (a) compensate depositors of credit institutions authorized in Greece that fail to fulfill their obligations, (b) compensate investor customers of credit institutions authorized in Greece, which do not participate in the mutual Guarantee Fund and are unable to fulfill their obligations arising from the provision of investment services and (c) finance credit institutions during the implementation of the consolidation measures. Chapter Β, Law 4370/2016 defines the credit institutions obligation regarding their participation in Τ.Ε.Κ.Ε. (Article 4, par. 3 and Article 15, Directive 2014/49/EU ), while Article 9 of the aforementioned Law defines the ceiling for guaranteed deposits in respect of every credit institution covered by Τ.Ε.Κ.Ε. as an amount of € 100.000 (a hundred thousand euro). The ceiling is effective regarding the total deposits held at the same credit institution, notwithstanding the number, the currency and the place of keeping deposits within the European Union.

22. Foreclosed assets

2020 201 9

Acquis ition value

Opening balance 1 January 1 3,538,1 90 1 3,429,421 Additions 1 56,539 2,505,905 Decreas es - (447,1 37) Dis pos al and write offs - (1 ,950,000) B alance as at 31 December 1 3,694,729 1 3,538,1 90

Forec los ed As s ets(Am ounts in euro)

Land plots - buildings

23. Liabilities to central banks Due to central banks

Am ounts in euro

Depos its of ECB with collateral Greek S tate Bonds & Loans 420,000,000 - Total 420,000,000 -

31 .1 2.2020 31 .1 2.201 9


Pancreta Bank has participated in the targeted long-term refinancing operations (TLTROs III) with an amount of 420 million euro. The term of financing is three years from 30.09.2020 to 27.09.2023, with the possibility of repayment from 29.09.2021 and every subsequent quarter. The following collaterals were used in order to secure the Bank's participation: a) Greek government bonds and interest-bearing bonds (EGED) of a nominal value of 450 million euro, as well as b) loan portfolio totaling 156.8 million euro of a valuation value of 75, 3 million euro (after the cut implemented by the Bank of Greece). Through this participation the bank achieves as follows: a) Total revenue 4.85 million euro (0.65 million euro in 2020 and 4.2 million euro in 2021). b) Increase in liquidity by 77.6 million euro, making use of the tools provided by the BoG (with the permission of the ECB) in the context of the pandemic - using existing loans. This liquidity can be used either to provide loans or to replace higher cost liquidity. 24. Liabilities to other credit institutions Liabilities to Other Credit Ins titutions

Am ounts in euro

Long-term liabilities to other credit ins titutions (European Inves tment Bank) 1 26,358,668 1 39,992,649

S hort-term liabilities to other credit ins tituitions (European Inves tment Bank) 21 ,1 1 6,464 22,344,684

S ight depos its of credit ins titutions 1 ,809,347 3,262,982

Total 1 49,284,479 1 65,600,31 5

31 .1 2.2020 31 .1 2.201 9

25. Liabilities to customers Deposits and other customers’accounts are as follows: Liabilities to cus tomers

Am ounts in euroS ight depos its 377,977,643 365,454,876 S aving depos its 335,905,51 2 277,1 74,965 Term depos its 692,531 ,463 686,1 50,505 S ight depos its in $ 47,848 41 7 S aving depos its in $ 274,773 1 04 Term depos its in $ 3,708,945 1 ,81 4,892 Cheques and orders payable 3,784,381 3,499,029 Total 1 ,41 4,230,566 1 ,334,094,788

31 .1 2.2020 31 .1 2.201 9

As at 31.12.2020, customers deposits in dollars stood at $ 4.993.237.

The increase in customer deposits proves the improvement of the climate of confidence to the Bank and is the basis for restoration of liquidity of the Bank and development of its operations. 26. Debt securities and other borrowed funds Credit s ecurities and other loan liabilities

Am ounts in euro

P ancretan Bond of is s ue 201 5 s ubordinated 23,500,000 23,500,000 Les s : B ond is s ue cos ts (51 ,803) (80,324) P ancretan Bond of is s ue 201 5 convertible into s hares 1 5,1 00,000 1 5,1 00,000 Les s : B ond is s ue cos ts (32,01 7) (50,01 5) P ancretan Bond of is s ue 201 8 s ubordinated 9,400,000 9,400,000 Total 47,91 6,1 79 47,869,661

31 .1 2.2020 31 .1 2.201 9


Is s ued 201 8

S ubordinated B ond (public)

Convertible B ondS ubordinated B ond

(public)

Terms Terms Terms

R eleas e date 21 /1 2/201 5 21 /1 2/201 5 31 /1 2/201 8Expiration date 21 /1 2/2022 Indefinite term 31 /1 2/2025Years - ins tallments one-off in the 7th year one-off in the 7th yearAmount 23,500,000.00 1 5,1 00,000.00 9,400,000.00Nominal value of bond 1 00,000.00 1 00,000.00 1 00,000.00Number of bonds 235 1 51 94Interes t rate 6.50% 8.00% 6.50%P ayment of interes t annually / 365 days annually / 365 days annually / 365 daysIs s ue cos ts 21 4,730.72 1 37,975.91 0.00Effective rate 6.668% 8.1 77% 6.500%

R ecognition in R egulatory Capital Tier II Tier II T ier I T ier II

B onds

Terms

Is s ued 201 5

It is pointed out that on 31.03.2021, in order to strengthen the supervisory equity and facilitate further de-escalation of the financing cost, the Bank proceeded with early repayment of the 7-year Subordinate Common Bond Loan, issued on 23.12.2015 and amounting to 23.5 million euro with simultaneous issuance of a new corresponding bond of 23.5 million euro with an interest rate of 6%. 27. Employee benefits obligations Employee benefits obligations pertain to the amount of pension payment arising from the provision for employee indemnity formed on annual basis and are analyzed as follows:

Changes in the pres ent value of the obligation

Am ounts in €P res ent value of the obligation at the beginning of the period 2,622,733 2,388,1 62Current employment cos t 1 93,968 1 97,769Interes t cos t 41 ,964 35,822Term ination benefits 1 76,663 88,662 Benefits paid by employer (251 ,848) (1 42,770) Actuarial los s (29,1 63) 55,088 Pres ent value of the obligation at the end of the period 2,754,31 7 2,622,733

31 .1 2.2020 31 .1 2.201 9

Change in net obligation

Am ounts in €Net obligation at the beginning of the period 2,622,733 2,388,1 62 Benefits paid by employer (251 ,848) (1 42,770) Expens e recognis ed in the Income S tatement 41 2,594 322,253 Amount recorded in the S tatement of Comprehens ive Income (29,1 63) 55,088 Net Obligation at the end of the period 2,754,31 7 2,622,733

31 .1 2.2020 31 .1 2.201 9

Expens e recognis ed in the Income S tatement

Am ounts in € 1 .1 -31 .1 2.2020 1 .1 -31 .1 2.201 9

Current employement cos t 1 93,968 1 97,769 Interes t cos t 41 ,964 35,822 Term ination benefits 1 76,663 88,662 Total Expens e R ecognized in the Income S tatement 41 2,594 322,253 Amounts recognized in the S tatement of Comprehens ive Income

Am ounts in € 1 .1 -31 .1 2.2020 1 .1 -31 .1 2.201 9

Actuarial (profit) los s in the obligation due to financial as s umptions 31 8,077 55,088 Actuarial (profit) los s in the obligation due to demographic as s umptions (31 3,888) - Actuarial (profit) los s in the obligation due to experience (33,352) - Cummulative amount in other comprehens ive income (29,1 63) 55,088

These results depend on the assumptions (economic and demographic) development of an actuarial study. The main actuarial assumptions used for accounting purposes are the following:


Technical interes t rateFuture s alary growth Inflation rateMortality table Net percentage of pers onnel withdrawal (res ignations les s dis m is s als )

Average retirement age:Men & Women Heavy - Unhealthy Men & Women Other Ins urance Categories

Valuation date

Ins ured group s tructure

Ins urance fund property

62 years old67 years old

Clos ed: as s umed zero entry of people

zero

31 /1 2/20

1 .0%EVK 2000

0.0%

Key actuarial as s umptions us ed for accounting purpos es are as follows :

1 .0%1 %

Sensitivity analysis regarding actuarial liability as at 31.12.2020:

Parameter Changes Liability 31 .1 2.2020Change in relation to B as ic Valuation

Technical interes t rate 0.50% 2,485,955 -268,362Technical interes t rate -0.50% 3,055,784 301 ,467Future s alary growth 0.50% 3,052,471 298,1 54Future s alary growth -0.50% 2,485,098 -269,21 9

28. Other liabilities Other liabilities are analyzed as follows: Other liabilities

Am ounts in euroP roceeds on behalf of third parties 2,659,260 9,590,266 Liabilities from unus ed loans (5,324) 52,973 Cheques as covers for collection 2,674,027 4,1 97,903 Accrued interes t and commis s ions 1 ,356,1 79 1 ,703,307 P roceeds from foreclos ed items on hold 689,986 81 1 ,089 Liabilities from tax and duties 1 ,302,982 1 ,363,755 P ayables to s uppliers 2,21 9,237 1 ,622,366 Liabilities to ins urance ins titutions 796,704 759,460 Other liabilities 1 72,872 659,027 Levy according to Law 1 28/75 280,503 338,61 1 Depos it Guarantee Fund 41 4,844 397,590 P rovis ions for ris ks and liens 590,000 350,000 Telephone - electric ity - P os tal 41 ,054 1 04,267 Liabilities from cards s ettlement 481 ,586 922,337 Other accrued expens es (2,740) 63,752 R eceivables from s im ilar activities 1 ,750 - Total 1 3,672,920 22,936,702

31 .1 2.2020 31 .1 2.201 9

Prov is ion for ris ks and liens

Am ounts in euro P rovis ions for ris ks and liens (for non ins pected tax years ) 350,000 350,000 P rovis ions for legal dis putes 240,000 - Total 590,000 350,000

31 .1 2.2020 31 .1 2.201 9

29. Share capital

S hare capitalNumber of

s hareNominal value

Capital

Opening balance as at 1 January 201 9 7,855,395 5 39,276,975Net capital increas e 38,961 5 1 94,805B alance as at 31 December 201 9 7,894,356 5 39,471 ,780Net capital increas e 5B alance as at 31 December 2020 7,894,356 5 39,471 ,780


On May 28, 2020, the General Meeting of Shareholders voted in favor of transformation of the Bank from a credit cooperative to a Societe Anonyme. This transformation had no effect on its financial statements with the ratio of shares and new shares being 1: 1. Consequently, the share capital of the Bank at the date of the transformation amounted to € 39,471,780 divided into 7,894,356 shares of a nominal value € 5 per share. An Extraordinary General Meeting of Shareholders, held on December 9, 2020, decided to increase the Share Capital of the Bank by € 11,560.00, with the issuance of (2,312) new common registered shares with voting rights, of nominal value € 5.00 each and offering price € 8.00 each. As a consequence of the above increase, the share capital of the Bank will stand at 39,483,340 euro, divided into 7,896,668 common registered shares, with voting rights, of a nominal value € 5 each. However, since on 31.12.2020 the aforementioned increase had not been certified in accordance with the provisions of article 20 of Law 4548/2018, it was deemed appropriate to record the amounts paid up to that date (€ 18,496) in a separate account as "Amounts intended for capital increase". 30. Share premium S hare premium

Opening balance as at 1 January 201 9 1 36,700,81 4 Net capital increas e 1 1 6,883 B alance as at 31 December 201 9 1 36,81 7,697 Net capital increas e B alance as at 31 December 2020 1 36,81 7,697 31. Other reserves, retained earnings Other res erves

Am ounts in euroLegal res erves 1 5,1 05,1 53 1 5,1 05,1 53 s tatutory res erves 7,552,576 7,552,576 S pecial s ubs cription res erve 3,1 57,839 3,1 57,839 Extraordinary res erves 36,581 ,805 36,581 ,805 Tax free res erves from profit taxed purs uant to s pecial way 2,995,699 2,995,699 Tax free res erves from tax exempt profits 845,559 845,559 Taxed res erves of Law 2238/1 994 Arti. 1 06 3,006,992 3,006,992 R evaluation res erves under IAS 1 6 1 ,853,591 1 ,853,591 Total 71 ,099,21 3 71 ,099,21 3

31 .1 2.2020 31 .1 2.201 9

R etained Earnings

Am ounts in euroR etained earnings (77,693,888) (78,629,1 07) Los s es carried forward - E ffect of trans ition to IFR S (89,761 ,635) (89,761 ,635) Total (1 67,455,523) (1 68,390,742)

31 .1 2.2020 31 .1 2.201 9

31 .1 2.2020 31 .1 2.201 9

R etained earnings (1 06,21 3) (1 26,91 9) Fair value res erve and other res erves (5,729,988) (5,729,988) Total (5,836,201 ) (5,856,907)

Amount directly in Equity through OCIB alances

Statutory reserve is formed according to article 158, of law 4548/2018, according to which every year at least one twentieth (1/20) of the net profits is deducted for the formation of a statutory reserve. The deduction for the formation of a reserve ceases to be mandatory, as soon as this amount reaches at least one third (1/3) of the capital. The statutory reserve is used exclusively before every distribution of dividends to equalize any debit balance of the income statement. Extraordinary reserves can be also formed following a decision of the General Meeting for other, always specific, purposes, defined under the same procedures and terms and conditions. All extraordinary reserves are used throughout the Bank’s operations given that it does not hinder the realization of their objectives.


32. Analysis of changes in financing activities

Am ounts in euroCredit

s ecuritiesLeas es

S hare capital and amounts for s hare

capital increas e

B alance 1 .1 .2020 47,869,661 4,772,206 39,471 ,780 Leas e payments - (761 ,1 36) - Inflows from s hare capital increas e - - 1 8,496 Total changes from financ ing cas h flows - (761 ,1 36) 1 8,496 New contracts - 1 ,396,31 5 - Changes in as s umptions / effective leas es variables - 703,982 - Change in interes t rate - 536,872 - Other non-cas h changes 46,51 8 - - B alance 31 .1 2.2020 47,91 6,1 79 6,648,238 39,490,276 33. Leases As a lessee The Bank's liabilities mainly arise from buildings it uses for its branches. In 2020, total lease payments amounted to approximately 1.01 million euro. On 01.01.2019 the Bank applied the requirements of IFRS 16 "Leases" recognizing assets as a right-of-use and equal liabilities from leases. The amount of the liability as at 31.12.2020 is as follows:

Am ounts in euroLiabilities from

leas es

B alance 1 .1 .2020 4,772,206 New contracts 1 ,396,31 5 Changes in as s umptions / effective leas es variables 703,982 Leas e payments (761 ,1 36) Change in interes t rate 536,872 B alance 31 .1 2.2020 6,648,238 Changes in fight-of-use assets are presented in Note 19.

The minimum future lease payments of the Bank are estimated as follows:

Leases Financ ial cost Total

within one year 733,746 1 88,1 1 9 921 ,865 from 1 year to 5 years 3,1 29,868 567,897 3,697,765 over 5 years 2,784,624 31 9,71 4 3,1 04,338 Total 6,648,238 1 ,075,730 7,723,968

Minimum future leas e payments under IFR S 1 6Am ounts in euro

31 .1 2.2020

As a lessor Leases as a lessor refer to operating leases of buildings owned by it to third parties which are presented as investment property. The minimum future lease receivables of the Bank are estimated as follows:

Amounts in euro 31 .1 2.2020 31 .1 2.201 9

within one year 384,523 397,527 from one year to 5 years 1 ,538,092 1 ,590,1 08 over 5 years 1 ,922,61 5 1 ,987,635 Total 3,845,231 3,975,270 34. Commitments, Contingent Assets and Liabilities

Contingent tax obligations: The Bank has been audited by the tax authorities until the corporate year 2010, while the statutes of limitations are applicable regarding the years from 2011 to 2014. The audit for the year 2020 that is carried out according to article 65A of L.4174 / 2013, is in progress and the Tax Compliance Report is to be issued following the publication of the financial statements, however, no significant tax obligations are expected to arise. Accumulated provisions for the unaudited years from 2014 to 2019 amount to € 350,000 and are estimated as sufficient by the Management. Capital commitments: In the course of its regular operations, the Bank undertakes commitments that could lead to future changes in its asset structure. These commitments are monitored in off balance sheet accounts and are related with issued letters of guarantee, letters of credit of execution, and liabilities from approved credit facilities and limits. Amounts in euro 31 .1 2.2020 31 .1 2.201 9

Letters of Guarantee 72,552,41 6 79,497,384 Total 72,552,41 6 79,497,384


Contingent legal liabilities: As at 31.12.2020 there are liabilities arising from lawsuits against the Bank in the context of its usual business operations. The Bank has internal controls and procedures in place in order to monitor all lawsuits or similar actions filed against it by third parties, to consider the possibility of their success and to assess potentially arising outflows. In where there is a significant probability of a negative outcome that can be reasonably projected, the Bank recognize a provision included in the Balance Sheet item "Other liabilities". As at 31.12.2020, the total amount of these provisions stands at € 240 k. In cases, where, according to the development of the case and the evaluation of the Legal Consultants as at 31 December 2020, the probability of a negative outcome is not significant or it is not possible to estimate the potential loss due to the complexity of the cases and the duration of the court procedures – no provision has been recognized by the Bank. According to the estimates of the Legal Consultants, there are no pending court or arbitration cases that could significantly affect the financial situation of the Bank as at 31 December 2020. Finally, it is stated that the Bank claims through legal proceedings the collection of overdue debts (loans) in the framework of banking practice and the current legal status.

Pledged assets: As at 31.12.2020 and regarding the Bank's participation in TLTROs III program of 420 million euro, the following collaterals were used: a) Greek government bonds and interest-bearing bonds (EGED) of a nominal value of 450 million euro, as well as b) loan portfolio totaling 156 million euro of a valuation value of 75, 26 million euro (after the cut implemented by the Bank of Greece). 35. Transactions and Balances with Related Parties Balances and transactions between the Bank and related parties in accordance with IAS 24 are as follows: R elated parties trans actions and balances (IAS 24)

Am ounts in euro

R eceivables liabilities

Loans 5,200,945 1 ,854,539Depos its 1 0,363,009 6,834,1 88Letters of guarantee effective 630,434 600,434

R elated parties trans actions and balances (IAS 24)

Am ounts in euro 31 .1 2.2020 31 .1 2.201 9

Trans actions with related parties

Executive pers onnel remuneration 1 ,592,760 976,906BoD and Committees members remuneration 489,575 499,882R emuneration & compens ation to the Members of the Management, BoD & Commis s ion members

69,01 7 97,787

31 .1 2.2020 31 .1 2.201 9

From 1 January to

Other related parties concern mainly legal entities related to the members of the Board of Directors.

36. Recovery and resolution of credit institutions (Directive 2014/59/EU) Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms (BRRD) as well as the Directives 82/891/CM, 2011/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU and Regulations (ΕU) 1093/2010 and (ΕU) 648/2012 were incorporated in the Greek Legislation under Article 2, Law 4335/2015. The main reasoning behind the new Law is that credit institution losses should be assumed by taxpayers only as the last resort. The losses should initially burden the shareholders and then – the creditors (bail in). The abovementioned provisions have been effective since 1.1.2016.

37. Disclosures under Law 4151/2013 - dormant deposit accounts In accordance with the Articles 6-10 of Law 4151/2013 every credit institution in Greece has the liability to transfer the amounts from dormant deposit accounts together with any interest accrued, after 20 years have lapsed, to the government until the end of April of each year depositing them in a special account in the Bank of Greece. The auditors will certify whether or not the Bank complied with the law on dormant deposits by indicating the amount that are attributed to the State. In compliance with Letter of the Hellenic Bank Association under Prot. No. 1436/28.7.2016, as far as the aforementioned accounts are concerned, the provisions for deadline of articles 7 and 8, Law 4151/2013 are suspended. The Bank started its operations in 1994. Starting from 20.7.2015 the capital controls have been effective and suspension of the deadline of Articles 7 & 8 of Law 4151/2013 regarding dormant accounts has started. In April 2019, an amount of 19.20 Euro was returned to the BoG due to multiannual dormant account, while an additional return of approximately 262,76 Euro is expected to be performed in 2020.


38. Other information Within 2020, the Bank did not manage funds on behalf of third parties. Within 2020, the Bank did not provide management services to third parties. The assets denominated in foreign currencies concern time deposit and sight deposits in USD.

As s ets held at foreign currency

Am ounts in euro Amount in € Amount in $

R eceivables from Credit Ins titutionsS ight depos its in $ 809,41 8 993,237 Other receivables (term depos its in $) 3,259,71 8 4,000,000 Total 4,069,1 36 4,993,237

T rade receivablesS ight depos its in $ 47,848 58,71 4 S aving accounts in $ 274,773 337,1 74 Term depos its in $ 3,708,945 4,551 ,246 Total 4,031 ,566 4,947,1 34

31 .1 2.2020

39. Auditors fees The total fees of the auditors for the statutory audit of the annual financial statements for the year 2020 amounts to 35,000 euro. Moreover, fees for tax audit services under Article 65A of Law 4174/13 and other assurance services amount to 46,500 euro. 40. Subsequent events Kastor Portfolio Management In the context of the operational redesign and the business plan, prepared by the Management, the strategic choice of the bank is to facilitate effective management of its loan portfolio, focusing its actions on business activities related to NPLs management. Based on the efficient allocation of available resources, focusing on business opportunities that will bring quantitative and/or qualitative advantages to the Bank and creating value for its shareholders, the Bank prepared Project Kastor, based on which it was decided to assign a service provider for a loan portfolio of a nominal value of approximately € 670 million. In the context of the above, and following the tender procedure carried out by the Bank with the participation of more than ten (10) servicers, on March 10, 2021 Quant was announced as the preferred provider. Quant, a member of Qualco Group, is the largest independent loan and credit receivables Servicer in Greece, managing a portfolio exceeding 12 billion euro. Qualco Group is the first company to obtain international certificate as a Servicer from Fitch, with a Rating of 2-, which is the second highest level of Fitch Ratings scale. Pancreta Bond Renewal Furthermore, at its meeting Num. 26/27.10.2020, the Board of Directors decided to start the procedure for early repayment of the 7-year Subordinate Bond Loan, issued on 21.12.2015 and amounting to 23.5 million euro, immediately after the term of the first 5 years from its issuance, i.e. after 21.12.2020, At the same time, in order to strengthen the Banks regulatory capital, a decision was made to issue a new, respective Subordinate Bond Loan, also with a term of up to seven (7) years, amounting to up to 30 million euro and interest rate up to 6.5%. These decisions were made with a view to reducing the cost of maintaining the particular loan as well as further strengthening the Bank's regulatory capital, as the share of the new issue in Tier2 will be, initially for both first years, at 100% of its value. It is to be pointed out that after 21.12.2020, participation of the existing bond in the Bank's regulatory capital has already been reduced by 40% of its value Based on the above and following the relevant approval of the Bank of Greece (EPATH. 377/2/17.12.2020), following Num. 8/31.03.2021 decision of its Board of Directors, the Bank issued a new 7-year maturity Subordinate Bond Loan (Tier 2) with an interest rate of 6%, at the same time facilitating the early repayment of the old bond. Successful coverage of the new Bond loan would positively contribute to both - the Bank's results and further strengthening of the capital adequacy ratio by 1.12%. Increase in TLTROs - III borrowing allowance limit In compliance with the BoG decision as of 11 March 2021 and in line with the framework of TLTROs-III, as revised under the measures announced by the ECB on 10 December 2020, the Banks borrowing allowance limit in TLTROs-III increased to € 744.80 million. Apart from the aforementioned, no other events occurred after the Financial Statements, which relate to the Bank and for which disclosure is required by the International Financial Reporting Standards.

Heraklion, 30 June 2021


The Chairman of the BoD

The Chief Executive Officer The Chief Financial Officer The Head of Accounting

Department

Dimitrios G. Dimopoulos

Antonios M. Vartholomeos Georgios Xyfaras Georgia Maridaki

ID. No. I 044860 ID. No. ΑΚ 543580

ID. No. Τ 125995 First Class License

Reg. Num. 0026575

ID. No. Χ 351376 First Class License

Reg. Num. 0023948

a uu ii n a a ncc

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