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Corporate Presentation
(9m 2013 financial results)
This presentation has been prepared solely for informational purposes. Any projections or other estimates in this presentation,
including estimates of returns or performance, comments with respect to our objectives and strategies, or the results of our
operations and business, are forward-looking statements based upon certain assumptions and beliefs in light of the information
currently available to the company that may be wrong. These assumptions and beliefs may be influenced by factors within or
beyond our control, and actual results may differ materially from any estimates and projections. Factors influencing actual
results include but are not limited to fluctuations in interest rates and stock indices, the effects of competition in the areas in
which we operate, and changes in economic and regulatory conditions.
This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to
participate in any trading strategy. No part of this presentation may be construed as constituting investment advice or a
recommendation to enter into any transaction. No representation or warranty is given with respect to the accuracy or
completeness of the information contained in this presentation, and no claim is made that any future offer to transact any
securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should
determine any economic risks and benefits, as well as any legal, tax and accounting consequences of doing so, as well as their
ability to assume such risks, without reliance on the information contained in this presentation.
In late March 2013, Piraeus Bank acquired the Greek banking operations carve-out of Bank of Cyprus, Cyprus Popular Bank and
Hellenic Bank. Therefore, the financials in this presentation contain balance sheet data of the aforementioned acquisition as of 31
March 2013 and onwards and respective results as of 16 March 2013. In mid June 2013, Piraeus Bank acquired 100% of
Millennium Bank Greece (MBG). Therefore, the financials in this presentation contain balance sheet data of the aforementioned
acquisition as of 30 June 2013 and onwards and respective results as of 20 June 2013. Due to the absorption of the Greek carve-
out of Cypriot banks in Q1 2013 and MBG in Q2 2013, as well as ‘good’ ATEbank in Q3 2012 and Geniki Bank in Q4 2012,
comparability of balances and results of Piraeus Group for past financial periods is not always feasible; wherever available, it is
included in this presentation.
Disclaimer
2
1. Highlights 4
2. 9m 2013 Results 20
3. Macro Update 28
4. Appendix 33
Table of Contents
3
The New Group . 4
Highlights
4
Presence in 10 countries:
Highlights.
Piraeus at a Glance
5
Top bank in Greece in terms of loans and deposits (30% & 29% market share)
Universal Bank; 2/3 of loans to businesses & 1/3 retail; focus on SMEs and agri-business
#1 web bank in Greece; high ranking in all customer satisfaction surveys
Series of strategic actions in 2012-2013 enhanced size and market power
EBA CT1 ratio at 13.5%
LLR/Gross Loans ratio at 17%
LTD ratio at 113%
Net Eurosystem/Assets ratio at 12%
Brief Profile & Key Data
2009 - 2013 Sustain the Effects of the Crisis Consolidating the Market
2000 - 2003 Operational Overhaul
1991 - 1999 Attaining of “critical mass”
2004 - 2008 Strong Domestic and International Expansion
2013 - Acquisition of:
Greek carve-out of Bank
of Cyprus, Cyprus Popular
Bank and Hellenic Bank
Millennium Bank
2012 - Acquisition of:
“good” ATEbank
Geniki Bank
2003 - Absorption of ETBAbank
2002 - Acquisition of ETBAbank
2000 - Merger with Macedonia
Thrace Bank and Xiosbank
1999 - Acquisition of Xiosbank, NatWest
Greece
1998 - Acquisition of Macedonia Thrace
Bank, Credit Lyonnais Greece
1997- Acquisition of Chase Manhattan
Greece
1991 - Privatisation of Piraeus Bank
1918 - Listing on ATHEX
1916 - Establishment of Piraeus
Bank
2008 - Establishment of Piraeus
Bank Cyprus
2007 - Acquisition of ICB Ukraine
2005 - Acquisition of:
Eurobank in Bulgaria
(Piraeus Bank Bulgaria)
Atlas Banka in Serbia
(Piraeus Bank
Beograd)
Egyptian Commercial
Bank in Egypt (Piraeus
Bank Egypt)
2013 - Sale of ATEbank
Romania
2012 - Sale of Marathon Bank of
New York
1998 - Acquisition of Marathon
Bank of New York
1996 - Establishment of Tirana
Bank in Albania
Domestic International
September 2013 Domestic % of Group Abroad % of Group
Assets (€ bn) 83.8 90% 8.9 10%
Net Loans (€ bn) 56.1 91% 5.9 9%
Deposits (€ bn) 50.2 92% 4.5 8%
Branches (#) 1,218 74% 435 26%
Employees (#) 18,440 75% 6,055 25%
Customers (# mn) 5.8 84% 1.1 16%
Highlights.
Pre provision income recovery
Q3 normalized PPI up 35% q-o-q at €242 mn
NII improvement is the main PPI driver (NII +8% q-o-q,
NIM 250 bps)
- time deposit cost down c.70 bps q-o-q, c.135 bps y-t-d
- lower Eurosystem cost 60% q-o-q
Accelerated monetization of synergies
63% of total synergies crystallized already:
- €153 mn funding synergies secured to-date (96%)
- €192 mn cost synergies secured to-date (56%)
Integration costs savings of €45 mn (11%)
NPLs formation decelerates
NPL formation down 7% q-o-q:
- new Greek NPLs down 9%
- new Greek business NPLs down 19%
- formation trend declines for the 3rd consecutive quarter
17% LLRs over loans; 20% for business portfolio
Q3 2013 Highlights
6
Efficiency gains support PPI recovery
Q3 OPEX down 4% like-for-like
- staff costs down 4% q-o-q like-for-like
- other costs down 5% q-o-q like-for-like
Record-time integration
“One bank-one platform” as of January 1st 2014
6 migrations in the last 6 months (5 domestic, 1 abroad)
c.300 branch closures in 12 months (-24% of total
footprint)
Sound capital adequacy
12.2% CET-1; 13.5% EBA CT-1
Capital buffer of €3.2 bn over an 8% regulatory
threshold
Operating developments
VES concluded (12% of Greek workforce)
c. 300 domestic branches closed in 2013; c.€30 mn annual cost relief
40 HQs premises relocations in Q4; c.€17 mn annual rental cost relief
6 IT migrations (Jun: ATE, Jul: Hellenic, Oct: BoC; Nov: CPB; Dec: MBG & ATE
Romania)
Market developments
BCP stake placed to a broad base of institutional investors; >2x
oversubscription
Among the largest additions in MSCI Emerging Markets Index
Bank of the Year 2013 for Greece by FT magazine „The Banker‟
Under way
BlackRock diagnostic assessment close to finalization
Restructuring Plan: finalization of targets/commitments anticipated before year-
end
Internal reorganization including the establishment of a dedicated recovery
banking unit to be launched before year-end
Recent Developments
7 Highlights.
c.€95mn VES annual payroll relief
private
sector 19%
76%
foreign
investors
Shareholder Base
HFSF
On Free Float
Q3 2013 Normalized PPI (€ mn)
0
50
100
150
200
250
300
Piraeus-ATE-Cypriot ops
PPI
ELA costover ECB
One offcosts
Piraeus-ATE-Cypriot ops
PPI
GenikiPPI
MillenniumPPI
-€11
+€2 2 €199 1
1. Piraeus Group PPI for Q3 2013: Q3 reported €184 mn excluding Geniki and MBG loss of €15 mn
2. ELA cost over ECB cost for Q3 2013; amount has burdened Group NII
3. One off costs for operational integrations and VES
€242
Normalized PPI Recovers on the Back of Declining Funding Costs
-14
-9 -4
Q1 2013 Q2 2013 Q3 2013
-19 -14 -11
Q1 2013 Q2 2013 Q3 2013
Geniki PPI evolution (€ mn) Millennium PPI evolution (€ mn)
+€40 3
-€4
8 Highlights.
-549 -489
179 242
Q2'13 Q3'13
PPI
LoanProvisionCharge
PPI and Provision Charge q-o-q (normalized PPI)
+35%
Piraeus Group normalised PPI for Q3 at
€242 mn up by 35% q-o-q; 1st quarter
incorporating full P&L impact of
acquisitions
PPI to benefit further from funding,
operating costs and revenue synergies
Frontloading of integration expenses so
as to bring forward the synergistic benefit
Geniki and Millennium pre provision
„drag‟ diminishes as both Bank are
rationalized
Recovery of PPI Well in Progress
9 Highlights.
Optimizing Greek Branch Network
Note: ELA over ECB cost is cumulative for each financial period
Accelerated Greek Headcount Reduction
19,238
18,624 18,591 18,440
16,570
Dec 2012 Mar 2013 Jun 2013 Sep 2013 Nov 2013 Dec 2013
1,354
1,306 1,280
1,218
1,097
1,040
Dec 2012 Mar 2013 Jun 2013 Sep 2013 Nov 2013 Dec 2013
Disengagement from Expensive ELA Tightening of Greek Time Deposit Rates
4.58% 4.41%
4.13%
3.42% 3.29% 3.25%
4.40% 4.23%
3.64%
2.82% 2.82% 2.67%
Dec 2012 Mar 2013 Jun 2013 Sep 2013 Oct 2013 Nov 2013
Total Book
Front Book
€9.5bn €11.2bn €10.6bn
€21.5bn
€31.4bn
€2.3bn €0.5bn
€56 €67 €162
€256
€409
€44 €58 €61
Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013 Sep 2013
Y-t-d- Cost (€ mn)
ELA Balance (€bn)
pro-forma for VES
-133 bps
-173 bps
-15% -314#
-€31.4bn
All graphs pro forma for all acquisitions except for the one with Greek time deposit rates (all apart from Geniki Bank)
(e) (e)
€0bn
Q3 Top Line up 13% On The Back of Recovering Core Income
10 Highlights.
Revenues Increase Across the Board (€ mn)
Net Interest Income Decomposition (€ mn)
419 454
67 74 38 66 €524 mn
€593 mn
Q2 2013 Q3 2013
Other
NFI
NII
855 834
122 109
-396 -358
-161 -131
Q2 2013 Q3 2013
€419 mn €454 mn Other
Loans
Deposits
Other
Inte
rest
inco
me
Inte
rest
exp
ense
Net Revenues Recover in Q3
NII increases as funding costs decline from both customer
deposits and lower & cheaper Eurosystem funding
NFI up 10% q-o-q; significant potential for further
improvement as market bottoms out and the Bank
establishes its new market position
Other operating income up 74%, mainly on the back of
recurring operating leasing revenues
Lower Funding Costs Support NII
Lower deposit cost as time deposits rates in Greece
decline substantially (c.70 bps in Q3)
Lower gross loan interest income due to deleveraging
(-1% q-o-q in loan balances) and new NPLs production
c.€15 mn of funding synergies in Q3 (€153 mn
annualized), as deposit rates are harmonized across all
legacy networks (Cypriot carve-out and Millennium)
c.€25 mn lower Eurosystem funding costs (zero ELA)
Note: Q2 2013 interest income-expense pro forma for Millennium (acquired in 19 June 2013)
+8%
+13%
+8%
NII +8% q-o-q
Q3 NIM 250 bps
Rapid Deceleration of OPEX on a Like-for-Like Basis
11 Highlights.
Total Operating Expenses Like-for-Like (€ mn)
Underlying Costs q-o-q (€ mn)
361 346
Q2 2013 Q3 2013
Q3 OPEX Down 4% Like-for-Like
€40 mn integration costs in Q3, out of which c.€24 mn
from VES (the remaining part of VES, c.€105 mn in Q4*)
Cost Cutting Across the Board
Substantial rationalization in HQs premises, as well as
IT, advertisement, servicing and other costs
164
156
197
190
Q2 2013
Q3 2013
Q2 2013
Q3 2013
STAFF
ADMIN
OPEX q-o-q (€ mn) Q2 2013 Q3 2013
Underlying OPEX 361 346
VES - 24
Acquisition-related 8 10
Integration 9 6
One-off costs 17 40
Millennium 3 23
Reported OPEX 380 409
Staff Costs q-o-q (€ mn) Q2 2013 Q3 2013
Underlying staff costs 197 190
VES - 24
Millennium 2 11
Reported Staff Costs 199 225
Admin.Costs q-o-q (€ mn) Q2 2013 Q3 2013
Underlying Other Costs 164 156
Acquisitions/integration 17 16
Millennium 1 12
Reported Admin.Costs 182 184
-4%
Note: Millennium incorporated for 10 days in Q2 and the whole quarter in Q3
-4%
-5%
(*) VES (€105mn) refers to the targeted amount
€14mn
Synergies: Size, Speed, Efficiency
12 Highlights.
Booked in 9m
Actions already
implemented
a. Cost Synergies
Actions taken crystallize 56% of total cost synergies
Fully phased:
€345 mn
€75mn Booked in 9m
Actions already
implemented
b. Funding Synergies
Actions taken crystallize 96% of total funding synergies
Fully phased:
€160 mn
Booked in 9m
Actions already
implemented
Actions taken crystallize 63% of total synergies
Fully phased:
€550 mn
(inc.€45mn revenue synergies)
€92mn
0
420 €57mn booked in 9m 2013
€132 mn additional
actions implemented
45% of integration costs already incurred
vs. 56% crystallization of costs synergies
Total Synergies (a+b)
c. Integration Costs
€45 mn integration
costs savings (11%)
€178 mn €253 mn
€78 mn
Highlights.
Record-Time Integration of Legacy Banks
13
Proven track record in post acquisition integration
More than 20 mergers and acquisitions in the
last 15 years
6 fully successful banking migration projects
in the last 6 months
Last 2 migrations in December 2013
(Millennium and ATEbank Romania) have
completed the integration program, 6 months
ahead of original timeline
Superior infrastructure & project management culture
„Best in class‟ business and technology
infrastructure
Brand new, highly scalable Data Centre in
Athens; state-of-the-art Disaster Data Center
in Salonica
Employees‟ training and culture
homogenization among key priorities in the
integration agenda, with emphasis in the front
line
Customer centric business approach
Customer satisfaction and perception rates
further improved as Piraeus has emerged as
the #1 Bank in the country
Integration Roadmap
June 2013
Good ATEbank
July 2013
Hellenic Bank
October 2013
Bank of Cyprus
November 2013
Cyprus Popular Bank
December 2013
Millennium Bank Greece
€22bn
assets
€1bn
loans
€9bn
loans
€13bn
loans
€5bn
assets
33%
35%
29%
30%
ATMs
Branches
Deposits
Loans
Piraeus Market Shares in Greece
‘One Bank
One Platform’
#1 web bank
in Greece
Note: Cypriot carve-out relates to Greek operations of the 3 Cypriot banks
49% 52%
15%
70%
17% 20%
3%
33%
Total Business Mortgages Consumer
Cash Coverage/NPLs
LLRs/Loans
+€1,449mn
+€1,177mn +€1,267mn +€1,180mn
Q4'12 Q1'13 Q2'13 Q3'13
35% 38%
22%
47%
Total Business Mortgages Consumer
Piraeus Group NPLs Formation 1
13.5
2.0
9.4
1.4 Millennium
BoC-CPB
Geniki
Piraeus-ATE-Hellenic
€26.3bn
Group NPLs Composition - September 2013
NPLs - September 2013 (%)
Coverage of NPLs by LLRs - September 2013 (%)
1. Pre write-off quarterly NPL formation (amount and bps over end-quarter loan balance; Q2 and Q3 2013 excluding Millennium)
Rate of NPL Generation Almost Halved in 4 Quarters
NPLs Sept.2013
Business €18.5 bn
Mortgages €4.1 bn
Consumer €3.7 bn
TOTAL €26.3 bn
excl.Millennium
3.21%
2.43%
1.78% 1.68%
14 Highlights.
109% NPLs coverage
by LLRs & tangible
collateral
275 bps Q3
cost of risk
69% average LTV
for mortgage book
PPI Re-Rating Potential
15 Highlights.
-4.2%
+0.6%
+2.9% +3.7% +3.5%
-4.8%
-2.9%
-0.3%
+1.0% +2.2%
2013 2014 2015 2016 2017
Base
Adverse
Real GDP in Greece (%) (baseline and adverse scenario)
Piraeus PPI Cushions (€ mn)
AnnualizedQ3PPI
VESannualpayrollrelief
Annualizedsynergies
implemented
Timedeposit
convergenceof stock
to front book
PPIpost all actionsalready taken
Unrealized
cost
& revenue
synergies
Q3 PPI implies a €1bn annual
level, without any further
re-rating factor
PPI set to test new highs even
before further market
stabilization, the impact of the
recovery cycle or credit growth
Significant PPI potential uplift
from further time deposits
normalization €968 1
€95
€122
1. Piraeus Group normalized PPI (€242 mn) multiplied by 4
€224 €1,409
Annualized
synergies
implemented
& time deposit
repricing at
current level
Further
time
deposit
rate
decline
€166
3yr PPI before further rerating has the
potential to generate a buffer of c.€3 bn
3yr realized synergies could add an
additional €0.7 bn of buffer
CET-I at 13.5%; significant buffer over
CET-I of 8%
Assuming a coverage of c.50%, Piraeus
could withstand an NPL ratio of up to
c.52% and loan losses equivalent to c.26%
of gross loans
Basle III leverage ratio at 9.1%
1. Assuming constant gross loans
2. Refers to synergies of 2014-2016 net of tax (26%) from the acquisition of ATEbank, Geniki, Cypriot carve-out and MBG, after restructuring costs
3. Normalized Q3 PPI, annualized and multiplied by 3
€12.8 €0.7
€2.9
€3.2 €19.6
Sept. 2013LLRs
3-yearsynergies
NormalizedPPI x 3
EBA CT-Iabove 8%
Loan lossbuffer
Cushion to Address Additional Loan Quality Deterioration (€ bn)
% of gross loans 1
17.1% 0.9% 3.9% 4.3% 26.2%
2 3
Significant Capital Buffers
16 Highlights.
Capital Adequacy Data Sept.2013
Tangible book value €8.0 bn
Regulatory EBA CET-I capital €8.0 bn
RWAs €59.2 bn
EBA CT-I ratio 13.5%
CET-I ratio (excl. State prefs) 12.2%
Significant PPI re-rating expected
providing additional buffers
v
80
619
628
670
1,218
2%
19%
20%
26%
29%
3
2%
19%
20%
23%
30%
Customer Deposits - Greece (%) Greek Branch Network (#)
Data as of September 2013. Source: solo financial statements inc. adjustments for volumes booked in branches abroad, BoG for market, Hellenic Banking Association for branches
1. Includes Geniki, good ATEbank, Greek operations of Cypriot banks and Millennium
2. Includes Emporiki Bank
3. Includes new Hellenic Postbank and new Proton Bank
4. Includes new FBB and new Probank
Gross Loans - Greece (%)
Premiere Franchise in Greece by Loans, Deposits and Footprint
1 1 1
2
2
2
3
4
3
4 4
17 Highlights.
12.2% 11.8%
6.9% 5.5%
13.5% 13.5%
9.4% 8.1%
Peer 1 Peer 3 Peer 2
12% 13%
21% 21%
Peer 3 Peer 2 Peer 1
88%
112% 116% 119%
97%
113% 111%
125%
Peer 3 Peer 2 Peer 1
Greece Group
17.1% 17.0%
13.5%
11.2%
Peer 1 Peer 2 Peer 3
Loans / Deposits in Greece (%) ‘Net’ Eurosystem / Total Assets (%)
CET-I (%)
Note: peers are the other 3 systemic banks (i.e. NBG, Alpha, Eurobank); ratios refer to September 2013; CET ratios are excluding State preference shares; capital ratios for peers 2 and 3
are derived from peers‟ investor presentations (pro forma); „net‟ Eurosystem is calculated deducting refinancing under EFSF as collateral (for Peer 2 this metric refers to November 2013)
Best in Class Capital, Liquidity and LLR KPIs
LLRs / Gross Loans (%)
EBA
CET-I
CET-I
18 Highlights.
Shareholder Structure - Piraeus Stock Data
19
HFSF 75% (with
warrants)
Foreign institutions
15%
Individuals 3%
Greek institutions
1%
HFSF 6% (no
warrants)
Shareholder Structure - end September 2013 (%)
Foreign institutions
76%
Individuals 15%
Greek institutions
9%
Total Private
Sector
Shareholder structure of Piraeus Bank presents great
diversity; total number of common shareholders 165th
The Hellenic Financial Stability Fund holds 81% of
outstanding common shares
The remaining 19% is held by the private sector and in
particular 16% by legal entities and 3% by individuals
Largest private sector participation in recent rights issue in
absolute and relative terms (€1.4 bn or 20%); strong
international presence
BCP announced on Oct. 30, 2013, that it has sold, through
an accelerated placement, its entire holding of shares and
warrants in Piraeus Bank (235,294,117 respectively). The
placement was more than 2x oversubscribed and was
finalized within few hours
For each share subscribed by a private investor in the rights issue, 1 warrant granting the right to acquire 4.48 common Piraeus shares from the HFSF has been provided
Warrants can be exercised in the next 4.5 years following the share offering; first strike date January 2nd 2014 at €1.73
Strike price = subscription price + interest accruing at 4% in year 1, with an annual 1% step-up thereafter
Warrants are traded on the ATHEX, detached from Piraeus Bank shares
Piraeus Stock & Warrant Data
Common shares
HFSF 4.109 bn
Private sector 0.963 bn
Total 5.073 bn
Warrant information
Issued warrants 849 mn
Shares per warrant 4.48
Highlights.
Warrant information
Exercise Date Strike price
Jan 2nd 2014 €1.7340
Jul 2nd 2014 €1.7680
Jan 2nd 2015 €1.8105
Jul 2nd 2015 €1.8530
Jan 2nd 2016 €1.9040
Jul 2nd 2016 €1.9550
Jan 2nd 2017 €2.0145
Jul 2nd 2017 €2.0740
Jan 2nd 2018 €2.1420
The New Group . 20
9m 2013 Results
20
Strong capital position
CET-I at 12.2%, EBA CT-I at 13.5%; buffer of €3.2 bn above 8% regulatory threshold
Total equity at €9.2 bn (out of which €0.75 or 8% Greek state prefs)
Pre provision income boost
Group normalized PPI up 35% q-o-q at €242 mn
ΝPL formation slowing down while provisions remain robust
Q3 NPL formation down to 168 bps over gross loans (178 bps in Q2); encouraging trend in business NPLs
Group LLR over gross loans at 17%; same ratio for Greece vs. 14% Greek market average (source BoG)
Superior funding profile
LTD ratio further improved by 2 ppts q-o-q at 113% (equal improvement in Greece at 112%)
Zero ELA utilization; best in class net Eurosystem funding support over total assets at 12%
Funding cost contraction
Further drop in time deposit rates (Q3 down c.70 bps for total stock, current rollover < 270 bps)
Synergies’ contribution
c.€14 mn of cost synergies materialized in 9m 2013; c.€78 mn of funding synergies respectively in 9m 2013
Integration process frontloaded
98 branches closed in 9m 2013 in Greece, c.300 during 2013 in total (more than half way to the end target)
c.€40 mn of integration costs in Q3 (€24 mn from VES); €57 mn in 9m 2013
c.€105 mn for VES will burden Q4; c.€95 mn annual cost relief thereafter
Q3 2013 Financial Highlights
21 9m Results.
Total assets €92.7 bn
Tangible book value €8.0 bn
Regulatory EBA CET-I capital €8.0 bn
RWAs €59.2 bn
CET-I ratio 1 12.2%
EBA CT-I ratio 1 13.5%
Gross customer loans €74.8 bn
Loan loss reserves €(12.8) bn
Net loans to customers €62.0 bn
Customer deposits €54.7 bn
Customers (#) 6.9 mn
Branches (#) 1,653
Employees (#) 24,495
Loans / deposits 113%
Loan loss reserves / gross loans 17%
NPL ratio 35%
Coverage ratio 49%
Selected Figures (30 September 2013)
1. EBA CT-I includes Greek State preference shares of €0.75 bn (L.3723/2008),
while CET-I excludes them
Net interest income €1,187 mn
Net fee income €195 mn
Trading & other income €166 mn
Total net revenues €1,549 mn
Staff costs €(572) mn
Administrative costs €(388) mn
Depreciation & other expenses €(92) mn
Total operating costs €(1,053) mn
Pre provision income €492 mn
Provision expense on loans and other assets €(1,684) mn
Negative goodwill 3 €3,810 mn
Profit Before Tax €2,618 mn
Tax 4 €608 mn
Net Profit attributable to SHs €3,232 mn
Profit from discontinued operations €19 mn
Income Statement (9m 2013) 2
2. Includes good ATEbank, Geniki Bank, the Greek operations of Cypriot banks (as of
16 March 2013) and Millennium Bank Greece (as of 20 June 2013)
3 Due to acquisitions of good ATE, Cypriot carve-out and Millennium Bank Greece
4. Tax credit of c.€0.5 bn due to change of corporate tax rate to 26% from 20%
9m 2013 Financial Highlights
9m Results. 22
Customer Rates (monthy average) 1
Dec12 (average)
March 2013 (average)
June 2013 (average)
September 2013 (average)
Deposits -2.35% -2.85% -2.70% -2.31%
Savings -Sight -0.57% -0.61% -0.64% -0.69%
Time -4.08% -4.31% -4.02% -3.42%
Loans 5.18% 5.06% 5.09% 4.85%
Mortgages 3.29% 3.10% 3.00% 2.94%
Consumer 9.46% 9.07% 9.37% 9.81%
Business 5.52% 5.42% 5.48% 5.15%
1. Rates refer to parent level data on a month-to-date basis
Deposit Repricing Continues
Deposit cost further down
Cost of time deposits
improved by 60 bps in Q3 for
total stock (70 bps with
Millennium included in June
2013 rate)
Loan rates slightly decreased
to 4.85% in September,
stemming from business
loans
Loan interest income affected
by both deleveraging as well
as NPLs formation; however,
this is more than offset by
deposit costs improvement
9m Results. 23
Time Deposits Costs Test New Lows
9m Results. 24
The difference between Piraeus-ATE, Cypriot carve-out
and Millennium in terms of time deposits cost for existing
book has narrowed substantially; end September level
nearly converged
Current rollover less than 270 bps (data of mid
November 2013)
100 bps of time deposit cost reduction in Greece
translates into an annual benefit of c.€300 mn
c.€0.8 bn time deposits from CPB yet to be repriced post
absorption by Piraeus (due to longer contractual maturity)
carrying c.490 bps of interest rate
1. Rates refer to month-to-date data, source for market data: ECB and Bank of Greece time deposit rates
for duration up to 2 years from households and firms
4.40 4.43 4.38 4.23 4.19
4.00 3.64
3.32
2.98 2.82
2.82 2.67
Dec
-12
Jan-
13
Feb
-13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep
-13
Oct
-13
Nov
-13
Stock
New
Time Deposits Cost (%) (stock vs. new production)
4.83%
4.74% 4.42%
3.53%
5.16%
4.75%
4.33%
3.70%
4.59% 4.49%
4.17%
3.64%
4.08% 4.01%
3.82%
3.35%
2.18% 2.06%
1.91% 1.76%
1.6%
2.1%
2.6%
3.1%
3.6%
4.1%
4.6%
5.1%
Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
Millennium
Piraeus-ATE
Time Deposit Cost Evolution (m-t-d average rates)
EMU market
Cypriot franchises
Greek market
897 747
554 531
522 Acquisitions & Integr.Costs
2008 2012 9m '12 9m '13
Total Operating Expenses (€ mn)
General Administrative Costs Breakdown (€ mn)
Note: FY 2012 costs on a like-for-like basis (i.e. excluding ATEbank for 5 months and Geniki for half a month, restructuring costs and unamortized costs related to closure of branches)
OPEX Rationalization
9m 2013 OPEX down 4% on a like-for like basis,
excluding one-off costs and acquisitions OPEX
Operational one-off costs of €57 mn in 9m 2013 due
to ongoing integrations, out of which c.€24 mn from
VES
Cost Relief Initiatives
Voluntary Exit Scheme (VES) programme launched
for Greece; 12% of Greek workforce, c.€95 annual
payroll relief
Aggressive branch rationalization programme; c.300
domestic branches closed in 2013; c.€30 mn annual
cost relief
HQs premises relocations; 55,000 sq/m released in
2013; c.€17 mn of rental benefit per annum
6 IT migrations in 2013; 4 already conducted (ATE,
Hellenic, BoC, CPB) and additional 2 in Dec.2013
(Millennium, ATE Romania)
Substantial rationalization of all other elements of
admin costs, such as advertising, servicing, IT,
training
9m Results.
-17%
-4%
66
74
70
62
58
34
Other
Maintenance-utilities
Rents
Vendor Costs
Tax/VAT
Servicing 9m'13 - €388 mn
25
9m Results. 26
9.5
33.1
21.6
10.2
3.8
11.0
Funding Mix (end September 2013)
ECB (EFSF
Bonds)
Interbank
Repos
Sight &
Savings
Deposits
Time
Deposits
Equity, T1, LT2,
State prefs
Funding Mix (€ bn)
ECB MRO
7.0
62.0
17.9
3.3
Asset Mix (end September 2013)
Securities
(o/w €14.3 bn
EFSF bonds)
PPE
Net Loans
Other
2.4
Asset Mix (€ bn)
Cash
35.0%
10.1%
9.9%
8.8%
6.3%
5.4%
4.9%
4.8%
2.6%
1.6%
1.5%
1.5%
0.9%
0.7%
0.6%
0.5%
0.4%
0.3%
0.1%
4.1%
Retail
Manufacturing
Trade
Construction
Transport
Real Estate
Tourism
Fin. Service
Energy
Technical
IT
Agriculture
Health
Admin. Services
Mining
Entertainment
Public
Water & Waste
Education
Other Service
Mortgages 24.5%
Consumer 10.5%
Core 39%
Time 61%
Core 35%
Time 65%
Market
Deposits Bolster Funding while Loans Drive Assets
Deposits Breakdown (%) (Piraeus vs. market)
Loans Breakdown (%) (per sector, NACE II)
22
31
2 0.5 0
11
1
11 11 11
8
5 4
Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
EFSF Bonds with ECB
ECB
ELA
ECB Collateral (cash value mtm, € bn)
Eurosystem Refinancing Breakdown (€ bn)
Net Eurosystem
at €11 bn
€33 bn €32 bn
€21 bn
€16 bn
EFSF with ECB
ECB Collateral Breakdown Sep 2013
EFSF bonds €3.8 bn
L.3723/2008 securities €9.3 bn
Other securities €0.9 bn
Non marketable assets €0.7 bn
Collateral Value Pledged €14.7 bn
Lower Reliance on Eurosystem Funding
Over 50% y-t-d reduction in Eurosystem funding
Stable funding through interbank repos against
EFSF bonds
Interbank repo cost trailing ECB base rate.
Further tightening anticipated post recent
reference rate cut.
Lowest Eurosystem dependency compared to
peers (12% at Sep.2013)
Zero ELA utilization.
Operational readiness for tapping issuance
opportunities
€15 bn
281
109 88
70
Dec-12 Mar-13 Jun-13 Sep-13
9m Results. 27
Wholesale and Central Bank Funding (bps)
-211
Customer Penetration and Perception Improve Markedly
28
Face-to-face interviews in Hall Test Centers, 5 waves per year, n=1,000 interviews per wave Sample Profile: males & females, aged between 25 and 55 years old, Bank Customers, Residents of greater urban cities (Athens, Thessaloniki, Patras, Larissa, Iraklio, Katerini) Data have been weighted by gender, age and area, so that the sample is representative of the corresponding population The study is being conducted by an external independent research company
Customer Perception of Piraeus Bank (June-Oct’13) Penetration of Piraeus Bank Over Time
28.225.1
37.9
18.319.317.5
14.8
10.1
17.8
9.68.9
7.1
0
10
20
30
40
50
2008 2009 2010 2011 2012 2013
Penetration
"Main Bank"%
„Penetration KPI‟ answers to the question ‘which bank(s) are you currently banking
with’? And „Main Bank KPI‟ answers to the question ‘which bank is your main bank’?
Note: „penetration‟ and „main bank‟ indices for Piraeus are underestimated as the
study is restricted to respondents up to 55 years old and residents of greater
urban areas. On the contrary, the clientele of ex-ATEbank is represented more
by older ages (55+) and residents of smaller urban and rural areas
76
73
79
86
69
70
68
70
83
83
66
58
64
80
48
61
59
57
74
72
0 10 20 30 40 50 60 70 80 90 100
Reliable
Good Reputation
Economically powerful bank
Wide branch network
Fast service
Informative
Customized Solutions
Innovative
Polite & willing to help personnel
Highly-trained personnel
Piraeus Bank
Peer Average
%
9m Results.
The New Group . 29
Macro Update
Greek Banking Market Key Figures
30 Marco Update.
Market Volumes Nearly at Trough Level (€ mn)
High Level of LLRs and NPLs (% over Loans)
150,000
170,000
190,000
210,000
230,000
250,000
270,000
290,000
Dec
-07
Mar
-08
Jun-
08
Sep
-08
Dec
-08
Mar
-09
Jun-
09
Sep
-09
Dec
-09
Mar
-10
Jun-
10
Sep
-10
Dec
-10
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Loans
Deposits
Loan to Deposit Ratio at Healthy Level (%)
Greek Time Deposit Rates De-Escalating (%)
60%
70%
80%
90%
100%
110%
120%
130%
140%
Dec
-07
Mar
-08
Jun-
08
Sep
-08
Dec
-08
Mar
-09
Jun-
09
Sep
-09
Dec
-09
Mar
-10
Jun-
10
Sep
-10
Dec
-10
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Source: Bank of Greece
Deposit market has stabilized;
+9% y-o-y in September 2013
Loan deleveraging continues;
-4% y-o-y in September 2013
NPLs ratio remains elevated
(c.31%, est.) post 6 years of
recession; yet, LLRs over gross
loans have climbed to 14%
Banking market consolidation
and deposit conditions
normalization have
contributed to the significant
reduction of time deposit
rates, providing upward
potential for net interest
income (a trend that has
already started to boost NII
for Piraeus as of Q3 2013)
3.11%
3.67%
2.22%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Sep
-09
Dec
-09
Mar
-10
Jun-
10
Sep
-10
Dec
-10
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
New - GR
Outstanding - GR
Outstanding - Euroarea
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Dec
-07
Mar
-08
Jun-
08
Sep
-08
Dec
-08
Mar
-09
Jun-
09
Sep
-09
Dec
-09
Mar
-10
Jun-
10
Sep
-10
Dec
-10
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
LLRs/Loans
NPLs/Loans
Unemployment
Sources: European Commission DG ECFIN, ELSTAT, Piraeus Bank Economic Research
Economic Climate Indicator (sa, 1990-2012 = 100)
GDP (y-o-y % change, nsa data)
Greek Economy Reset Close to Materialize (I)
Overall, 4 key themes are identified until the year-end namely: fiscal gap, funding gap,
debt sustainability and funding for growth
Positive developments...
Despite recent fluctuations, the economic climate indicator remained above its 2010-2012
average level and relatively close to the level of the EU as a whole
Regarding public finances, challenges do remain however fiscal consolidation is
progressing. The achievement of a primary surplus in 2013 is anticipated by all the involved
parties
Improvement in the current account balance:
Positive developments in tourism led to an improvement in the travel balance.
The overall trade (excl. oil & ships) and services balance has shown further strength
in 2013, reaching a surplus of €8.3 bn in September (on a cumulative basis)
…but Greece still faces challenges
Greece remains in recession
In Q3 2013 real GDP decreased by 3% y-o-y versus -6.7% y-o-y in Q3 2012. Consequently,
during the first 3 quarters of 2013, the economy contracted by 4% on average, according to
non-seasonally adjusted data. In nominal terms, GDP shrunk by 6.1% in the first 9 months
of 2013. According to our estimates for seasonally adjusted data, in Q3 2013 real GDP
decreased by 0.6% q-o-q
The unemployment rate remains close to 27% of the labor force
….the Greek authorities should:
Continue the strong implementation of the Economic Adjustment Programme
Reinforce the implementation of structural reforms
Accelerate the privatization process, the revenue administration and the public
administration reforms
60.0
70.0
80.0
90.0
100.0
110.0
120.0
Jan-0
6Apr-
06
Jul-06
Oct
-06
Jan-0
7Apr-
07
Jul-07
Oct
-07
Jan-0
8Apr-
08
Jul-08
Oct
-08
Jan-0
9Apr-
09
Jul-09
Oct
-09
Jan-1
0Apr-
10
Jul-10
Oct
-10
Jan-1
1Apr-
11
Jul-11
Oct
-11
Jan-1
2Apr-
12
Jul-12
Oct
-12
Jan-1
3Apr-
13
Jul-13
Oct
-13
ESI, Greece ESI, EU-27 Average Level, Greece (2001-2012)
-10.0
-5.0
0.0
5.0
10.0
15.0
Q1/0
2
Q3/0
2
Q1/0
3
Q3/0
3
Q1/0
4
Q3/0
4
Q1/0
5
Q3/0
5
Q1/0
6
Q3/0
6
Q1/0
7
Q3/0
7
Q1/0
8
Q3/0
8
Q1/0
9
Q3/0
9
Q1/1
0
Q3/1
0
Q1/1
1
Q3/1
1
Q1/1
2
Q3/1
2
Q1/1
3
Q3/1
3
Constant prices Current prices
Macro Update. 31
Greek Economy Reset Close to Materialize (II)
32 Macro Update.
Sources: Bank of Greece, European Commission DG ECFIN, ELSTAT, AMECO, Piraeus Bank Economic Research
Nominal Unit Labor Costs (2005 = 100) Employment (y-o-y %)
Current Αccount Βalance (cumulative, € mn)
-25,000
-20,000
-15,000
-10,000
-5,000
0
5,000
Jan.
Jan.
-Feb
.
Jan.
-Mar
.
Jan.
-Apr
.
Jan.
-May
Jan.
-Jun
.
Jan.
-Jul
.
Jan.
-Aug
.
Jan.
-Sep
.
Jan.
-Oct
.
Jan.
-Nov
.
Jan.
-Dec
.
2010 2011 2012 2013
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
Jan-
07A
pr-0
7Ju
l-07
Oct
-07
Jan-
08A
pr-0
8Ju
l-08
Oct
-08
Jan-
09A
pr-0
9Ju
l-09
Oct
-09
Jan-
10A
pr-1
0Ju
l-10
Oct
-10
Jan-
11A
pr-1
1Ju
l-11
Oct
-11
Jan-
12A
pr-1
2Ju
l-12
Oct
-12
Jan-
13A
pr-1
3Ju
l-13
Unemployment rate remains
high; nonetheless, employment
decreases at decelerated pace
Continuous improvement in
current account balance where a
surplus is recorded, on a
cumulative basis, since July
2013
Economic sentiment -despite
any fluctuations- has climbed
above its 2010-2012 average
level. Substantial improvement
is apparent in both industrial and
services confidence indicators
Primary fiscal balance of 1.6%
of GDP projected for 2014
(0.4% respectively 2013
forecast). Structurally
adjusted primary balance c.20
ppts improvement in 4 years
80
85
90
95
100
105
110
115
120
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Euro area (17 countries)
Greece
Structural Balance / Potential GDP (%)
-5
0
5
10
15
20
25
2010 2011 2012 2013
4yr Cumulative Change in General Government Structural Balance/Potential GDP
Euro area (17 countries)
Greece
Greek Tourism: Record Performance, Recurring Base is Built
33 Macro Update.
16% GDP
contribution
18% employment contribution
3% European
market share
2% world
market share
€650 average per
capita tourism
expenditure
17mn arrivals in 2012
2013 Greek tourism’s record year with:
- c.11% increase in arrivals (11m 2013)
- c.14% increase in revenues (9m 2013)
c.1.7 mn international cruise passenger
arrivals in 2012; further increase in 2013
Upward trend in average tourism
expenditure per capita
International arrivals from new -for
Greece- destinations, such as China and
Russia, provide substantial potential for
additional boost to revenues
SEE Macro Outlook
Economic Growth
Key Monetary Policy Rates
Table of Economic Forecasts
Real GDP
(% y-o-y) Inflation
Fiscal Balance
(% GDP)
Current Account
Balance (% GDP)
2012 2013 2012 2013 2012 2013 2012 2013
Albania 1.5 1.3 2.0 2.0 -3.4 -5.0 -10.5 -10.0
Bulgaria 0.8 0.6 3.0 1.0 -0.5 -1.1 -1.3 0.9
Cyprus -2.4 -6.0 2.4 -0.3 -4.9 -6.7 -6.8 -1.0
Egypt 2.2 2.1 8.6 6.9 -10.6 -13.6 -3.9 -2.1
Romania 0.4 2.7 3.3 3.9 -2.5 -2.5 -4.3 -1.0
Serbia -1.8 1.5 7.3 8.0 -6.4 -5.2 -10.6 -6.5
Ukraine 0.2 -0.5 0.6 -0.2 -3.8 -4.0 -8.4 -7.2
Sources: Piraeus Bank Research, National Statistical Sources
Starting from a low base, economic activity in the SEE region is expected to improve during 2013, with
the exception of Cyprus, Ukraine and Egypt
The local Central Banks have started a monetary policy easing cycle in order to strengthen the local
economic activity as inflationary pressures subside
Fiscal measures have proved effective for most countries. However, the IMF has increased, and is
expected to further increase, its involvement in the region
External imbalances persist but have significantly improved as activity regains momentum
Albania: strong ties to Greece and Italy keep economic activity subdued, but still outperforms its
peers. The completion of the election process in June is a positive step, marking a new era in the
economic, political and social development of the country
Bulgaria: economic activity has rebounded steadily due to strong services, as the country attempts to
change the export-driven economic model. Impressive correction of the fiscal and external imbalances
Cyprus: there are some visible green shoots, as economic contraction in Q3 2013 moderated and all
the targets of memorandum of understanding have been met until now
Egypt: growth remains at a standstill due to the ongoing political uncertainty, threatening
macroeconomic stability. The discussions with the IMF have resumed as foreign exchange reserves
hit a record low
Romania: economic activity has significantly improved in 2013, while a positive step for a further
improvement is the approval of the SBA by the IMF and from the European Commission (€2.0bn
each)
Serbia: the influx of exports due to the automotive industry within the year has led to a significant
improvement of the economic activity and the external sector
Ukraine: the combination of fiscal and current account deficits, in conjunction with a lack of external
funding creates substantial devaluation risks for the local currency. A new arrangement with the IMF
will provide a positive sign of the determination to enact structural changes
General Comments
Country Specifics
-8
-6
-4
-2
0
2
4
6
8
Jun-
08
Sep-
08
Dec
-08
Mar
-09
Jun-
09
Sep-
09
Dec
-09
Mar
-10
Jun-
10
Sep-
10
Dec
-10
Mar
-11
Jun-
11
Sep-
11
Dec
-11
Mar
-12
Jun-
12
Sep-
12
Dec
-12
Mar
-13
Jun-
13
Sep-
13
Countries with Piraeus Bank Presence, excl. Greece (Weighted Average Real GDP growth)European Union
Macro Update. 34
345678
910111213
No
v-0
9
Fe
b-1
0
Ma
y-1
0
Au
g-1
0
No
v-1
0
Fe
b-1
1
Ma
y-1
1
Au
g-1
1
No
v-1
1
Fe
b-1
2
Ma
y-1
2
Au
g-1
2
No
v-1
2
Fe
b-1
3
Ma
y-1
3
Au
g-1
3
No
v-1
3
%
Albania Egypt Romania Serbia Ukraine
The New Group . 35
Appendix
Dec.’12 (*) Mar.’13 Jun.’13 Sept.’13 y-t-d (*)
GROUP 78,624 76,535 75,679 74,787 -2%
Business loans 51,325 49,881 49,116 48,582 -1%
Mortgage loans 18,940 18,690 18,528 18,349 -3%
Consumer loans 8,359 7,964 8,034 7,856 -6%
GREECE 71,286 69,220 68,472 67,660 -2%
Business loans 45,945 44,474 43,759 43,278 -1%
Mortgage loans 18,213 17,975 17,820 17,651 -3%
Consumer loans 7,127 6,771 6,893 6,732 -6%
INTERNATIONAL 7,338 7,315 7,207 7,127 -3%
Business loans 5,380 5,407 5,358 5,304 -1%
Mortgage loans 727 715 708 699 -4%
Consumer loans 1,232 1,193 1,141 1,124 -9%
Gross Loans Like-for-Like Evolution (€ mn) Piraeus Bank Greek Loan Market Shares
35%
25% 22%
30%
Business Mortgages Consumer Total
Source: solo financial statements of banks incl. adjustments for
volumes booked in branches abroad, Bank of Greece for market
Loan Portfolio
Group loan portfolio down 2% y-t-d and 1%
q-o-q on a like-for-like basis
Appendix. 36
(*) December 2012 included OPEKEPE seasonal loan of €2.1 bn; y-t-d excludes this loan
Greek Portfolio (%)
24%
5%
29%
6% 10%
26% Mortgage
Consumer
SBLs
SMEs
Shipping
Large
Dec.’12 Mar.’13 Jun.’13 Sept.’13 y-t-d
GROUP 54,852 56,254 54,733 54,692 0%
Savings 12,923 12,412 12,113 12,346 -4%
Sight 8,327 8,768 8,498 9,255 11%
Time 33,602 35,074 34,123 33,091 -2%
GREECE 50,293 51,627 50,243 50,173 0%
Savings 12,650 12,145 11,838 12,036 -5%
Sight 7,350 7,760 7,578 8,305 13%
Time 30,293 31,722 30,828 29,831 -2%
INTERNATIONAL 4,559 4,627 4,490 4,519 -1%
Savings 273 266 275 310 14%
Sight 977 1,008 920 950 -3%
Time 3,309 3,353 3,294 3,259 -2%
Deposits Like-for-Like Evolution (€ mn) Piraeus Bank Greek Deposit Market Shares
30% 28% 29%
Sight-Savings Time Total
Source: solo financial statements of banks incl. adjustments for
volumes booked in branches abroad, Bank of Greece for market
Deposit Portfolio
Group deposit portfolio flat y-t-d and q-o-q,
on a like-for-like basis
Appendix. 37
Albania 8.1% 8.2%
Bulgaria 4.4% 2.8%
Cyprus 1.3% 2.0%
Egypt 0.8% 0.5%
Romania 3.1% 1.7%
Serbia 2.5% 2.0%
Ukraine 0.3% 0.2%
Market Shares (September 2013)
Loans Deposits
London
Branch (#) 1
Employees (#) 21
Assets (€mn) 1,841
Frankfurt
Serbia
42
563
504
Branches (#)
Employees (#)
Assets (€mn)
Ukraine
38
618
252
Branches (#)
Employees (#)
Assets (€mn)
Romania
158
1,803
1,746
Branches (#)
Employees (#)
Assets (€mn)
Albania
Branches (#) 56
Employees (#) 472
Assets (€mn) 747
83
920
1,737
Branches (#)
Employees (#)
Assets (€mn)
Egypt
42
1,325
832
Branches (#)
Employees (#)
Assets (€mn)
Cyprus 14
319
1,157
Branches (#)
Employees (#)
Assets (€mn)
Piraeus Bank volumes as per IFRS local books
and Central Banks for market volumes
• 7 subsidiaries
• 2 branches (London, Frankfurt)
Bulgaria
Selective Presence in the Region
Appendix. 38
Branch (#) 1
Employees (#) 15
Assets (€mn) 121
Unparalleled Value Extraction from Acquisitions
Appendix. 39
Costs Funding Revenue Sum %
118 47 29 194 35%
43 2 5 50 9%
150 100 0 250 46%
30 13 10 53 10%
TOTAL 341 162 44 547 100%
% 62% 30% 8% 100%
Synergies Breakdown (€ mn)
Cost synergies through
HR and branch
optimisation, elimination
of overlapping
infrastructure (IT,
operations, promotion,
back office, corporate
functions, shared
services etc)
Improved funding costs,
through reduction in time
deposit rates
Modest additional
revenue synergies via
combined initiatives in
bancassurance, asset
management and
alternative distribution
channels
Piraeus Branches in Greece - March 2013
Thessaly
71 1,316
Branches
Macedonia-Thrace
322
Epirus
41
Peloponnese,
West Greece
159
Aegean
Islands
73
Crete
78
Central Greece
64 Ionian
Islands
24 Attica
484
Piraeus Branches in Greece - December 2013
Thessaly
54
Macedonia-Thrace
253
Epirus
33
Peloponnese,
West Greece
122
Aegean
Islands
53
Crete
61
Central Greece
51 Ionian
Islands
21 Attica
394
1,042
Branches
x-sell
Retail & Web Banking Premier Services to Boost Fee Income
Appendix. 40
Winbank
By the end of 2013:
360th active individual customers and 40th active legal entities will be enjoying the
services of the best web banking platform in Greece
5.5 mn monetary transactions will have been performed through internet banking, an
increase of 33% vs. 2012
mobile banking users of Piraeus Bank will reach 35% of the domestic mobile banking
market
Bancassurance
2012 gross premia of €210 mn, commissions €22 mn
2013 gross premia of €323 mn, commissions €37 mn
Substantial growth potential due to wide branch coverage and structural changes of
health & pension infrastructure in Greece
Personal banking
Affluent customers serviced through Piraeus Bank‟s personal banking program were
20th in 2012
In 2013, personal banking programs serve more than 45th customers
In 2014 the new, re-launched personal banking platform is expected to serve more than
100th affluent customers
2.5
2.1
0.7
0.2 0.3
5.8
Piraeus ATEbank CypriotBanks
Millennium Geniki Total
3.10
# number
of active
customers
in Greece
Active Customers in Greece (mn) & Cross Sell Ratios (per acquired franchise)
1.89 1.81 3.37 2.00
IT and Operations Expertise
Appendix. 41
20 M&As in the last
2 decades
1. Proven Expertise in M&A and Integrations
Extensive track record in integrating banking systems and proven experience in merging banks (11 integrations executed
by end-2011, e.g. Macedonia-Thrace Bank, Xiosbank, ETVAbank, Natwest Greece, Credit Lyonnais Greece etc)
State-of-the-art methodology crafted and refined throughout the last 2 decades
Core IT and Operations teams have been working together for 15 years and have developed a very efficient cooperation
Project Management culture is widely adopted
Swift and efficient reallocation of staff of merged banks, facilitating transfer of know-how and cultural homogenization
2. Open IT Systems Architecture Best-of-breed approach adopted for IT Systems architecture
High degree of applications parameterization
Tight integration with the use of a robust and reliable middleware
Critical systems have been developed in-house (CRM, internet banking, etc)
High capacity of internal development teams, staff with deep knowledge of all applications developed
3. Flexible and Scalable Infrastructure
Modern, recently built (2013) Group Data Center, currently in the process of certification as Tier IV by the UpTime Institute
(unique in Greece)
Modern Disaster Data Center, located 500km away from primary Data Center for safety reasons. Two Data Centers are
real time synchronized and can load balance
6 migrations
in the last 6 months
Focus on Agri-banking
Appendix. 42
Agricultural Sector in Greece
• Contribution of 2.5% to Greek GDP (higher than the EU-27 average of 1.2%)
• Employment provider to 12.4% of economically active population with upward trend
• Significant contribution to total exports by 17.5% or €4 bn
• Important factor of economic and social cohesion in Greece; period of intense change with significant challenges
(e.g. reformed Common Agricultural Policy, climate change, new methods etc)
• Great growth potential (high-quality agricultural products, lower than EU average yield per hectare, input
productivity and penetration of technology and innovation, younger farmers with higher level of education entering
the agricultural profession)
• Sector associated with a large number of processing companies and cooperatives, which are investment stimulant,
export oriented, use new technologies and innovation in all their stages, adding value to Greek products
Piraeus Agri-banking
• Undisputable leader in the agricultural sector in Greece with market share of c.90%; extensive focus on all sectors
related to agriculture (processing, retail, marketing); > 660th farmers bank with Piraeus
• Contract farming: > 20 agreements in the field of animal production (livestock, dairy) and crop production
(peaches, energy crops, cotton, tobacco, vegetables, etc), in order to strengthen the food supply chain and rural
economy
• Substantial sticky deposit portfolio from farmers, inherited mainly from ATEbank; wide and loyal customer base
• The bank contributes to the design and implementation of Rural Development Programmes (in cooperation with the
Ministry of Rural Development and Food)
• Extensive expertise and experience in the banking sector of financial tools for primary production (in farming as well
as in processing and trading)
2.5 ppts contribution
to Greek GDP with an
upward trend
>20 contract farming
agreements up to now
Sept. 2013
Cash/balance with central banks 3,297
Loans & advances to banks 381
Gross Loans 74,787
(Cumulative provisions) (12,790)
Instruments at FV through P&L
233
Debt securities & receivables 15,818
Available for sale portfolio 1,820
Held to maturity portfolio 64
Intangibles & goodwill 309
Fixed assets 2,445
Other assets 6,012
Assets from discontinued operations 343
Total assets 92,719
Due to banks 25,777
Deposits 54,692
Debt securities 620
Other liabilities 1,816
Liabilities from discontinued operations 591
Total liabilities 83,496
Total equity 9,222
Total liabilities & Equity 92,719
* includes good ATEbank, Geniki Bank, the Greek operations of Cypriot banks (as of 16
March 2013) and Millennium Bank Greece (as of 20 June 2013)
** discontinued operations refer to ATE Insurance and ATE Insurance Romania
9m 2013
Net Interest Income 1,187
Net Fee Income 195
Trading & Other Income 166
Total Net Revenues 1,549
Employee Costs (572)
Administrative Expenses (388)
Depreciation & Other (92)
Total Operating Costs (1,053)
o/w One-off Integration Costs (57)
Revenues from associates (4)
Pre Provision Income 492
Impairment Charges on Loans (1,544)
Impairment Charges on Other Assets (140)
Negative Goodwill from Acquisitions 3,810
Profit Before Tax 2,618
Tax (608)
Net Profit attrib. to SHs 3,232
Discontinued Operations** 19
PROFIT & LOSS* (€ mn) BALANCE SHEET (€ mn)
Group P&L and Balance Sheet
Appendix. 43
* discontinued operations refer to ATE Insurance * discontinued operations refer to ATE Insurance Romania
9m 2013
Net Interest Income 955
Net Fee Income 159
Trading & Other Income 127
Total Net Revenues 1,241
Employee Costs (496)
Administrative Expenses (309)
Depreciation & Other (68)
Total Operating Costs (873)
Revenues from associates (5)
Pre Provision Income 363
Impairment Charges on Loans (1,282)
Impairment Charges on Other Assets (110)
Negative Goodwill 3,810
Profit/Loss Before Tax 2,782
Tax (594)
Net Profit attrib. to SHs 3,378
Discontinued Operations* 19
GREECE (€ mn) INTERNATIONAL (€ mn)
9m 2013
Net Interest Income 233
Net Fee Income 36
Trading & Other Income 40
Total Net Revenues 308
Employee Costs (77)
Administrative Expenses (79)
Depreciation & Other (24)
Total Operating Costs (180)
Revenues from associates 1
Pre Provision Income 129
Impairment Charges on Loans (262)
Impairment Charges on Other Assets (30)
Negative Goodwill -
Profit/Loss Before Tax (164)
Tax (14)
Net Profit attrib. to SHs (146)
Discontinued Operations* 0
Group Results: Domestic / International
Appendix. 44
Communication
Anthimos Thomopoulos, CEO
George Poulopoulos, CFO
George Marinopoulos, IRO
Chryssanthi Bermpati, Senior Manager, IR
Vicky Diamantopoulou, Senior Manager, IR
4 Amerikis St, 105 64 Athens
Tel. : (+30 ) 210 333 5026
Fax : (+30 ) 210 333 5079
Bloomberg: TPEIR GA <F8>
Reuters: BOPr.AT
www.piraeusbankgroup.com
Communication. 45
Last modified date: December 6th 2013