PIRAEUS BANK INVESTOR UPDATE

P I R A E U S B A N K

INVESTOR UPDATE

London, 15 July 2019

TODAY’S AGENDA

10:00 Welcome

10:00-10:30 Christos Megalou Chief Executive Officer

10:30-10:50 Elias Lekkos Chief Economist

10.50-11:20 Theodore Gnardellis | George Christopoulos Piraeus Legacy Unit Strategy | Asset Sales

11:20-12:00 Q&A

12:00-12:10 Break

12:10-12:30 Eleni Vrettou Corporate & Investment Banking

12:30-12:50 George Georgakopoulos Piraeus Legacy Unit | NPE Servicer

12:50-13:20 Q&A

13:20-13:30 Christos Megalou Chief Executive Officer

13:30 Closing

Additional participants in Q&A: Tom Arvanitis (Piraeus Financial Markets), Chryssanthi Berbati (Investor Relations)

Discussion Items

STRATEGIC OVERVIEW 01

GREEK ECONOMY & OUTLOOK 02

NPE STRATEGY & EXECUTION 03

CIB PERFORMANCE & TRENDS 04

NPE SERVICING AGREEMENT 05

STRATEGIC OVERVIEW

01

1.1 OUR DEVELOPMENTS | AT A GLANCE

5 |

01

STRATEGIC OVERVIEW

2018 Capital Strengthening Plan CompletionA

Strategic Partnership with Intrum on NPE ServicingC

New Roadmap “Agenda 2023”D

2015 Restructuring Plan Completion E

NPE Strategy Execution on TrackF

New Business Picking-Up & Positive JawsG

B Enhancement of Capital Buffers by Recent Tier 2 Issue

1.2 OUR DEVELOPMENTS | CAPITAL

6 |

2018 Capital Strengthening Plan CompletionA

• The internal capital actions of 2018 have been concluded €0.5bn

• A 10NC5 Tier 2 was issued on 26 June 2019 €0.4bn

• Additional initiatives are executed (eg NPE servicing agreement) €0.4bn

STRATEGIC OVERVIEW

01

€1.3bn

1.3 OUR DEVELOPMENTS | TIER 2

7 |

Enhancement of Capital Buffers by Recent Tier 2 Issue

Allocation by Investor Type Allocation by Geography

B

STRATEGIC OVERVIEW

01

1.4 OUR DEVELOPMENTS | NPE SERVICING

8 |

Strategic Partnership with Intrum on NPE ServicingC

• New servicer company for the management of NPEs & REOs

• Market-leading independent NPE servicer

• 80% of the new servicer company will be held by Intrum & 20% by Piraeus Bank

• Expectation for a material boost to the execution of Piraeus’ de-risking strategy

STRATEGIC OVERVIEW

01

1.5 OUR DEVELOPMENTS | STRATEGY

9 |

New Roadmap “Agenda 2023”D

• Piraeus Bank introduced its new strategic roadmap with the following targets:

Cost-to-Income ratio at low 40s

Non Performing Exposures at single-digit ratio

Return on Tangible Equity at high single-digit

Regulatory Capital ratio at ~200bps above requirement

STRATEGIC OVERVIEW

01

1.6 OUR DEVELOPMENTS | RESTRUCTURING PLAN

10 |

2015 Restructuring Plan Completion E

• Greek operations commitments completed (eg headcount, branches, costs, LDR)

• International divestments concluded (eg Serbia, Romania, Albania, Bulgaria)

STRATEGIC OVERVIEW

01

1.7 OUR DEVELOPMENTS | NPE REDUCTION

11 |

NPE Strategy Execution on TrackF

• 6M.19 NPE reduction as per target

• NPE sales of €2.3bn GBV completed in one year, €0.7bn NPE sale at BO phase

• More than €2bn RRE-based securitization in preparation, planned for early 2020

STRATEGIC OVERVIEW

01

1.8 OUR DEVELOPMENTS | PROFITABILITY

12 |

New Business Picking-Up & Positive JawsG

• Healthy business demand emerging in sectors geared to growth and exports

• Target for €4bn new loans in 2019 vs €3bn in 2018; €1.9bn in H1.19

• Credit decisions based on the Bank’s Adjusted Returns Tool (“ART”)

• Earnings capacity supported by both top line and OpEx improvement

STRATEGIC OVERVIEW

01

1.9 2018 CAPITAL ENHANCEMENT PLAN

13 |

Actions Announcement StatusRWARelief

>> Avis [operating leasing company] Q1.18 ~€0.2bn

>> Serbia [banking subsidiary] Q2.18 ~€0.3bn

>> Romania [banking subsidiary] Q2.18 ~€0.6bn

>> Amoeba [secured NPL portfolio] Q2.18 ~€0.4bn

>> Arctos [unsecured NPL portfolio] Q2.18 ~€0.1bn

>> Albania [banking subsidiary] Q3.18 ~€0.4bn

>> Bulgaria [banking subsidiary] Q4.18 ~€0.7bn

>> Other de-risking actions [non-core assets de-risking] Q4.18 ~€0.6bn

>> Nemo [secured NPL portfolio] Q2.19 ~€0.3bn

Total ~€3.6bn

The €3.6bn RWA Relief is Equivalent to €0.5bn Capital Enhancement for the Bank

STRATEGIC OVERVIEW

01

14 |

1.10 2019 CAPITAL ENHANCEMENT PLAN

Management Actions Targeted Capital

Improvement

A. Tier 2 debt issuance ~85bps

B. Sale of operations, non-core subs & participations ~80bps

C. Review of high capital-consuming businesses

D. Enhanced organic revenue generation

E. Accelerated cost efficiency actions

F. Balance sheet optimization | RWA management

Capital Position Strengthening through a Number of Additional Initiatives

Issued 26 Jun.19

NPE servicing agreement

160-200 bps

total initial guidance

STRATEGIC OVERVIEW

01

1.11 CAPITAL TRAJECTORY POST RECENT TRANSACTIONS

15 |

Total Regulatory Capital (%, phased-in) Total Regulatory Capital (%, fully loaded)

Recent Transactions, Coupled with Return to Profitability, Strengthen Capital Position

STRATEGIC OVERVIEW

01

1.12 PROJECTED CAPITAL EVOLUTION

16 |

Total Regulatory Capital (%)

+0.9% +0.8% +0.4%

e: estimate; f: forecast

Organic Capital Generation Supports Capital Development Going Forward

14.0% to 14.5% OCR

STRATEGIC OVERVIEW

01

1.13 GREEK MARKET NPE TRAJECTORY

17 |

48% <20%

a: actual; f: forecast

NPE ratio 48% 47% 45%

NPE

GDP

NPE/GDP

€185bn €184bn €187bn €191bn €202bn

58% 57% 51% 43% 13%

STRATEGIC OVERVIEW

01The 3-year NPE Targeted Reduction Equals ~30% of GDP; Ambitious yet Feasible

1.14 REAL ESTATE MARKET TREND

18 | STRATEGIC OVERVIEW

01Outlook for Real Estate Prices Embedded in Existing Plan

2017a 2018a 2019e 2020f 2021f

Non-residential real estate price change 1.6% 5.0% 4.0% 3.6% 3.6%

Residential real estate price change -1.0% 1.5% 2.6% 3.2% 3.6%

a: actual, e: estimate, f: forecastSource: Piraeus Economic Research, baseline scenario

Upside Potential to Collateral Valuations from Acceleration of Real Estate Price Recovery

• Current Run-Rate of Non-Residential RE prices at +6% and Residential at +4% yoy

• Piraeus Bank has €23bn of real estate assets as underlying collateral for loans and €3bn οf own

assets. Almost €11bn relates to NPE portfolio

• For every 100bps incremental shift in Real Estate prices, estimated value improvement is

approximately at €50-100mn

1.15 IMPROVED LIQUIDITY PROFILE

19 |

Domestic Deposits | €bn Liquidity Coverage Ratio (%)

>95%

Satisfactory Liquidity on the back of Deposit Restoration and Macroeconomic Stabilization

LDR c.85%

STRATEGIC OVERVIEW

01

1.16 LOAN BALANCES

20 |

Gross Loans (€bn) New Loans (€bn, %)

Non performing exposures to be reduced as per plan

Performing exposures: €15bn new loans and €2bn netcurings to be offset by €7bn amortization and other

Business lending is the driver of loan growth

~5

~6

5348

NPE

PE

~4

3.1-15

+10

e: estimate; f: forecast

Loan Evolution Incorporates the Parallel Dynamics of De-risking and Healthy Loan Growth

STRATEGIC OVERVIEW

01

1.17 ADJUSTED RETURNS TOOL

21 |

Adjusted Returns Tool Developed for Risk-Based Pricing, Fully Adopted by the Bank’s Business Units

STRATEGIC OVERVIEW

01

Cost of Credit Risk

Cost of Capital

Cost of Liquidity

Operating Expenses*

Ancillary Revenues**

Hurdle Rate

Cost Spread

Profit Margin

Final Yield/ Spread

ARoC

* Operating expenses soon to be introduced into the methodology** Ancillary revenues have a positive contribution, thus reducing the Hurdle rate

The overall methodology aims at:

optimizing capital allocation

establishing a hurdle rate for every loan decision

capturing term profitability, focusing on return maximization and credit loss mitigation

enhancing the risk culture across the Bank

1.18 REVENUES & OPEX| POSITIVE JAWS

22 |

• Xxx

• Xxx

• Xxx

Operating Jaws (€bn)

a: actual; e: estimate; f: forecast

1.2

Positive Jaws Supported by Frontloaded Cost Cuts and Revenue Increase post 2020

STRATEGIC OVERVIEW

01

1.19 NET INTEREST INCOME

23 |

(€mn) 2018a 2019e

Interest Income 1,874 1,830

Loans & Bonds 1,770 1,715

Other 105 115

Interest Expense 465 430

Deposits 199 180

Interbank Funding 50 15

Debt Securities 6 25

Other 210 210

Net Interest Income 1,410 1,400

Current NII run rate at mid single digit increase

NII going forward growing at low single digit pace per

annum: yield from new assets will outpace increasing

debt securities issuance costs

Loan income to move into positive trajectory in line

with new healthy disbursements

●

●

●

Resilient NII Going Forward as Improvement on the Asset Side Offsets Debt Issuance Costs

a: actual; e: estimate

STRATEGIC OVERVIEW

01

(€mn) Q1.2019 % Assets

Loans 13.1 0.09%

Acquiring 12.1 0.08%

Funds Transfer 11.9 0.08%

Cards Issuance 9.5 0.07%

Bancassurance 8.4 0.06%

Letters of Guarantee 8.3 0.06%

Payments 6.1 0.04%

AM & Brokerage 5.5 0.04%

FX Fees 3.8 0.03%

Deposits 1.6 0.01%

Other 7.7 0.05%

Total Fee Income 88.0 0.61%

1.20 FEE & COMMISSION INCOME

24 |

Enhancement initiatives implemented to

boost fees from all areas of business at par

with gradual macroeconomic recovery

Fees stemming from transaction banking,

credit cards, payments and asset

management / brokerage are expected to

perform in line with our strategy

●

●

above 0.8% in the medium term

STRATEGIC OVERVIEW

01NFI to Grow Along with the Macro Recovery & Increasing Penetration to Specific Areas of Business

1.21 G&A COSTS

25 |

(€mn) 5M.18 5M.19 yoy

Rents 17 15 -12%

Maintenance 14 11 -22%

IT 13 10 -28%

Third Parties 25 20 -22%

Promotion, Subscriptions 14 12 -19%

Taxes 56 48 -14%

Other 18 12 -34%

Total G&A Costs 158 126 -20%

Current run rate of more than 15% reduction yoy

Going forward, high single-digit pace of reduction

Efficiencies to be further increased along with

increasing digitalization, as well as the

implementation of the NPE servicing agreement

●

●

●

Preliminary data for 5M.19

STRATEGIC OVERVIEW

01G&A Costs Running at -20% Reduction Rate Boosting the Bank’s Efficiency Ratio

1.22 REVAMP OF GOVERNANCE & CONTROLS

26 |

• Reshuffling of Top Management

• Revamp of Internal Policies and Controls

• Adjusted Return on Capital Methodology and Process

• Cultural Transformation: work- in-progress as of 2017

• Roadmap for the Future

STRATEGIC OVERVIEW

01

1.23 LATEST FINANCIAL TRENDS

27 |

€1bn customer deposits increase in Q2.19

LDR at ~ 85%; LCR at ~ 95% Deposit cost further contained

NPE movement on track with the yearly 2019 target

More than €2bn RRE-based securitization in preparation, placement in 2020

Positive tailwinds from real estate collateral revaluation

Performing loan book increased in 6M.19 by more than €500mn (€1.9bn new loans)

Resilient new loan production yields

OpEx running at high single digit reduction pace yoy

STRATEGIC OVERVIEW

01

GREEK ECONOMY & OUTLOOK

02

Can the New Government Revive the Greek “Animal Spirits”?

2.1 ECONOMIC RECOVERY

29 |

02Since 2017, the Greek Economy has been Range-bound Between 1.5%-2.0%


2019e 1.6%

Source: ELSTAT, Piraeus Bank Research

2.2 NEW GOVERNMENT’S PLAN

30 |

Fiscal Stimulus

The New Government’s Plan to Reach “Escape Velocity”

Investment “Shock” Escape Velocity

Fiscal Neutrality€6bn €6bn

€60bn€0.5bn corporate tax rates cut in 2-years

€0.45bn dividend tax rate cut

€2.6bn personal income tax rate cut (up to €10,000)

€0.8bn increase in the tax free income threshold by €1,000 for each child

€1.02bn VAT rate cuts

€0.3bn business fee gradual abolishment

€0.4bn special solidarity levy gradual cut

€0.4bn ENFIA (property tax) cut in 2-years

Special incentives (doubling of the time foroffsetting losses, 200% over-depreciationnew investments)

€12bn in infrastructures

€20-€25bn in tourism and shipping

€15-€20bn in primary sector and foodprocessing manufacturing

€9bn in energy and the environment

€10bn in R&D, Industry, logistics and PPP

Efficiency Savings

4.0% Real GDP = €4.0bn tax revenues

€0.2bn public consumption spending cut

€1.19bn rationalization & improvement inDEKO & General Government Legal Entities

€0.14bn interest payments cut for T-bills

€0.15bn no public sector wage increase

€0.3bn hiring / retirement ratio (1/5)

€0.02bn unused real estate exploitation

€4bn

€2bn


02

Source: ND Elections 2019 Programme, Piraeus Bank Research

2.3 INVESTMENTS ENVIRONMENT

31 |

Investments & Net Capital Stock (€bn)

For 2.0% Average GDP Growth we Need to “Crowd-in” €325bn of Investments

Non Financial Corporations

Net vs Gross Fixed Capital Formation (€bn, current prices)


02

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Gross Fixed Capital Formation Net Fixed Capital Formation

Disinvestment

through depreciation

Stock 1989 Stock 2027Capital Consumption

GFCFCapital

ConsumptionGFCF

Capital Consumption

GFCFCapital

ConsumptionGFCF

Source: ELSTAT, Piraeus Bank Research

1990 - 1999 2000 - 2008 2009 - 2018 2019 - 2027

2.4 ANIMAL SPIRITS

32 |

But after a Long Recession “Animal Spirits” are Dormant


02

Source: EC DG ECFIN, Piraeus Bank Research

2.5 GREEK CORPORATES (i)

33 |

outperformers(7.9%)

a

668

b

2,985

c

3,477

d

1,289

good performers(35.5%)

medium performers(41.3%)

underperformers(15.3%)

Despite Popular Belief, Greece has a Substantial “Bankable” Corporate Universe


02

Source: ICAP DATA, Piraeus Bank Research

2.6 GREEK CORPORATES (ii)

34 |

EBITDA margin Total liabilities to equity Net debt to EBITDA

a. 24.7%

a. 33.0%

a. 24.9%

b. 14.8%

b. 13.0%

b. 14.7%

c. 7.1%

c. 6.9%

c. 7.1%

d. -8.3%

d. 1.8%

d. -8.1%

-20% -10% 0% 10% 20% 30% 40%

SMEs

Large

Total

a. 0.5

a. 0.7

a. 0.5

b. 1.2

b. 1.2

b. 1.2

c. 2.7

c. 3.6

c. 2.8

d. 3.6

d. 4.0

d. 3.6

0 1 2 3 4

SMEs

Large

Total

a. 0.1

a. 2.2

a. 0.1

b. 3.8

b. 4.1

b. 3.8

c. 13.7

c. 11.6

c. 13.6

d. 24.9

d. 26.4

d. 25.0

0 10 20 30

SMEs

Large

Total

Dormant “Animal Spirits” Drive Defensive Corporate Balance-sheets to Extremes


02

Source: ICAP DATA, Piraeus Bank Research

2.7 CREDIT ENVIRONMENT

35 |

Corporate Loans (annual % change)

But Corporate Credit is Recovering…

Corporate Loans (net flows €bn) Corporate Loans by sector (annual % change, Apr.19)


02

Source: Bank of Greece, Piraeus Bank

Manufacturing, Mining & Quarrying

Electricity, Gas & Water Supply

Accommodation & Food Service Activities (Tourism)

Storage & Transportation other than shipping

Professional, scientific, technical, administrative &

support activities

18.8

51.5

2.8 REAL ESTATE ENVIRONMENT

36 |

Residential Real Estate Prices (annual % change) Non Residential Prices (annual % change) Real Estate FDI in Greece (€mn)

…as well as Real Estate Valuations


02

Source: Bank of Greece, Piraeus Bank

4.0%

6.4%

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

Q1

/07

Q4

/07

Q3

/08

Q2

/09

Q1

/10

Q4

/10

Q3

/11

Q2

/12

Q1

/13

Q4

/13

Q3

/14

Q2

/15

Q1

/16

Q4

/16

Q3

/17

Q2

/18

Q1

/19

€392mn

2.9 TRENDS & OPPORTUNITIES

37 |

With Plenty of Entry Points for New Capital

Greece needs to reorient itself from a consumption-based to an export-based

economy

Emphasis on export-oriented sectors: Tourism, farming, food processing, oil

refining, basic metals & minerals, chemicals, pharmaceuticals

Even in sectors with a competitive advantage Greece needs infrastructure

upgrades, ie 5-star resorts, yachting, convention centers, marketing &

branding

In sectors with less stellar prospects such as retail and wholesale trade, fish-

farming, passenger shipping, telecoms, consolidation will create sectoral

champions with improved margins

Regulatory pressures to liberalize industries such as electricity, natural gas,

waste processing & management, renewable energy

Greece has a number of competitive advantages but needs to move up

the Value Added Chain

In several sectors and for a variety of reasons, a massive consolidation process

has started

More funding, either in the form of equity or loans, will be required

Privatized assets & natural resources development will require substantial

investment (equity or loans)

Clusters can be created around privatized assets, ie ship-repair zone, logistics, cargo

management, cruise tourism

Banks commitment to reduce NPLs & Non Core Assets will create opportunities in

real estate, insurance and leasing, hotels and in over-indebted but viable

companies

Greece is facing regulatory pressures to liberalize and privatize a number of sectors

Greek banks have committed to reduce NPLs and restructure their balance sheets


02

Source: Piraeus Bank Research

NPE STRATEGY & EXECUTION

03

3.1 OUR WORK UNTIL NOW

39 | NPE STRATEGY & EXECUTION

03

Group NPE Development (€bn)

Coverage

96%

NPE Reduction of €5.5bn in 2018, the Largest Annual Reduction in the Greek Market

Restructuring Volumes (€bn)

-€12.0bn

3.3 GROUP NPE UP TO 2021

40 |

Inflows: €6.1bn


03

amounts in €bn

NPE Reduction of €15bn until YE.21, of which Almost Half via Inorganic Actions

o/w Securitizations €6.0bn

• loss budget already embedded in CoR guidance

• >100% coverage by provisions and collateral

3.2 NPE MOVEMENT DECOMPOSITION

41 |

03

GeorgeHandji

nicolaou

Re-defaults

Defaults

NPEs | Bank data (€bn)

Curings,Collections,Liquidations

Write-offs

Required effort per quarter on average until

Dec.2021

Q2.19 - Q4.21

Sales

Q1.18

30.8 28.3

Q2.18 Q3.18

27.5 26.4

Q4.18 Q1.19

25.9

Average Q1.18-Q1.19

Curings (0.6)Collections (0.2)Liquidations (0.1)

Average Q2.19-Q4.21

Curings (0.6)Collections (0.1)Liquidations (0.2)


3.4 SIGNIFICANT CURING POTENTIAL


03

(€bn) 0 dpd 1-89dpd >90dpd Denounced NPEs

Business 5.6 1.9 2.0 8.4 17.9

Mortgages 0.9 0.8 0.8 3.8 6.2

Consumer 0.2 0.2 0.5 1.8 2.8

TOTAL 6.7 2.8 3.3 14.1 26.9

NPEs per Bucket (Mar.19)

NPΕ mix 25% 10% 12% 52% 100%

[1] [2] [3] [1+2+3+4][4]

25% of NPEs have 0days of Arrears; Pace of NPE Exits from Curings at €0.6bn per quarter

Cash Coverage Ratio (Mar.19) Forborne Loans (€12.3bn, Mar.19)

3.5 COVERAGE BY SEGMENT


03

Mortgages

Business

Consumer

Mortgages

Business

Total 95%

Total NPE coverage at

96%

Total NPL coverage at

121%

Consumer

Total 100%

Total 94%

Total 130%

Total 108%

Total 104%

3.6 SYSTEMIC SOLUTIONS UNDER CONSIDERATION


03Asset Protection Scheme

• Sponsored by the HFSF and the Ministry of Finance

• Similar to the Italian GACS scheme introduced in 2016

• NPL portfolio Securitisation with Senior notes retained

by the Bank and Mezzanine sold to third party

investors

• Hellenic Republic provides guarantee to Senior notes

subject to conditions

• Favourable risk-weighting of the retained Senior notes

• Facilitates the execution of larger transactions volumes

• Complementary to the Bank of Greece proposal

• Proposal expected to get clearance by DGComp

• Implementation anticipated in 2020

Asset Management Company

• Sponsored by the Bank of Greece

• Transfer of NPE portfolio along with part of the

deferred tax credits (DTCs) to SPV

• SPV funded through Securitisation issue (Senior,

Mezzanine, Subordinated)

• Subordinated notes will be subscribed by the Banks

and the Greek State

• Private investors will absorb Senior and Mezzanine

notes

• Merit of the scheme is that combines NPE deleverage

with improvement in quality of capital

• Implementation anticipated in 2020

3.7 DE-RISKING STRATEGY


03

Other assets

Cash, Securities, Interbank

Asset Mix

Net NPEs

Net PEs

100%

Interbank & Debt Securities

Deposits

Equity

Other liabilities

2018 2023

100%

Liability Mix

100% 100%

12%20%

23%5%

42% 60%

24% 15%

9% 10%

72%75%

12%12%

7% 3%

2018 2023

3.8 NPE CLEAN-UP TARGETS


03

NPE PLAN 2021

Gross NPE Ratio

Net NPE Ratio

2018

53%

27%

Single-digit NPE ratio in 2023Through a mix of organic and inorganic actions

Agenda 2023

More outflows and less inflowsSupported by c.€20bn restructuring volumes in 2017-2021

Scheduled inorganic actions Securitizations and NPE disposals

2023

~9%

~5%

Group NPE Balances (€bn)

3.9 NPE SALES


03Project Amoeba: €1.4bn GBV, €2.0bn legal claim• Secured large SME and corporate loans

• Sale agreed with Bain Capital Credit LP in May

2018 and concluded near end of Oct. 18

Project Arctos: €0.4bn GBV, €2.2bn legal claim• Unsecured personal loans and credit cards

• Sale agreed to consortium led by APS

Investments Capital s.r.o. in Jun. 2018 and

concluded at the end of Oct.18

Project Nemo: c.€0.5bn GBV, equal legal claim• Secured shipping loans

• Sale agreed with Davidson Kempner Capital

Management LP in Jun.19 and concluded in

early Jul.19

Project Iris: c.€0.7bn GBV, €1.7bn legal claim• Personal loans and credit cards, small

business loans, leasing exposures

• Virtual Data Room opened in Mar.19

• Non-binding offers in Apr.19; BOs in Q3.19

2019

completed

2018

completed

completed

Amoeba Arctos Nemo Total

Gross Book Value (€bn) 1.4 0.4 0.5 2.3

Price over GBV (%) 30% 13% 47% 30%

Provision Coverage (%) 73% 90% 45% 70%

RWA (€bn) 0.4 0.1 0.3 0.8

Collateral (€bn) 0.5 n.a. 0.3 0.8

Discount over Collateral Value (%) 15% n.a. 4%

Buyer Bain Capital APS DK

3.10 KEY DATA OF COMPLETED NPE SALES


03All 3 Sales Transactions have been Capital Accretive for Piraeus Bank (~25bps in total)

CIB PERFORMANCE & TRENDS

04

4.1 CIB | WHO WE ARE

50 |

04Largest Greek Systemic Bank

Uniquely Positionedto Capture Growth in

Greece

Customers: 10k companies

Exposure: €15bn

Deposits: €7bn

Leading Market Position

Leading position in Corporate and SME banking

Pioneer in Greek Agriculture business; leading market share in Leasing

Ranked 1st in Brokerage services

Our Strengths

Strong liquidity and disciplined capital management approach

Longstanding relationships with proven resilience over the crisis

Highly skilled professionals with deep knowledge of local market dynamics and products

Low cost-to-income ratio at high 20s% opportunity to invest


4.2 OUR BUSINESS

51 |

We serve all major sectors of the Greek economy providing full range of products and services through the largest network in Greece

1Segments

Large, Structured Finance, Real Estate, Hotel & Tourism, Shipping, SME & Agri

3Subsidiaries/

Non Bank ProductsFactoring, Leasing

& Securities

2Bank

Product factories

Syndications, TxB, Investment Banking,

Green Banking


04

4.3 CIB TODAY

52 |

New Loans Generation

Front book yield is significant higher than

yield of stock portfolio (+40bps)

Pipeline: stands at €2bn, out of which

€0.8bn is already credit approved

50% of 2019 target achieved

Revenues

Revenues of Q1.19 in line with 2019 budget

Aggressive target for 2019 NFI (+15% yoy)

Net fees +14% y-o-y in Q1.19

NII (€mn)

Fees(€mn)

New loans(€bn)


04

• Revenues• Profitability• Market Share

• Processes• Systems

• Credit• Capital• Operational Risk

4.4 OUR STRATEGY

53 |

Grow, Streamline, Protect

Protect Grow

Streamline

The Customer

Our Peopleat the center

of what we do


04

4.5 OUR STRATEGIC PRIORITIES

54 |

1Achieve Sustainable Profitable Growth, Placing the Customer at the Epicenter of What We Do

Grow

Streamline

Protect

Improve cross selling by taking fair share of wallet on clients’ ancillary business Invest in Transaction Banking products Focus on sectors of Bank’s excellence: SME, Agri and Green Claim leading underwriting position Support FDI with acquisition financing expansion

Automate processes Remove duplication and re-design lending process to reduce time to money / time to new product Commit on SLAs Innovate new ways of doing things

Credit Risk minimize new NPE formation Capital Risk prudent and disciplined RWA management Liquidity penetrate non-lending relationships Operational Risk management


04

4.6 DIGITAL TRANSACTION BANKING

55 |

An integrated business model that will create a connected corporate banking experience and uninterruptedtransaction flow

Transaction Banking Suite

Collections

Simplify bookkeeping

Payments

All-in-one

A better grip on cash flow

Cash Management

Trade Finance

Smarter financing

Factoring

Safeguard cash flow

Treasury

Maximize cash performance

Analytics

Deep dive into data


04

4.7 NEW STRATEGIC PARTNERSHIP

56 | CIB PERFORMANCE & TRENDS

04Collaboration for Solutions to Greek Shipping Companies

In its effort to expand revenue capacity and bettermanage balance sheet, the Bank is currentlyexploring to enter into a strategic partnership witha major Asian Pacific financial conglomerate

The focus of the partnership will be on providingtailored and competitive funding solutions toGreek shipping companies

The agreement if conducted, would incorporateboth a one-off fee paid to the Bank for its servicesand a recurring annual fee for ancillary services tobe provided over the tenure of each facility

Business Rationale for the Strategic Partnership

The opportunity relates with the effort to:

increase fees and expand market share in avital sector for the Greek economy

possibility to increase access to capital andother services for the shipping sector

optionality with regards to expansion in otherbusiness areas via the deepening of therelationship with the said conglomerate

The agreement allows Piraeus to leverage on itspartner’s balance sheet and lower cost of capitalallowing a more efficient and profitable use of itsexperience and resources in the shipping sector

4.8 THE WAY FORWARD

57 |

Our Ambition

Become the most profitable CIB franchise in Greece Defend and grow market share at the sectors of focus

Grow revenues generate sustainable, sticky fee income

Improve portfolio returns

Enhance customer experience by developing digital capabilities

Leverage our client relationships and balance sheet to lead key transaction and support the Greek economy

Our Targets

Positive Economic Value Added across all segments

Cost-to-Income ratio: low 30s%

New loan generation: >10% yoy

Optimize capital allocation


04

NPE SERVICING AGREEMENT

05

5.1 PIRAEUS AND INTRUM JOIN FORCES

59 | NPE SERVICING AGREEMENT

05• Piraeus Bank and Intrum enter into a strategic partnership for the management of non-performing assets

• Establishment of the market-leading independent NPE servicer in Greece

• The servicer will manage Piraeus’ existing NPEs and REOs, as well as new inflows

• Two servicer companies, one for NPEs and one for REOs, comprising one operating platform

• The platform will also manage non-performing assets of third parties

• Piraeus’ and Intrum’s top management will join the new companies’ Board of Directors

• The NPE servicer company will be licensed and regulated by the Bank of Greece

• The transaction is subject to customary conditions, regulatory approvals and the consent of the HFSF

5.2 BENEFITS OF THE TRANSACTION


051 Facilitation of sizeable

inorganic actions

2 Enhanced operating efficiency

3

Performance Culture

4

Bank retainsupside potential

5 Re-focus on core banking

Leverage with Intrumexpertise

Enhancement of Piraeus’ NPE recovery prospects, facilitating theoutperformance of NPE reduction targets

Participation in the enterprise value growth of the servicer companies;Piraeus retains assets and proceeds on its balance sheet

PPI savings (cost relief minus fixed AuM fees) of c.€50mn per annum in2020-2021; overall boost of effectiveness in the management of NPEs

Independent servicer with the scale and capabilities to service largeportfolios, facilitating future securitizations and systemic solutions

Management team will re-focus on core banking activities, yieldingimproved results for the Group

5.3 BUSINESS LOGIC AT A GLANCE


05Strong business logic behind the long-term strategic partnership -

creating value for other stakeholders

RBU Employees

Core business

Short and long-term development opportunities

Centre of excellence

Clients & Customers

More tools and solutions

Fair and firm

Prospering companies

Individuals with healthy loans

Greek Society

Long-term industry player

Substantial investment capacity

Increase job opportunities

Contribute to the economy

5.4 TRANSACTION FACTSHEET


05Serviced Perimeter Existing non-performing loans plus forborne / early arrears loans and REOs, as well as any new inflows

€27bn loan exposures and €1bn REOs in the perimeter (est. Q4.2019 figures)

Timeline The two parties aim for transaction closing on 1 October 2019

Board of Directors Comprised of both parties’ executives

Valuation The agreement values the 100% of the platform at €410mn. Intrum has agreed to acquire 80% for a purchase price of €328mn

Shareholder Structure 80% of the new servicer company will be held by Intrum and 20% by Piraeus Bank

Contract Duration Initial term of 10 years

Management George Georgakopoulos will assume the role of CEO in the 2 servicer companies

Employees c.1,300 people will be employed in the new servicer companies

Structure The majority of the serviced NPE portfolio to be transferred to and held by a securitization SPV

5.5 PROGRESS AT A GLANCE


05

Piraeus Bank

ServiceCo

SharesRecovery Banking Unit

Step 1: Transfer of RBU Business to ServiceCo

Piraeus Bank

ServiceCo

Step 2: Sale of ServiceCo, including a long-term SLA

Intrum

Shares in ServiceCo

Consideration

Long-term SLA

80%

20%

Note: diagrams do not explicitly show the creation and sale of the REO servicing company, which follows the same structure

5.6 PIRAEUS’ RBU OVERVIEW


05

~1,300FTEs

~€27bnservicing perimeter

Formal establishment of the RBU in Q4.2013,

based on internal workout and restructuring

teams, as well as top talent from the core Bank

Servicing retail and commercial exposures across

a variety of specialized sub-segments

Significant investments in the operating platform,

processes, product suite and governance

Active involvement and facilitation of previous

and ongoing NPE transactions by the RBU; the

best NPE reduction performance in 2018Collections Restructuring Legal actions

Piraeus' Recovery Banking UnitThe most advanced NPE management unit in Greece

RBU Core Activities

/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAQQjRw&url=https://www.flickr.com/photos/iheartgiraf/6283211485/&ei=iEXQU-GVNpHxiQKvmYGADQ&bvm=bv.71667212,d.cGE&psig=AFQjCNHdOxxmqNQdRgqsgtM2yvLyYufrLg&ust=1406244616927485

5.7 INTRUM OVERVIEW


05• Holistic service offering, covering the entire credit

management chain; c.80k clients

• Local presence in 24 European markets -

market leader in the majority of them; 160 partner countries

• Strong operational performance and collection results

• Significant transaction and partnership experience

Intrum Key Metrics - Q1 2019 LTM (SEKmn) (EURmn)

Revenues 14,079 1,357

EBIT Adjusted 4,877 470

Cash EBITDA 10,283 991

Employees >10,000 >10,000

5.8 PREPARATIONS FRONTLOADED


05

Launch implementation of the transfer of business to ensure autonomous operational continuity of the servicer companies, by:- Segregating IT systems- Separating premises- Setting up the billing processes and

calculation tools- Managing the transfer of resources- Defining Compliance / GDPR obligations

Stress-test systems and processes of servicer companies

▪ Implementation steps for the transfer of the Piraeus RBU business defined

▪ Operational readiness and set-up of 13 dedicated workstreams

▪ New servicer companies fully up and running

End of May

▪ Piraeus and Intrum have started preparations for the implementation phase of the transaction early in the process

▪ Target is for the new servicer companies to be ready by 1 October 2019

▪ The new NPE servicer company will be licensed by the Bank of Greece

SCOPE

Pre-Signing

End of September

APPROACH

Pre-Signing Post-Signing - Implementation Completion

5.9 EXECUTION

67 |

05Steering Committee

Weekly Jour FixePMO Meeting

PMO Team

Workstream Managers

Steering Committee Owners

Functions involved

Compliance & GDPR

PB Organization

& GovernanceHR

Credit & Delegated authorities

TechnologyOps set-up

(premises, facilities, branches)

Billing Engine, KPIs

Regulatory & Incorporation

Securitization and related processes

Core Processes and

Invoicing

▪ IT

▪ Organosis

▪ Corporate Governance

▪ Organosis

▪ Finance & MIS

▪ IT

▪ Organosis

▪ Credit

▪ Organosis

▪ IT

▪ Organosis

▪ IT

▪ Legal

▪ Procurement

▪ Branches

▪ Finance & MIS

▪ Legal

▪ IT Facilities

▪ HR

▪ Organosis

▪ IT

▪ Organosis

▪ Finance

▪ IT

▪ Operations

▪ Treasury

▪ Tax

▪ Accounting

▪ Corporate Servicing Unit

▪ Organosis

▪ IT

▪ Finance

▪ Regulatory Affairs

▪ Legal

▪ Strategy

▪ RBU

▪ HR

▪ Participations

▪ Finance

▪ Compliance

▪ Inv. Relations

▪ HR

▪ Legal

▪ Operations

1 65 7 82 9 1043 11

Cost Monitoring

ServiceCoset-up

12

Communication

Intrum ownership


5.10 FINANCIAL IMPACT


0510-year periodUp to 20212019

NPV of the 10-year cumulative net income impact c.€100mn, including upfront consideration proceeds

This impact does not include any acceleration in the execution of Piraeus’ NPE reduction strategy

Positive impact on PPI (cost relief minus fixed AuM fees) of c.€115mncumulatively (Q4.19 to end-2021)

Success fee for the execution of the existing NPE plan expected to be booked in the CoR line

All-inclusive positive impact to capital through to 2021 of c.55-60bps as per existing NPE plan

In a scenario of 10% over-performance vs existing NPE plan, net capital result through to 2021 increases to c.100bps

Capital accretion of c.80bps will arise from the €0.4bn valuation of the NPE servicing platform

Closing expected 1 October 2019; marginal operating P&L impact from Q4.2019

5.11 BASELINE FINANCIAL PROJECTIONS

69 |

2019-2021 Net Income (€bn)2019-2021 PPI (€bn)


05The Illustrated Impact Takes into Account the Baseline Scenario of our NPE Plan Execution

CLOSING REMARKS

AGENDA 2023: KEY PILLARS

71 |

b. Satisfying Stakeholders remaining the top priority for the Bank

Value Creation by the Leading Bank in Greece

a. Strategic Targets paving the path to increasing profitability

Efficiency & Simplification

De-risking of Legacy Assets

Growth of Core Assets

c. Sustainable Solutions producing sustainable returns

CLOSING REMARKS

2023 ROADMAP

72 |

Restoration of Fundamentals in the Baseline Scenario

2018

54%

51%

losses

~200bps above the expected requirement

high single-digit return

single-digit ratio

low 40s

RoTΕ

NPE

Regulatory Capital

Cost to income

14.0%

CLOSING REMARKS

ROA DRIVERS

73 |

a: actual; f: forecast

Pre-Tax RoA Improvement Driven by Cost Efficiency

Growth anddevelopment of

the business

Efficiencyincrease andsimplification

De-risking andcost of risk

normalization

+0.1%

+0.5%

+0.2%

CLOSING REMARKS

Pre- tax RoA

DisclaimerThe accompanying presentation has been prepared by Piraeus Bank S.A. and its subsidiaries and affiliates (the “Bank” or “We”) solely for informational purposes. For the purposes of this disclaimer, the presentation that follows shall mean andinclude materials, including and together with any oral commentary or presentation and any question-and-answer session. By attending a meeting at which the presentation is made, or otherwise viewing or accessing the presentation, whetherlive or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or anyinformation contained herein.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does it constitute an offer orcommitment to lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or to commit capital. This presentation is not intended to provide a basis forevaluations and does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. Norepresentation, warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the information contained in this presentation in making any investment decision in relation to any form of security issuedby the Bank or its subsidiaries or affiliates or for any other transaction. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Bank. You are solelyresponsible for seeking independent professional advice in relation to the Bank and you should consult with your own advisers as to the legal, tax, business, financial and related aspects and/or consequences of any investment decision. Noresponsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information.This presentation does not purport to be comprehensive and no representation, warranty or undertaking is made hereby or is to be implied by any person as to the completeness, accuracy or fairness of the information contained in thispresentation. The Bank, its financial and other advisors, and their respective directors, officers, employees, agents, and representatives expressly disclaim any and all liability which may arise from this presentation and any errors containedherein and/or omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith. The Bank, its financial and other advisors, and their respective directors, officers, employees, agents, andrepresentatives accept no liability for any loss howsoever arising, directly or indirectly, from any use of the information in this presentation or in connection therewith. Certain information contained in this presentation is based on estimates orexpectations of the Bank, and there can be no assurance that these estimates or expectations are or will prove to be accurate. This presentation speaks only as of the date hereof and neither the Bank nor any other person gives anyundertaking, or is under any obligation, to update any of the information contained in this presentation, including forward-looking statements, for events or circumstances that occur subsequent to the date of this presentation.

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The Bank has included certain non-IFRS financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-IFRS financial measures should be considered in addition toIFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS.Certain statements contained in this presentation that are not statements of historical fact, including, without limitation, any statements preceded by, followed by or including the words “targets,” “believes,” “expects,” “aims,” “intends,”“may,” “anticipates,” “would,” “could” or similar expressions or the negative thereof, constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Examples of forward-looking statementsinclude, but are not limited to, statements which are not statements of historical fact and may include, among other things, statements relating to the Bank’s strategies, plans, objectives, initiatives and targets, its businesses, outlook, political,economic or other conditions in Greece or elsewhere, the Bank’s financial condition, results of operations, liquidity, capital resources and capital expenditures and development of markets and anticipated cost savings and synergies, as well asthe intention and beliefs of the Bank and/or its management or directors concerning the foregoing. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which aredifficult to predict and outside of the control of the Bank. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. We have based these assumptions on information currentlyavailable to us, and if any one or more of these assumptions turn out to be incorrect, actual market results may differ significantly. While we do not know what impact any such differences may have on our business, if there are suchdifferences, our future results of operations and financial condition, could be materially adversely affected. You should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date onwhich such statements are made. The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances after the date on which such statementis made, or to reflect the occurrence of unanticipated events.

PIRAEUS BANK GROUP HEADQUARTERS4, Amerikis Str., 105 64 Athens, Greece

T. +30 210 333 5026www.piraeusbankgroup.com

PIRAEUS BANK INVESTOR UPDATE

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