Eurobank Ergasias Services and S A : First Half 2021 Financial Results

August 31, 2021

1H2021 Financial Results

• Net profit1 up by 10.7% in 1H2021 to €195m o Net profit2 of SEE operations at €73m
• Core pre-provision income up by 2.4% y-o-y to €446m
• NPE ratio 7.3% pro-forma for "Mexico" securitization
• Provisions over NPEs at 63.3%, up 140 bps q-o-q
• New loan disbursements in Greece €3.4bn in 1H2021
• Customer Deposits up by €2.4bn in 1H2021
• Total CAD 15.6% and CET1 13.2%
• Strengthening international presence through the agreement to merge Eurobank Beograd with Direktna Bank in Serbia and the acquisition of a 12.6% stake in Hellenic Bank in Cyprus
• Successful completion of the 2021 SSM Stress Test: Capital depletion in terms of FL CET 1 ratio at 433bps as at the end of 2023, among the lowest between European banks

1. Adjusted net profit.
2. Adjusted net profit.

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August 31, 2021

"The economy, globally and in our main markets, has largely adapted to the pandemic conditions. Despite the spread of the delta variant, sentiment remains positive, as shown by domestic economic activity indicators. Deposits keep increasing in the banking system, real estate prices are moving upwards and the asset quality trends remain resilient. Foreign direct investments are accelerating across different sectors and economic activity recovers. The most impressive instance is tourism, as in Greece, revenue estimates now exceed 50% of 2019. It appears that the strong growth will extend into the 2021-2026 period, for which we expect annual growth of 3.5-4.0%, on average, underpinned by the Resilience & Recovery EU Funds. Eurobank is ready to take advantage of this opportunity, provide financing and support its clients.

In the second quarter of 2021, our diversified business model produced another set of solid results. We continued financing the economy with new loan disbursements of 3.4bn euro in the first half of the year. Core pre-provision income was up, mainly on the back of increased fee and commission income. The better than expected asset quality trend continued with NPE formation being negative. Net profit grew to near 200m euro for the first half of 2021, once again with a distinct contribution of our international subsidiaries.

Overall, we keep delivering in a consistent way on all our priorities: profitability is in line with our expectations, the NPE ratio is reaching single-digit, close to 8%, by year-end, and capital will be strengthened further, above the initial target. At the same time, we announced two agreements to increase our regional presence, in Serbia with the merger of our local subsidiary with Direktna Bank and in Cyprus with the acquisition of a 12.6% stake in Hellenic Bank. We will continue to explore opportunities to further expand our core markets, both organically and non-organically.

As the signs of climate change intensify, the need to integrate and implement ESG criteria in every aspect of economic activity becomes more pronounced. ESG is a cornerstone of our business. In response to the wildfires that hit Greece, Eurobank committed to an array of actions to mitigate the social and environmental impact."

Fokion Karavias, CEO

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August 31, 2021

1H2021 Financial Results

Adjusted net profit increased by 10.7% to €195m in 1H2021, from €176m the respective period of 2020, with net profit after restructuring costs and other one-off items reaching €190m, against losses a year ago. More specifically:

1. Net interest income fell by 2.8% in 1H2021 to €670m, but grew marginally (+0.1%) against 1Q2021 to €335m. The net interest margin receded to 1.94% in 1H2021, from 2.09% the respective period of 2020.

1. Net fee and commission income expanded by 16.0% y-o-y in 1H2021 to €209m, mainly due to fees from Network activities, rental income and lending business. Fee and commission income rose by 11.8% q-o-q to €110m and accounted for 63 basis points of total assets in 2Q2021.

1. The increase in fee and commission income more than offset net interest income reduction, thus core income rose by 1.1% y-o-y to €879m in 1H2021. Other income amounted to €45m in 1H2021, compared to €66m in 1H2020. Total operating income reached €924m in 1H2021, down 1.2% y-o-y.

1. Operating expenses decreased by 0.4% in Greece and 0.1% at a Group level against 1H2020 to €433m. The cost to income ratio remained well below the 50% threshold at 46.9%.

1. Core pre-provision income were up by 2.4% y-o-yand 4.5% q-o-q. Pre-provision income declined by 2.1% in 1H2021 due to lower other income but grew by 12.5% in 2Q2021.

1. Loan loss provisions reached €224m in 1H2021 and corresponded to 120 basis points of the average net loans.

1. SEE operations were profitable, as the adjusted net profit reached €73m in 1H2021, compared to €82m in 1H2020. Core pre-provision income increased by 3.9% y-o-y to €127m. Eurobank is strengthening international presence through the agreement to merge Eurobank Beograd with Direktna Bank in Serbia and the acquisition of a 12.6% stake in Hellenic Bank in Cyprus. Both transactions are in line with Eurobank's strategy to further expand its international activities and create

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August 31, 2021

additional value for its shareholders via targeted acquisitions, mergers or joint ventures.

1. In terms of asset quality, the NPE ratio fell to 14.0% or 7.3% pro-forma for "Mexico" securitization in 1H2021. The stock of NPEs decreased by €110m in 2Q2021 to €5.7bn. The NPE formation was negative by €43m in 2Q2021. Provisions over NPEs increased by 140 basis points q-o-q to 63.3% at the end of June 2021. The "Mexico" securitization is progressing according to the timeline with a binding offer received by DoValue3 in August. The estimated impact of the transaction on phased- in total CAD is well below initial expectations (of 50bps) at 10bps. Closing and de- consolidation of NPEs will take place in 4Q2021. The 1H2021 performance combined with the "Mexico" securitization confirm the target for a single-digit NPE ratio at the end of the current year.

1. CET1 and total CAD reached 13.2% and 15.6% at the end of 1H2021 against total SREP capital requirements of 6.2% and 11.0% respectively. The fully-loaded Basel III CET1 increased by 20 basis points q-o-q to 12.1% in 1H2021. RWAs amounted to €41.2bn in 1H2021.

1. Eurobank completed successfully the 2021 SSM Stress Test (ST), which was coordinated and conducted by the European Central Bank. Under the Baseline scenario, the Group was capital accretive by 290bps over the 3-year ST horizon, reaching, on a fully-loaded basis, total CAD ratio of 17.5%, and CET 1 ratio of 14.9% as at the end of 2023. Under the Adverse scenario, the capital depletion in terms of FL CET 1 ratio amounted to 433bps as at the end of 2023, among the lowest between European banks, and to 517bps at the year with the highest impact (2021). Accordingly, the FL CET 1 ratio stood at 7.6% as at the end of 2023 and at 6.8% at the year with the highest impact (2021). On a transitional basis, the CET 1 ratio at the end of 2023 stood at 8%.

1. New loan disbursements in Greece reached €3.4bn in 1H2021 and €1.8bn in 2Q2021. Total gross loans amounted to €41.1bn at the end of June, including €3.5bn senior notes. Corporate loans amounted to €22.6bn, mortgages to €11.5bn and consumer loans to €3.4bn.

1. Customer deposits rose by €2.4bn in 1H2021. Savings and sight deposits amounted to €35.6bn, while time and other deposits stood at €14.1bn. The loans to deposits ratio further improved to 75.4%, from 77.7% in 1Q2021. The liquidity coverage ratio also improved to 166.4% in 2Q2021, from 140.6% in 1Q2021.

3 Subject to certain conditions, including HAPS and SRT approval.

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Adjusted Net Profit

(€m)

	195
176
1H2020	1H2021

Capital Adequacy Ratios

(%)

	15,6
13,2
CET1	CAD

Loans / Deposits

(%)

81,6
	75,4
1H2020	1H2021

August 31, 2021

Pre-provision income

(€m)

501	491
1H2020	1H2021
	NPE Ratio
	(%)
15,3	14,0

1H20201H2021

Provisions / NPEs

(%)

60,6	63,3
1H2020	1H2021

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