Piraeus Bank S.A. · ATHEX:TPEIR
Piraeus Bank — 9M 2006 Earnings Presentation
45 slides from Piraeus Bank's earnings presentation, 2006
Slide 1: Piraeus Bank Group Presentation
OMIAOZ TPANEZA2 NEIPAIO2 Napouoiaon T P. AN E Z A Eraipik| Korvevikr EuSivn TpaneCag Neipaids NEIPAINS Koivavia = Nepi6éhhoy Mohr
Slide 2: Contents
1 ! " 2 2 # 7 3 # # $ % 2006 17 4 #% # & # ! - & ' NA 20 5 ( # # $ 26 % 29 & 41 & ! 42 " # 43 –$ % # - &' 44 1
Slide 3: Group history and acquisitions
+ " 2005 (# # ECB (Piraeus Bank Egypt) (# Atlas Bank (Piraeus Bank Beograd) (# # Evrobank (Piraeus Bank Bulgaria) 2004-2008 & , / , 2004 (# Interbank New York - # Marathon Bank # " 2003 ) # ETB bank 2002 (# * bank ) # +NG , 2000 &$ ) , Xios & * 2000-2003 (# Pater Bank (Piraeus Bank Romania) $ # / (#
Slide 4: Group growth since 1991
# #& ( # (€) 28,7 " # - # (%) 12,2 30 11,6 • ( ' 23,5 12 11,0 25 10,0 10,3 16,8 10 • ) ' 20 14,7 14,9 7,6 8,1 12,3 8 6,2 (# 15 10,5 8,1 6 10 • + # ( 4 5 0,08 2 • # 0 0,3 1991* 1999* 2000* 2001* 2002* 2003 2004 2005 09.'06 0 " & # 1991 1999 2000 2001 2002 2003 2004 2005 09.'06 ( 490 500 K 449 A & ( 8
Slide 5: Investment highlights
)' ! • Universal , , ! " (/ , & ) • 115 " 5 , " ( • 4 # ' ", # ( , (# • ( . " # # # , • " . 1 " . # , " # # #% # & , & . , , & • €28,7 " # , 490 , 8.979 # & 700 -. • €19,7 " # " # 12,2% # & • + , €1,6 " , " , 11,4% Tier + 7,7% & .) " # ' ' # • ( # : Moody’s Baa1, S&P’s BBB+, Fitch BBB+ (& ) , &# ( #
Slide 6: Market shares in E-banking and Leasing
# " # 15,7% 16% 14,2% 12,2% 13,2% 12% 11,0% 11,6% Leasing 15,0% 9,8% 11,0% 8,6% 9,8% 9,7% 9,3% 9,3% E-banking 20,0% 8% 8,5% 7,6% - / 9,5% # * 0% 5% 10% 15% 4% + & 2005 * - ’06 0% #' & # / ) # ( &% / 0' ( &% $/ .'04 .'05 ) .'06 . ) $ ) & + & .’06 5
Slide 7: Piraeus Bank Group Overview
Ouldosg TpatreZac Neipaiws Etriokotrnon OpiAou Tpdtregac Neipaiws TPANEZA 6 NEIPAIOZ
Slide 8: Loan growth and market share
- # & & $ 120% / % 110% / %1 ) 30.09.06 / 0' ) & ) # ) 30.09.06: 114% € 19,7 + € 21,3 + 110% 110% 110% 100% 103% 90% 91% 90% 89% 89% 88% 80% 70% 60% ) # % +" 50% 36% & - 21% " ) 40% # 34% 1 #.'04 ! .'05 1 #.'05 ! .'06 .'06 ( &% // 0' 1#! & - 23% 1#! ( &% // 0' & ) # 9% 0 36% 41% • 31% '( # (24% ) •
Slide 9: Retail lending: mortgages and consumer loans
• 37% '( # ' 2 " : # # " " & # + / ) # + # " 4.500 3 3.000 4.000 +37% +30% • 30% '( 3.500 2.500 " : ) 3.000 ) , 4.157 (€ 2.500 2.000 2.836 (€ ( 3 , 2.000 3.036 3 « 1.500 2.178 1.500 » (home equity) 1.000 ( # .'05 .'06 1.000 ) .'05 ) .'06 • - , 1 # ' - 1 - & " 34%: $ % $ % 8.000 +34% 4.600 +23% # ' &
Slide 10: winbank e-banking
2! 4 & ( • 292 100 " • 48.000 - 63.000 # ' • 1,6 " - 1,7 # ' ( - ! ) • 115 / 5 " ( • ( & & " # 10-15 / " '( # # , # « » , 5 / # % % : # >56 178 61% 4-5 19 7% • winbank: & ' « ' » ", 3-4 19 7% <26 76 25% 170.000 , 25 " " • % ( # # internet '( 45% 2005 • 50% # 7. . . I.K.A. www.winbank.gr # & # winban
Slide 11: Deposits and mutual funds
2! 1 " & ( / 0' * ( &% 19.667 16.778 20.000 17.000 24% 21% 16.000 18.000 15.884 " (39% ' 15.000 13.884 31% 16.000 " ' $ ): 14.000 30% 14.000 12.168 13.000 19% 10.698 12.000 '( & 12.000 10.241 21% 16% 10.000 11.000 54% 10.000 9.096 43% 13.200 8.000 10.934 9.000 25% 6.000 8.000 7.654 4.000 6.139 '( #
Slide 12: International subsidiaries
& $ • 198 ( () ’06), 3.176 + & & # / % $ &% . 1 #. . 1 #. . 1 #. • $9 2006 2005 1% 2006 2005 1% 2006 2005 , >! , Tirana Bank 379 329 15% 35 33 6% 13,2% 12,9% ( > , Piraeus Bank Bulgaria 1.040 756 38% 64 65 -2% 6,6% 5,2% ' 1 > , Piraeus Bank Romania , & 690 511 35% 39 30 30% 2,4% 2,3% , > , Piraeus B
Slide 13: Business segment performance
) 4 & ( " ( ' ( &% / 0' • %" ( +57% 2.500 : 2.000 +95% 40% ) 1.500 2.573 (€ $ 1.000 2.079 1.634 500 1.067 14% & 0 $ .'05 .'06 .'05 .'06 13% # $ / 0 &# /' + 17% & " 5 + # 6 ) 140 ( " 120 60% ING), 13% 100 60% ) 80 1 # 128 60 62% 62% 70% 70% ( 40 80 69 54 20 42 32 0 9M '05 9M '06 9M '05 9M '06 9M '05
Slide 14: Non-performing loans
: - , - # • $ # ' " ( ' " (NPLs) 2,44% 6 3,80% ) 2005 O ! " " • , $ & NPLs < # ! # 2,5% ' $ ) 1 # , ! ) + ) / " NPLs • % , (NPLs) 4% 100% , # , (*) 3% 80% " (**) 60% ( ' " 2% 4,08% 3,80% " # , (€117 9 ’06 3,41% 87% 40% 93% 80% 76% €138 ’05) 2,44% 1% 20% • ! 0% 0% ( ' " .'04 ) .'05 .'05 ) . '06 .'04
Slide 15: Primary Dealer and capital markets
" • 9,5% " # # 2006 (4 & ) • Primary Dealer $ # 1999 • # # # " # " ' '€18,5 " 2005 • # " " 3 # " " 6 & ' " , & ( & ( ' • % " " # " • % "' " # (+ ' 2005) • H ETBA BI. ., & # 65%, " 35 # 2.500 40.000 # 14
Slide 16: Customer satisfaction and loyalty
) # : " , 9 ' +# # ) : 115 / " 5 , ( ( #& " : 1 0' #% & # ) ' , ' ) : ( ' # €30 " .; # 100% 96% 96% , # ' & +) : " ## # ' 95% 95% 95% ( & , & , " & , & " ) 90% " # # & ') : ! 85% 80% 2002 2003 2004 2005 & bonus & # % : " " , # &%: ‘Centrum Research’ ( ' ESOMAR) ) #% # ! :" "" 9 , " ' &# ' ' $ & ) #
Slide 17: Nine-month 2006 financial results
Ouldosg TpatreZac Neipaiws OIKOVONIKG ZTolxeEia Evveaunvou 2006 TPANEZA 16 NEIPAIOZ
Slide 18: 9M 2006 highlights
) '( & " # 151% '( & " #' €342,1 (€236,6 +74% " ING 1. . 7 2006) + % " , , , (& 83% (€264,2 & 2006 !" €0,32 €144,2 ) $% '( " 134% €1,30 '( & " 26% & 29% " NIM # ' 3,20% * " « "» 46,6% 56,8% '( # 31% & 27%, ( " ( ' " 136 . . 2,44%, , 11,4%, Tier I 7,7% 17
Slide 19: Key financial figures and ratios
#& - ! 7) 1 ( ( € # ) . 2006 1 #. 2005 1 #. 2004 12% 11,1% 11,0% 11,4% 2,4% 2,2% # 28.719 23.545 16.846 3,7% 8% - # ! 19.667 15.884 12.168 & # 16.869 14.030 11.348 4% 8,7% 8,8% 4.439 3.516 1.756 7,7% ." , 1.664 1.608 1.269 0% & " " 342,1 263,8 127,3 ! '05 1 #.'05 . '06 & # / # (%) 67,2 65,6 69,5 Tie
Slide 20: Greek economy and regional prospects
Ouldosg TpatreZac Neipaiws EAAnvikh O1kovopia - EAAnVIKO Tpatreqiko ZUOTHYA NMpoomtikés o¢ NA Eupwttn & Ayopés AvatoAikhs Meooyeiou TPANEZA 19 NEIPAIOZ
Slide 21: Greek macroeconomic forecasts
* 2005 2006 ( ) 2007 ( ) 2008 ( ) 2009 ( ) + (€ " ) 181,1 195,2 209,3 224,1 239,8 ' ) + . 2001 / , (€) 16.340 17.350 18.577 20.140 21.410 0 11 ' # '( (%) 3,7 4,0 3,9 4,0 4,1 #% + - 0 $ : # (%) 10,4 9,2 8,2 7,4 6,5 A1, A, A (Moody’s, S&P, Fitch) ( . . %) 3,7 3,4 3,0 2,8 2,6 6 / ' (% ) (5,2) (2,6) (2,
Slide 22: Greek banking market and household debt
)'# 117 - # / (%) 83 55 63 45 / (%) 37 54 / 38 (%) • « » 18 ' 38 ) # / (%) 25 '05 12 " '05 • < ’90 16 " '00 & / (%) 13 6 2003 54 32 100.000 • $ 29 # ( &% / , & ( &% ) & ' % !, '01-'05 # 25,0% + 20,0% 2005 15,0% + / 10,0% .' & 8 && + &% 5,0% & 0,0% ( 8 70% 80% 90% 100 110 120 130 140 150 160 170 180
Slide 23: Banking penetration in Greece
# 114% 115% 117% 120% 110% 100% 103% 90% 83% 71% ( &% / (%) 62% 60% 47% 36% 31% " 30% 1995 1997 1999 2001 2003 2005 # # «6 & # & # ' & # # ( & & # ( & . ' # # # # 2% 12% ) » 1987 1991 1993 1994 1997 2000 2003 % ) # 0' ) ) # + ') # ') €3.000 # # ) #% €900 # ) # ') €25.000 22
Slide 24: Southeastern Europe macro outlook
- # 1 #% & 3 & & 6,5% • %# # # , , ( % '06-'07 ( ) 6,0% ( , & " ( , & . & 5,5% - - !, 5,0% 4,5% 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 # #7 % 2006 (€) = $ $ (: * . 3 . 2 8 2 3 . 82 2006 ( ) 2007 ( ) 2006 ( ) 2007 ( ) 2006 ( ) 2007 ( ) 2006 ( ) 2007 ( ) 2006 ( ) 2007 ( ) (+ ) 7,7 8,5 24,0 26
Slide 25: Regional banking markets
; ; # , : ' #& # 0 ( # 2005) # # 7 % (2005, € $ ) !, (2006 # .,%) ( &% / ( ' 2006) + 11 16.34 3,8 84% • $ # 1 # , & 69 1,13 5,6 57% # ( " # - 3 1,96 5,0 15% • 4 &* # : - 8 2,65 5,5 25% + ‘07 . & 8 3,38 5,6 45% 22 3,80 5,5 24% 0 20 40 60 0 2 4 6 8 10 0 2 4 6 0% 20% 40% 60% 80% 24
Slide 26: Financial targets
Ouldosg TpatreZac Neipaiws XPNYATOOIKOVOUIKO! ZTOXO! TPANEZA 25 NEIPAIOZ
Slide 27: Financial targets to 2008
9 &* ) # 3- ... 500 400 (€ # ) '( " 263,8 300 101,5 + + # , 25% 200 66,2 127,3 100 =06-=08 0 ! & )& 7 #% 2002* 2003* 2004 2005 2008 7' 3 & / /5 + 69,4% 70% #% & : 63,1% 59,9% ) # # 60% 57,9% # &# / ) (" , " « 50,0% 50% ) , " » < 50% 2008 40% + 0' 7 ) ' 2002* 2003* 2004 2005 2008 # # ) # # ROavE 25%
Slide 28: Asset quality targets
…* ) # - + & • 1 ," # 14% " # 14,0% 15% « ». '( # " 11,6% " " & & / 10% 8,1% " . 5% 3,9% 20% / 0,3% " 0% .'91 .'98 .'01 .'05 2008 • " "' ( # , 4,0% ', # ') / ) 3,0% 2,5% • # ) " 2,0% 4,15% 4,08% " ( ' " 3,41% 2,44% 2,50% 1,0% & winbank (NPLs) < 2,5% 0,0% ( ) . '03 .'04 .'05 ) .'06 2007 27
Slide 29: Appendix
% - 29 - & 41 - & ! 42 - " # 43 - , &' 44 28
Slide 30: ROE and income statement
ROavE ( , &" ! , ) 30% 29,9% ! 7) 1 ( (€ # ) 9 ‘06 9 ‘05 1 yoy 25% / 0 ' # ' + 500,5 397,2 26,0% 21,0% / 0 ' + %0 131,7 102,0 29,1% 19,5% 6 " 11,1 17,1 -35,2% 20% - 21,0 55,3 -62,1% 14,9% " # , ". / 138,2 3,6 >100,0% 15% / " 87,1 46,8 86,0% ! # 0 +) 889,6 622,2 43,0% 10% 12M'04 9M '05 12M'05 9M'06 '
Slide 31: Net operating income
'( $ # & " 30% • 30% '( # & " ( / ( 889,6 900 ' & " ". , ) 43% $ /# ,) 43% & #' + 800 159,2 +. • & " $ 7 # & ' 87% 700 622,2 131,7 & : 29% 5 + # & " 600 58,9 0 • % (€ # ) 500 102,0 & " '( # 400 6 ": / 0 ' # 26% 500,5 ' + " " ' 300 397,2 / , & 72 / 200 " & ) . ’05, 33 100 / : 54% &# " 39 ( 64 98,2 '
Slide 32: Net interest margin
& & + "* %" NIM 4,5% 3,2% , : 4,0% • $ # 3,29% 3,31% 3,33% 3,26% 3,29% 3,5% 3,20% 3,20% # # # ' " 3,0% • & 2,5% (spreads) ' 2,0% 3 1,5% 1,0% 0,5% 0,0% 3 '05 6 '05 9M '05 12M '05 3 '06 6 '06 9M '06 (*) & " . . # ' 31
Slide 33: Spreads
+ & 6 # Spreads 1 !3 # # Spreads $ # 1 ) • & 8% 4% & 7,98% 7,88% 7,88% 7,88% 7% 7,74% 6% 3% 3,17% 3,08% 3,03% 3,01% 2,98% • , 5% s & 4% 2% 1,63% 1,56% 1,58% 1,49% 1,46% 3% 2,58% 2,46% 2,39% # ( 2,28% 2,18% 2% 1% - # / ) # # ' 1% 0% • 0% 2004 6 .'05 2005 6 .'06 9 .'06 2004 6 .'05 2005 6 .'06 9 .'06 &
Slide 34: Net fee income
'( & & 29% €132 • & " & # (& 14% ( ' 66% & " 1 0 ) # + !0 % 131,7 & ), ( 100% 29% 17,2% " " 120 29% 31,1 23,6% + #% 102,0 78% 80% 7,5% #% # 17,5 13,1 10,0% ) 71% • 78% '( & 80 7,7 60% 1 $ " ,& #7 ) ( # 40% 14% 75,3% 87,4 66,4% 40 76,8 # 20% #% #% • $ & " 0 0% , (& 9 .'05 9 .'06 9 .'05 9 .'06 71%, ",
Slide 35: Trading and other income
6 " - / ( 6 " /' + ( /# ,) & ' (*) /' + ( # # ( & 7) +.X /# ,) & / 0 /' + ( & 7 • " 58,9 + # !( 7 # 60 159,2 160 50 $' ('# # ING (€129,8 40 $' #' + 52,0 120 ING) ) , 30 29,4 $' ) FX 129,8 15,2 ( # # ' " 20 &' 80 ( # ( 10 12,9 10 FX 0 1,2 & & &' # , " ' -3,1 &)& 40 -10 9 .'05 9 .'06 , 15,2 & & 12,9 0
Slide 36: Operating expenses: staff costs
/ # ( & (# • ' # (" (& 12%. ! &# 1 ) # ! ) , +) (# '( 414,2 250 ' # ' 17% 400 17% 29,8 225 15% 15% 218,1 17% 353,6 10,6 360 9,1 200 189,8 • $ " ' 320 4,1 175 " " 280 ) 150 ) ( (& 240 12%. (# , 12% 125 200 384,4 12% 344,5 100 207,5 15% ( '( ( 160 185,7 • !, + 120 75 ) # ! & )& 7 #% 80 50 $% % - : 40
Slide 37: Operating expenses: other costs
/ # ( & (# • # (" " (# (& 10%, # #& 5, + 1 # , +) 1 # " ' 163,4 163,4 160 19% 160 19% 19% 22,6 # 19% 16,3 137,3 1 7% 137,3 140 • 140 16,2 22,3 (" " 4,0 6 ( # 120 +% ) (# 120 19,5 18,2 - ) 7 0 19% 100 ) '( 100 # 9 ) 17,6 24,9 • !, , +) + # 10% 80 5, + ) 80 18,6 ( # & )& 7 #% $% : 147,1 133,3 60 26,5
Slide 38: Technology and automated payment systems
) & ( 3' ) # / ! # 0' ) +# $ % APS , # # (Automated Payment Systems) & on-line deposits ATMs back-office %/ ') , +# ! ATMs / & ( .$. &)&' - , &)&' , ' ! / , &' # ) # ') % ) $ # + ) & '&$ # ) 37
Slide 39: Assets and liabilities structure
)' & + # ' & # 0 # '- ’06: € 28.719 # • $ # ' 100% 100% 5,2% & 1 0' 67% # ' 90% 90% 16,4% 1 #% 13,0% • $ & 80% 2,1% 1 #% 80% 21,8% 70% 70% ECP-EMTN- ' 74% ( . ' - + # , RMBS * & ' 60% . ! & 60% , ') 50% / ) 50% / 0' 67,2% ( &% 40% 40% 52,4% 30% ( & 7 30% + #! :+ # 7 20% $ 7 # 20% + # 10% 4,6% 10% 3,
Slide 40: Loans and deposits
'( - # " # +31% 19.667 19.000 • $ # (& 31% 15.884 4.157 & # 24% 14.980 + '# 2005, 14.250 12.168 3.386 2.836 3.036 / ) # & # ' # ( . + 10.241 2.318 2.220 ) 2.178 19% ), " 9.500 1.568 (€ 1.704 " 1.568 8.123 6.069 6.487 • 2! & '( : 4.644 3.440 4.750 - # (37% ) & $/ 4.552 (30% ) 3.665 3.600 3.698 3.694
Slide 41: Capital base and funding
' # : , !, / 0' ) . ’06 (y-o-y) $ # • $ & 27.000 26.031 +32% & 94,6% # " ' & 24.000 4.723 (& 23% 21.082 , # " 21.000 19.648 + #% 9! 17,2% « » " ' 3.536 4.439 18.000 2.808 3.516 6,8% 14.791 3.105 EMTN, ECP, • €750 # 15.000 RMBS, - + # ) 1.688 #7 (RBMS) 12.000 1.169 (€ 16.869 & 21,7% • " / 0' & 9.000
Slide 42: winbank internet business awards
& $ #% ! 0 , . 2006 / • 12 ." ) ' ( 3 4,8% 3,0% ( ) 5 < 2,5% & 34,0% • # 1998 • .). • / # • +" 6 40,4% & 15,3% • winbank internet business: 1 & # “Best Corporate/Institutional Internet Banks” " " # “World’s Best Internet Banks” " Global Finance () ’06) • H winbank-internet '& 1 (' e-banking " " ' "
Slide 43: Share performance and ratings
, ! 52 " " / " 380% 150% 330% 140% 130% 280% 120% 4 > 230% 8 7 110% +4 +5) 5 ;' 180% FTSE/ % - 100% 130% 90% 80% 80% -04 -04 -05 -05 -06 -06 -03 -03 -04 -04 -05 -05 -06 1 -05 -06 -06 -06 -06 -05 -06 3 ) ) ) ) + + + + ) ) + “ ! ! 12 $ 3 ... ' & ' ' +' ' % $ ... “… &'$ , .. ...” 0 3 6 9 12 15 -Moody’s
Slide 44: Peer comparison
$ # ' 5 & ! '&$ ) 80% & • % # # 35 & 30,3 30 • $9 25 19,5 19,3 18,9 20 " " ! 14,8 15,1 " 15 12,2 11,5 11,7 11,0 # 10 & 5,4 5 4,2 2,1 1,9 " ' 0 "' & EFG Alpha Emporiki ' ; - # & #: / # 30.09.2006 & " () .=06) 43
Slide 45: Investor relations contacts and calendar
-$ % # - &' / ') " '& " ) -; # , & -; # , Manager -* ' , ssistant Manager $ % # 2007* -X & , Assistant Manager 4, 105 64, & 2006 , 31 + ‘07 . :210 333 5026 - 5198 - 5027 - 5739 - 5062 Fax : 210 333 5079 1 3 2007 investor_relations@piraeusbank.gr ,9 ? ‘07 Bloomberg: TPEIR GA <F8> www.piraeusbank.gr R