Eurobank S.A. · ATHEX:EUROB

Eurobank — EFG Eurobank Ergasias — 9M 2002 Earnings Presentation

27 slides from Eurobank's earnings presentation, 2002

  1. Slide 1: Nine Months 2002 Results

    EFG QD Eurobank Ergasias NINE MONTHS 2002 RESULTS

  2. Slide 2: Hosts and Contents

    Hosts and Contents Nine Months 2002 Byron Ballis, Deputy CEO • Business Review Nikolaos Karamouzis, Deputy CEO • Financial Highlights • Financial Review Paula Hadjisotiriou, CFO 2

  3. Slide 3: 9M 2002 Business Review

    9M 2002 BUSINESS REVIEW

  4. Slide 4: Lending expansion continues strong

    Lending expansion continues strong Consumer Loans Consumer lending - robust growth 36.6% y.o.y Outstanding Balances –market share gain of 1.7, total market share 26%(June ‘02) In € m 3.000 2,517 Mortgage lending –up 34% y.o.y in September 2.500 –conservative lending criteria 1,843 –controlling 11% o

  5. Slide 5: Asset management and Insurance

    Asset management and Insurance • Deposits - gaining market share from 10% at end-2001 to 11.2% (June ‘02) • Mutual Funds - leading asset manager with 26% of the overall market and 15.4% of the market excluding money market funds in 9M ’02 • Insurance - upcoming source of new income, with life premiu

  6. Slide 6: Capital Markets

    Capital Markets Market Share in Brokerage • Equity market - First position with 12.5% of the market, from 10% in 9m 01 16 12.5% 12 • Underwriting - Commanding 25% of the 10% IPO market 8 – 37% of the market for the 10 mths 2002, including amounts allocated in Secondary 4 Offerings 0 9m 01 October 02

  7. Slide 7: 9M 2002 Financial Highlights

    9M 2002 FINANCIAL HIGHLIGHTS

  8. Slide 8: 9M 2002 - Key Points (IAS)

    9M 2002 - Key Points (IAS) Strong Basic income (NII+Fees) growth of 15% to € 706m Operating cost stable at 2Q levels, running at 5.8% y.o.y (incl.Telesis) Group Net Profit at €157m, down 9% y.o.y., up 4%, excl. 2001 one-off gains 8

  9. Slide 9: 9M 2002 Financial Review

    9M 2002 FINANCIAL REVIEW

  10. Slide 10: Steady shift to retail lending

    Steady shift to retail lending Loan mix (% of total) 9M 2001 2001 9M 2002 % y.o.y. growth 100% Wholesale: 56 % Wholesale: 59 % 90% 24% 23% 23% 80% +20% 70% 60% 36% 33% 36% 50% 40% 7.5% +32% Retail: 44 % 7% 7% Retail: 41 % 30% 16.5% 16% 15% +37% 20% 10% 18% 18% 20% +34% 0% Corporate SMEs SBLs Mortgag

  11. Slide 11: Loan Book and Spreads

    Loan Book and Spreads Evolution of Loans and Interest Spreads In € m 6 5,5 12.476 12000 5 11.919 4,5 11.359 10.953 4 10000 10.266 3,5 9.852 3 2,5 2 8000 1,5 1 0,5 6000 0 1H 2001 9M 2001 2001 1Q 2002 1H 2002 9M 2002 Loans Wholesale Spread Retail Spread 11

  12. Slide 12: Asset quality safeguarded

    Asset quality safeguarded – Total NPLs at 3.7% of total loans (NPL coverage above 80%) – Organic NPLs below 3% (retail avg. 2.7%, wholesale avg. 2.9%) NPL Composition Bad debt provisions 5,0% 4,5% % Avg. Loans* 4,0% 1 3,5% 0,95 1.2% 1.0% 0.8% 0,9 3,0% 0,85 2,5% 0,8 0,76 0,74 2,0% 0,75 0,70 1,5% 2.8%

  13. Slide 13: Deposits & repos increased 8%

    Deposits & repos increased 8% Deposits Breakdown* • Savings and other In € m deposits up 31% 18.000 16,761 15,472 • Repos down 27% 15.000 (27)% 4.404 12.000 6.021 • Shift to innovative deposit products (+ 51%) 9.000 51% 8.133 5.397 6.000 3.000 4.054 4.2% 4.224 0 9Μ 2001 9M 2002 Savings Other Deposit

  14. Slide 14: Customer Funds rising by 7.5%

    Customer Funds rising by 7.5% Customer Funds In € m 25.000 23,131 21,507 11 % 3.261 20.000 2.939 1.701 36 % 2.318 15.000 10.000 16.868 17.552 5.000 4% 0 9M 2001 9M 2002 Liquid Funds Mutual Funds Other investm ent products 14

  15. Slide 15: Robust 19% growth in NII

    Robust 19% growth in NII Net Interest Income %NIM 3.16% 3.12% In € m 600 529 19 % 500 38 444 75 32 400 70 106 Money market mismatch Earnings on capital and bonds 300 94 Margin on deposits Margin on loans 200 310 248 100 0 9M 2001 9M 2002 15

  16. Slide 16: Modest rise in fee income in a difficult environment

    Modest rise in fee income in a difficult environment Fee Income Composition Increase in fees from lending activities In € m offsets contraction of fee income related to 180 172 3% 177 equity brokerage, IPOs and equity asset 160 management 140 83 81 120 100 3Q ‘02 fees from equity 80 33 28 brokerage,

  17. Slide 17: Double digit growth in basic income

    Double digit growth in basic income NII+ Fees +15% In € m 706 700 616 15 % 177 600 172 500 400 529 300 444 200 100 0 9M 2001 9M 2002 Net Interest Income Commissions & Fees 17

  18. Slide 18: Recurrent Income

    Recurrent Income Quarterly Evolution of Basic Income (NII + Fees) In € m 246* 238 239 250 229 215 75 57 59 200 61 64 181 180 150 171 168 152 100 50 0 3Q 2001 4Q 2001 1Q 2002 2Q 2002 3Q 2002 * Telesis first included in Q4 2001 18

  19. Slide 19: Other operating income: marginal contribution in 9M 02

    Other operating income: marginal contribution in 9M 02… Other operating income sources contributed € 3 m vs. 80 m in 9m 2001 In € m 9M 2001 9M 2002 • Declining equity markets affected results on Trading and 85 80 AFS portfolios 22m real 65 estate gain • Lower dividends 45 26 3 • One-off 2001 real es

  20. Slide 20: Lower profit on Trading and A.F.S. portfolios

    Lower profit on Trading and A.F.S. portfolios In € m 9M 2001 9M 2002 60 43.8 • Lower Bond gains 50 40 • Losses on equity positions 30 (9.4) ASE: - down 29% Jan.-Sept.‘02 50 20 - down 18% in Q3 ‘02 10 24 0 -11 -10 -33 -20 -30 -40 Bonds and Bond Derivatives Equities FX and Derivatives 20

  21. Slide 21: Penalising Total Operating income growth

    …penalising Total Operating income growth Total operating income up 2% y.o.y, with basic income offsetting other operating income loss In € m 750 696 709 15% 650 80 177 550 172 450 350 250 529 444 150 50 -50 9M 2001 9M 2002 Net Interest Income Fees and Commissions Other income 21

  22. Slide 22: Underlying cost growth slows to 5.8%

    Underlying cost growth slows to 5.8%… Breakdown of operating expenses including Telesis in 9M 01 figures In € m 434 5.8% 450 410 400 4% 51 49 350 142 300 141 250 0.4% 200 150 220 241 100 9.7% 50 0 9M 2001 9M 2002 Personnel Administrative Depreciation 22

  23. Slide 23: With cost stable at 2Q levels

    …with cost stable at 2Q levels Personnel costs q.o.q. €m Operating expenses q.o.q 90 In € m 160 139 148 148 80 18 19 15 120 70 82 81 79 80 60 130 129 1Q 2002 2Q 2002 3Q 2002 124 40 0 Q1 2002 Q2 2002 Q3 2002 Personnel & Administrative Depreciation 23

  24. Slide 24: Core profit up 16%

    Core profit up 16% Core Profit 9M 2001 - 9M2002 In € m 200 16% 205 177 150 151 100 50 0 9M 2001 9M 2002 Core Profitability: (NII + Fees and Commissions) - (Operating Expenses + Provisions) 24

  25. Slide 25: 9-month net profit up 4% excluding one-off 2001 gain

    9-month net profit up 4% excluding one-off 2001 gain Group Net Profit Evolution 9M 2001 - 9M2002 In € m 173 157 180 22* 173 135 4% 157 151 151 90 45 0 9M 2001 9M 2002 * € 22 m One-off real estate gains 25

  26. Slide 26: 9M 2002 - Financial Highlights (IAS)

    9M 2002 - Financial Highlights (IAS) • Net Interest Income up 19% to €529m • Net Fee Income up 3% to €177m • Core profits up 16% to €205 m • Cost stable at 2Q levels, up 6% y.o.y. • Group Net Profit at €157 m, down 9% • Return on Assets at 0.9% • Return on Equity at 11% • Tier 1 Capital Adequacy at

  27. Slide 27: Investor Relations Contacts

    Investor Relations Contacts EFG Eurobank Ergasias 8, Othonos Str, GR 105 57 Athens Tel.: +30-10-333-7688 Fax:+30-10-333-7150 investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Datastream: G:EFG 27

EFG Eurobank Ergasias — 9M 2002 Earnings Presentation on 6ix