x Use of Excess Capital to Significantly Strengthen Provisioning Levels
x NPE Coverage Raised to 52%, NPL Coverage to 82%
Combination of increased provisioning in 2017 and IFRS9 First Time ?doption (FTA)
significantly increases NPE / NPL cash coverage and facilitates balance sheet derisking and
cost of risk de-escalation going forward
? Preliminary IFRS9 FTA impact estimate at ?1.6bn
? Group transitional CET-1 ratio at approximately 15.5% as of 31 December 2017 for
divestments under way
? The Group will implement the transitional arrangements for regulatory capital purposes,
which result in 5% impact of the estimated IFRS9 FTA for 2018, corresponding to c.25bps
impact on CET-1 ratio
? FY.17 loan provision expense estimated at ?2.0bn (?1.2bn in Q4.17) versus ?1.0bn in 2016
? 31.12.17 NPE cash coverage rises to 47% and NPL cash coverage to 75%. Pro-forma for IFRS9
FTA, the ratios stand at 52% and 82% respectively
? Net result from continuing operations attributable to shareholders estimated at break-even
level in FY.17, with the elevated cost of risk during Q4.17 absorbed by DTA recognition. At
parent level, FY.17 net result expected to be marginally positive
Bank NPE stock down to ?31.3bn at the end of Dec.17 vs. target of ?31.5bn, -?2.5bn yoy
? Bank NPL stock down to ?19.8bn at the end of Dec.17 vs. target of ?20.1bn, -?3.4bn yoy
? Piraeus Bank is progressing in all its actions to execute its NPEs operational targets via
restructuring, collections, liquidations and sales. For the latter, the Bank has 2 projects under
way: (a) ?1.6bn secured commercial portfolio (?2.0bn including off-balance sheet claims)
and (b) ?0.4bn unsecured consumer portfolio (?2.3bn including off-balance sheet claims);
both transactions are expected to result in increase of CET-1 ratio by approximately 20bps
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