The results of Q1.19 are beginning to reflect NBG’s significant efforts at transformation. The main achievements on the revenue side are the exchange into GGBs of the IRS with the Greek State, the reversal of a traditionally loss making trading result and the rejuvenated corporate banking, gaining a leading market share in new production in this segment. On the cost side, the 2018 VES far exceeded its initial targets, facilitating the departures of 780 FTEs. Furthermore, a new VES was just launched, with a higher target. Efforts on domestic G&As containment are already bearing results. As a result of these actions, PAT from continued operations before a one off restructuring charge reached €131m in Q1, more than double the FY.18 result. Turning to NPEs, they declined by €1.1bn in Q1, driven by Project Symbol and negative formation; another €1bn reduction is expected very soon from a sale process for unsecured consumer loans. Our high provision coverage bodes well for the continuation of a series of sales and other closure actions, in rapid succession. More important than the good results reported in Q1, the conditions are in place for an acceleration in NBG’s performance across the balance sheet and the P&L. First, the new management team is in place and is leading the implementation of the bank’s fully-articulated transformation programme, which is currently in its second quarter of implementation. Second, the macro environment is steadily improving, and the legal environment is becoming friendlier to NPE clean up. NBG will present its strategy to the public, starting with the investor community in London on May 16th. We have a huge opportunity to transform NBG into a highly profitable bank with a clean balance sheet and a paradigm for the sector regarding the quality of service and the modern management of its people, thus becoming the bank of choice in the Greek market. We will take full advantage of it. Athens, May 14, 2019 Paul Mylonas Chief Executive Officer, NBG |