ALPHA BANK: Full Year 2016 Profit after Tax at Euro 42.3 million

Alpha Bank’s CEO, Demetrios P. Mantzounis stated:
“In 2016 we have delivered a profitable performance despite the significant provisions of Euro 1.2 billion for the year. The higher
net interest margin and the improving cost to income ratio supported our operational performance, while we preserved our strong
capital base and enabled further balance sheet restructuring. It is important to note that we reduced Eurosystem funding exposure
by 25% in a year and further diversified our funding sources away from central bank funding. During 2016, we have continued our
deleveraging in SEE and we have now exited from four countries in the region while we have continued to divest from non-core
assets, in line with the restructuring plan, as agreed with the European Commission. As far as asset quality is concerned we have
experienced significantly lower formation of non performing exposures while we have set the target for the reduction of the stock
in our business plan. The implementation of our plan is also dependent on the recovery of the Greek economy and the full and
proper implementation of pending NPL reforms. In this respect we are looking forward to the timely successful completion of the
second review which will significantly contribute to that end”.

– Alpha Bank returns to profitability in 2016, with higher Pre-Provision Income and lower Cost of Risk. Profit after Tax for
FY 2016 at Euro 42.3 million.
– Core Pre-Provision income at Euro 1,190.6 million, up by 6% y-o-y despite balance sheet deleveraging by Euro 4.4
billion, driven by improved core revenue performance and operating efficiencies.
– Net Interest Margin improved by 20bps y-o-y to 2.9%. Cost to income ratio reduced to 48.2% from 50.2% a year ago.
– Capital base further strengthened with Common Equity Tier I ratio (CET 1) up by 30bps q-o-q to 17.1%, supported by
improving valuation of our AFS portfolio and further reduction of Credit Risk. Including the positive impact from the sale
of Serbian operations, Common Equity Tier I ratio (CET 1) stands at 17.3%, up by 50bps y-o-y. Tangible Book Value,
the highest among Greek Banks, at Euro 8.7 billion, implying a Tangible Book Value per Share of Euro 5.66.
– Significant deposit inflows in Q4 2016 of Euro 1.4 billion, partially reversed in the beginning of 2017, affected by
seasonality and the uncertainty from the delays over the completion of the second review.
– Further reduction in Eurosystem funding of Euro 2.5 billion in Q4 2016, to Euro 18.3 billion, driven by deposits inflows,
securities disposal and SME securitisation. In December 2016, our reliance on ELA stood at Euro 13.2 billion, down by
Euro 6.5 billion since December 2015. Eurosystem funding down by 25% y-o-y.
– NPLs down by Euro 0.2 billion quarter-on-quarter at 38.1% at the end of December 2016. Cash coverage of 69% and
Total coverage of 125% support implementation of NPE Business Plan.
– NPE formation in Greece declined by 77% y-o-y in 2016. NPE’s in Greece at Euro 27.7 billion
– Loan Loss Provisions at Euro 303.9 million in Q4 2016, implying Cost of Risk (CoR) at 201bps for Q4 2016. CoR for FY
2016 at 191bps.