Results of the Group of Hellenic Bank for the three months ended 31st March 2015 An announcement dated 26th May 2015 is attached.

0003/00011889/en 1st Quarter Financial Report HELLENIC BANK PUBLIC COMPANY LTD Results of the Group of Hellenic Bank for the three months ended 31st March An announcement dated 26th May is attached. HB Attachments: 1. Results of the Group of Hellenic Bank for the three months ended 31st March 2. Condensed Consolidated Financial Statements of the Group of Hellenic Bank 3. Commentary 4. Press Release 5. Publication in the newspaper Regulated Publication Date: 26/05/

HELLENIC BANK GROUP Condensed Consolidated Financial Statements for the three-month period ended

HELLENIC BANK GROUP Condensed Consolidated Financial Statements for the three-month period ended Contents Page Condensed Consolidated Income Statement 3 Condensed Consolidated Statement of Comprehensive Income 4 Condensed Consolidated Statement of Financial Position 5 Condensed Consolidated Statement of Changes in Equity 6-7 Condensed Consolidated Statement of Cash Flows 8 Notes to the Condensed Consolidated Financial Statements 9-36 2

HELLENIC BANK GROUP Condensed Consolidated Income Statement for the three-month period ended Continuing Operations Note Three-month period ended Turnover 85.272 99.523 Net interest income 45.333 54.028 Net income from fees, commissions, net gains on disposal and revaluation of foreign currencies and financial instruments and other income 18.251 23.513 Total net income 63.584 77.541 Total expenses 4 (41.404) (32.190) Profit from ordinary operations before impairment losses and provisions to cover credit risk 22.180 45.351 Impairment losses and provisions to cover credit risk 8 (13.077) (70.853) Profit/(loss) before taxation 9.103 (25.502) Taxation 5 (1.632) (182) Profi/(loss) for the period from continuing operations 7.471 (25.684) Discontinued Operations Profit/(loss) from discontinued operations after taxation 6 4.826 (267) Profit/(loss) for the period 12.297 (25.951) Profit/(loss) attributable to: Shareholders of the parent company from continuing operations 7.124 (26.138) Shareholders of the parent company from discontinued operations 4.826 (267) 11.950 (26.405) Non-controlling interest 347 454 Profit/(loss) for the period 12.297 (25.951) Basic gain/(loss) per share (cent) 7 7,2 (63,0) Basic gain/(loss) per share (cent) from continuing operations 7 4,3 (62,4) 3

HELLENIC BANK GROUP Condensed Consolidated Statement of Comprehensive Income for the three-month period ended Note Three-month period ended Profit/(loss) for the period 12.297 (25.951) Other comprehensive (expenses)/income Other comprehensive (expenses)/income not to be reclassified in the income statement in subsequent periods Taxation relating to components of other comprehensive income (18) 1 (18) 1 Other comprehensive income to be reclassified in the income statement in subsequent periods Surplus on revaluation of available for sale equity and debt securities 3.716 1.288 Amortisation of revaluation of reclassified debt securities available for sale 10 (332) (241) 3.384 1.047 Other comprehensive income for the period net of taxation 3.366 1.048 Total comprehensive income/(expenses) for the period net of taxation 15.663 (24.903) Total comprehensive income/(expenses) for the period net of taxation attributable to: Shareholders of the parent company from continuing operations 10.488 (25.136) Shareholders of the parent company from discontinued operations 4.826 (267) Non-controlling interest 349 500 15.663 (24.903) 4

HELLENIC BANK GROUP Condensed Consolidated Statement of Financial Position at Assets Cash and balances with Central Banks Placements with other banks 31 December Note 2.277.589 2.175.599 1.181.769 1.122.058 Loans and advances to customers 8 3.230.050 3.221.055 Debt securities 9 886.714 779.726 Equity securities 12.082 9.319 Property, plant and equipment 11 97.269 97.715 Intangible assets 11 20.165 19.683 Tax receivable 54 40 Deferred tax 51.115 52.471 Assets of subsidiary company held for sale -- 4.546 Other assets 70.948 69.351 Total assets 7.827.755 7.551.563 Liabilities Deposits by banks 60.862 70.760 Amounts due to Central Banks 12 236.102 236.014 Customer deposits and other customer accounts 6.609.453 6.345.948 Tax payable 5.452 5.260 Deferred tax liability 1.363 1.345 Liabilities belonging to subsidiary held for sale -- 1.044 Other liabilities 121.888 115.399 7.035.120 6.775.770 Loan capital 13 181.448 181.448 Equity Share capital 14 Reserves Equity attributable to shareholders of the parent company 93.884 93.010 514.659 496.977 608.543 589.987 Non-controlling interest 2.644 4.358 Total equity 611.187 594.345 Total liabilities and equity 7.827.755 7.551.563 Contingent liabilities and commitments 696.661 730.941 I. A. Georgiadou Chairwoman of Board of Directors B. Pijls Chief Executive Officer Dr. A. G. Charitou Member of Board of Directors A. Rouvas Group Chief Financial Officer 5

HELLENIC BANK GROUP Condensed Consolidated Statement of Changes in Equity for the three-month period ended Share capital Reduction of share capital reserve Attributable to owners of the parent company Revaluation reserves (Note 15) Total Noncontrolling interest Share premium reserve Revenue reserve Translation reserve Own shares reserve Balance 1 January 93.010 260.269 499.057 (297.345) 39 36.561 (1.604) 589.987 4.358 594.345 Total comprehensive income for the period net of taxation Profit for the period -- -- -- 11.950 -- -- -- 11.950 347 12.297 -- Other comprehensive income -- -- -- -- 3.364 -- 3.364 2 3.366 Transfer of excess depreciation on revaluation surplus -- -- -- 73 -- (73) -- -- -- -- Transactions with the shareholders recognised in equity Dividends paid -- -- -- -- -- -- -- -- (2.063) (2.063) Issue of shares from exercise of Rights (see Note 14) 874 -- 2.404 -- -- -- -- 3.278 -- 3.278 Total Expenses from issue of shares -- -- (36) -- -- -- -- (36) -- (36) 93.884 260.269 501.425 (285.322) 39 39.852 (1.604) 608.543 2.644 611.187 6

HELLENIC BANK GROUP Condensed Consolidated Statement of Changes in Equity for the three-month period ended Attributable to owners of the parent company Total Noncontrolling interest Share Capital Share Capital Reduction Reserve Share premium reserve Revenue reserve Translation reserve Revaluation reserve Own shares reserve Balance 1 January 26.888 260.269 245.073 (179.719) 39 41.938 -- 394.488 4.333 398.821 Total comprehensive (expenses)/income for the period net of taxation (Loss)/profit for the period -- -- -- (26.405) -- -- -- (26.405) 454 (25.951) Other comprehensive income -- -- -- -- -- 1.002 -- 1.002 46 1.048 Transfer from property revaluation reserve on disposal of property -- -- -- 201 -- (201) -- -- -- Transfer of additional depreciation from revaluation of property -- -- -- 78 -- (78) -- -- -- Transactions with shareholders recognized in equity Shares held by Subsidiary company of the Group -- -- -- -- -- -- (1.104) (1.104) -- (1.104) Issue of shares from conversion of CCS 1 8.587 -- 77.286 -- -- -- -- 85.873 -- 85.873 35.475 260.269 322.359 (205.845) 39 42.661 (1.104) 453.854 4.833 458.687 Total -- -- 7

HELLENIC BANK GROUP Condensed Consolidated Statement of Cash Flows for the three-month period ended Cash flow from operating activities Note Three-month period ended 31 March Profit/(loss) for the period 12.297 (25.951) Adjustments to profit for the period 7.202 70.115 Operating profit before working capital changes 19.499 44.164 Working capital changes 219.522 (63.670) Cash flow from/(used in) operations 239.021 (19.506) Tax paid (100) (1.250) Net cash flow from/(used in) operating activities 238.921 (20.756) Cash flow from investing activities Disposal of discontinued operations, net of cash disposed of 6 4.022 -- Income from investments in debt and equity securities 5.078 5.230 Net (additions)/disposals/maturity of investment in debt and equity securities (107.427) 94.526 Additions less proceeds from disposal of property, plant and equipment and intangible assets (1.198) (632) Net cash flow (used in)/from investing activities (99.525) 99.124 Cash flow from financing activities Dividends paid (2.063) -- Proceeds from the issue of share capital 3.278 -- Expenses from issue of shares (36) -- Interest paid on loan capital (232) (258) Net cash flow from/(used in) financing activities 947 (258) Net increase in cash and cash equivalents 140.343 78.110 Cash and cash equivalents at the beginning of the period 3.127.423 1.815.741 Cash and cash equivalents at the end of the period 3.267.766 1.893.851 8

Notes to the condensed consolidated financial statements The condensed consolidated financial statements for the three-month period ended have not been audited by the external auditors of the Group. 1. General information The condensed consolidated three-month financial statements comprise of the financial statements of Hellenic Bank Public Company Limited and its subsidiary companies, which together are referred to as the Group. Hellenic Bank Public Company Limited (the Bank ) was incorporated in Cyprus and is a public company in accordance with the provisions of the Companies Law Cap. 113, the Cyprus Stock Exchange Laws and Regulations and the Income Tax Laws. The Company s registered office is located at 200, Corner of Limassol and Athalassa Avenues, 2025 Strovolos, P.O. Box 24747, 1394 Nicosia. The principal activity of the Group during the period, continued to be the provision of a wide range of banking and financial services, which include financial, investment and insurance services, as well as custodian and factoring services. 2. Significant accounting policies 2.1 Basis of preparation The condensed consolidated three-month financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as adopted by the European Union and should be read in conjunction with the audited consolidated financial statements for the year ended 31 December. The condensed consolidated financial statements for the period ended are presented in Euro ( ), which is the main functional currency of the Bank that most faithfully represents the economic effects of the underlying transactions and activities of the Group entities. 2.2 Comparatives The comparative amounts included in the condensed consolidated three-month financial statements are been restated, where deemed necessary, to conform to the changes in the presentation format of the current year. 2.3 Adoption of new and revised International Financial Reporting Standards (IFRSs) and interpretations The accounting policies followed in respect of items considered material in relation to the financial statements are consistent with the accounting policies followed in the annual report and financial statements for the year ended 31 December, except for the adoption of new and revised standards, interpretations and amendments to existing standards with effect from the 1 st of January. The adoption of new and revised IFRSs, interpretations and amendments to existing standards did not have a material effect on the condensed consolidated three-month financial statements of the Group. 9

Notes to the condensed consolidated financial statements 2. Significant accounting policies (continued) 2.4 Standards and interpretations not yet effective On 24 July, the International Accounting Standards Board (IASB) published the final version of IFRS 9 Financial Instruments which will replace the requirements of IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 abolishes the four categories of classification of financial instruments and financial assets are classified under one of the three measurement categories: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The new standard is effective for periods beginning on or after 1 January 2018 with early adoption permitted, if the Group decides so, subject to its adoption by the competent EU bodies. IFRS 9 changes significantly the way provisions for impairment are calculated, since it involves losses in relation to events that have occurred, as well as part of losses that are expected to occur in the future ( expected credit loss ). Particular criteria are established to determine for which loans expected credit losses that may occur in the next 12 months will be recognised and for which loans expected credit losses that may occur by the final payment of these loans will be recognised. The Group is currently evaluating the impact of the standard on its financial statements. 3. Segmental Analysis For management purposes, during and for the period ended, the Group was organized into three operating segments based on a combination of geographical areas and services, as follows: Cyprus banking and financial services segment - principally provided banking and financial services, including financial and investment services, as well as custodian and factoring services. Insurance services segment - principally provided life and general insurance services in Cyprus. Russia segment - principally provided banking services through the Bank s subsidiary company in Russia until the date of disposal (see Note 6). The table below presents income, expenses, impairment losses and provisions to cover credit risk, profit/(loss) before taxation and liability information regarding the Group's operating segments. 10

Notes to the condensed consolidated financial statements 3. Segmental reporting (continued) Banking & Financial services Three-month period ended Insurance Services Three-month period ended Russia (discontinued operations) Three-month period ended Inter-segment transactions/balances Three-month period ended Total Three-month period ended 000 000 000 000 000 000 000 000 000 000 Turnover 88.589 96.533 5.329 6.022 -- 731 (8.646) (3.130) 85.272 100.156 Net interest income 45.232 54.003 136 199 (35) 224 -- -- 45.333 54.426 Net income from fees, commissions, net gains on disposal and revaluation of foreign currencies and financial instruments and other income 22.278 21.093 3.975 4.520 -- 92 (8.002) (2.100) 18.251 23.605 Total net income 67.510 75.096 4.111 4.719 (35) 316 (8.002) (2.100) 63.584 78.031 Total expenses (39.467) (30.501) (1.959) (1.706) (60) (805) 22 18 (41.464) (32.994) Profit /(loss) from ordinary operations before impairment losses and provisions to cover credit risk 28.043 44.595 2.152 3.013 (95) (489) (7.980) (2.082) 22.120 45.037 Impairment losses and provisions to cover credit risk (13.077) (70.626) -- (227) -- -- -- -- (13.077) (70.853) Profit/(loss) before taxation 14.966 (26.031) 2.152 2.786 (95) (489) (7.980) (2.082) 9.043 (25.816) Banking & Financial Russia Inter-segment Total services Insurance Services transactions/balances 31 December 31 December 31 December 31 December 31 December 000 000 000 000 000 000 000 000 000 000 Total assets 7.778.184 7.504.254 83.329 86.832 -- 4.546 (33.758) (44.069) 7.827.755 7.551.563 11

Notes to the condensed consolidated financial statements 4. Total expenses During the Board of Directors of the Bank proceeded with the appointment of international advisory firms to provide advisory services on matters in accordance with its competency. Total expenses fot the period ended,include an amount of 5,0 million ( : nil). Also an amount of 4,1 million ( : 8 thousand),relating to provisions for pending litigation or cases subject to arbitration proceedings is been included in total expenses. 5. Taxation Corporation tax 271 175 Taxes withheld at source 6 6 Deferred tax 1.355 1 1.632 182 According to the Income Tax Law 118(I)/2002-2013 as implemented from the 1 st of January 2013, the Bank s profit and that of its subsidiaries in Cyprus, is subject to corporation tax at the rate of 12,5%. Taxable profits are not subject to defence fund contribution. In accordance with article 13 of the Income Tax Law 118(I)/02, any tax losses of the Group companies in Cyprus which are not offset against taxable profits of other Group companies in Cyprus, are carried forward and offset against future taxable profits. Based on an amendment to the Income Tax Law issued on the 21 st December 2012, tax losses for the years from 2006 onwards can be carried forward and set off only against taxable profits for the next five years. Profits earned from subsidiaries and permanent establishment abroad are subject to taxation at the rates applicable in the country in which the operations are carried out. For the calculation of the tax for the year, the tax benefits expected to result in the Group are taken into account, pursuant to the provisions of Articles 9, 10, 13 and 36(3) of the Income Tax Law 118(I)/2002-2013. Companies that do not distribute 70% of their profits after tax, as these profits are defined by the Special Contribution for the Defence of the Republic Law, during the two years following the end of the assessment to which the profits refer, will be deemed to have contributed this amount as dividend. Special contribution for defence at 20% for the years 2012 and 2013 and at 17% for and after will be payable on such deemed dividends to the extent that the shareholders (individuals and companies), at the end of the period of two years from the end of the fiscal year to which the profits refer, are Cyprus tax residents. The amount of this deemed dividend distribution is reduced by any actual dividend already distributed for the year to which the profits refer. The special contribution for defence is paid by the Company on behalf of the shareholders. The recognition of deferred tax asset arising from tax losses is based on the forecasts of the Bank s Management for profitability. These forecasts are based on the available evidence, including the historical data, improved macroeconomic forecasts/estimates, the reduction in deposit rates, the stabilisation of non-performing loans and of the development work and are estimated at 12,5% tax rate. Therefore, it is probable that the Bank may realise future taxable gains against which the deferred tax assets may be used. 12

Notes to the condensed consolidated financial statements 5. Taxation (continued) The tax losses relate to the same jurisdiction with the deferred tax asset. Deferred tax assets have not been recognised in relation to the following data, as it not probable that future taxable profit will be available against which the Group may utilize the benefits in relation to the fact that they can be transferred and set off to the taxable profits only of the following five years, based on an amendment of the Income Tax Law published on 21 December 2012. Tax losses ending 2016 21.761 6. Profit/(loss) from discontinued operations after taxation According to the provisions of the International Financial Reporting Standard 5, Non-Current assets held for sale and discontinued operations, the results for the period ended refer to the comparable Group results for the period ended which have been adjusted to reflect the reclassification from continuing operations to discontinued operations of the Bank s subsidiaries Limited Liability Company Commercial Bank Hellenic Bank and Borenham Holding Limited that were disposed. On the 6 th of February, the Bank proceeded with the disposal of its subsidiary Borenham Holdings Limited. Borenham Holdings Limited owned 100% of the share capital of the Russian company Limited Liability Company Format Invest, owner of the building facilities of the former Bank s subsidiary in Russia Limited Liability Company Commercial Bank Hellenic Bank. On 5 June, the Bank disposed 100% of the share capital of the Group s wholly owned subsidiary bank in Russia, Limited Liability Company Commercial Bank Hellenic Bank. The sale was at arm s length basis with Russian Investors as counterparties, after obtaining the necessary approvals from the Central Bank of Cyprus. 13

Notes to the condensed consolidated financial statements 6. Profit/(loss) from discontinued operations after taxation (continued) The effect of the discontinued operations on the Group s results is presented below and is analysed by company at the points (i) and (ii) (Russia segment) as follows: Three-month period ended Note 000 000 Discontinued operations Turnover -- 633 Net interest income -- 398 Net income from fees, commissions, net gains on disposal and revaluation of foreign currencies and financial instruments and other income -- 92 Total net income -- 490 Total expenses (60) (804) Loss before taxation (60) (314) Taxation -- 47 Loss after taxation (60) (267) Profit on disposal of subsidiary company 4.886 -- Profit/(loss) for the period 4.826 (267) Basic profit/(loss) per share (cent) 7 2,9 (0,6) (i) Russia Segment -Limited Liability Company Commercial Bank Hellenic Bank Discontinued operations Three-month period ended 000 000 Turnover -- 633 Net interest income -- 540 Net income from fees, commissions, net gains on disposal and revaluation of foreign currencies and financial instruments and other income -- 117 Total net income -- 657 Total expenses -- (654) Profit before taxation -- 3 Taxation -- 47 Profit after taxation for the period -- 50 14

Notes to the condensed consolidated financial statements 6. Profit/(loss) from discontinued operations after taxation (continued) (ii) Russia Segment - Borenham Holdings Limited Three-month period ended 000 000 Discontinued operations Turnover -- -- Net interest income -- (142) Net income from fees, commissions, net gains on disposal and revaluation of foreign currencies and financial instruments and other income -- (25) Total net income -- (167) Total expenses (60) (150) (60) (317) Profit on disposal of subsidiary company 4.886 -- Profit/(loss) for the period 4.826 (317) The profit arose from the sale of the subsidiary s assets and liabilities, under the signed agreement, which constitutes the difference between the net payable amount and the carrying value of net assets and is analysed as follows: Assets Cash and balances with Central Banks 30 Property, plant and equipment 3.828 Other assets 53 Total Assets 3.911 Liabilities Intercompany loan undertaken by new company shareholders 3.514 Other liabilities 1.231 Total Liabilities 4.745 Net Liabilities 834 Disposal consideration 4.052 Profit on disposal of subsidiary company 4.886 15

Notes to the condensed consolidated financial statements 6. Profit/(loss) from discontinued operations after taxation (continued) The effect of the discontinued operations on the Condensed Consolidated Statement of Cash Flows was as follows: Three-month period ended Cash flows from discontinued operations Net cash from in investing activities 4.022 -- Net cash used in operating activities (864) -- Net cash flows for the period 3.158 -- 7. Basic gain/(loss) per share Three-month period ended Basic gain/(loss) per share Profit/(loss) attributable to owners of the parent ( thousand) 11.950 (26.405) Average number of shares in issue during the period (thousand) 164.529 41.881 Basic gain/(loss) per share (cent) 7,2 (63,0) Three-month period ended Basic gain/(loss) per share from continuing operations Profit/(loss) attributable to owners of the parent ( thousand) from continuing operations 7.124 (26.138) Average number of shares in issue during the period (thousand) 164.529 41.881 Basic gain/(loss) per share (cent) from continuing operations 4,3 (62,4) Three-month period ended Basic profit/(loss) per share from discontinued operations Profit/(loss) attributable to owners of the parent ( thousand) from discontinued operations 4.826 (267) Average number of shares in issue during the period (thousand) 164.529 41.881 Basic gain/(loss) per share (cent) from discontinued operations 2,9 (0,6) For the calculation of basic loss for the period ended, the average number of shares in issue has been adjusted in accordance with the IAS to take into account the rights issue (see Note 19) as well as the reverse split of the issued share capital (see Note 14). 16

Notes to the condensed consolidated financial statements 8. Loans and advances to customers 31 December Loans and advances to customers 4.473.814 4.405.082 Provisions for impairment of loans and advances (1.243.764) (1.184.027) The Group s net loans and advances to customers are all in Cyprus. Accumulated impairment losses on the value of loans and advances: Individual allowance for impairment 31 December 1 January Provision reserve 889.573 598.996 Temporary income suspension account 244.001 164.833 1.133.574 763.829 Net write-offs of loan impairment losses (2.375) (5.242) Net write-offs of suspended income losses (434) (1.059) Suspended income for the period/year 29.143 80.227 Charge for the period/year 15.942 296.970 Transfer to other assets/other liabilities -- (4.621) Exchange difference 19.016 3.470 /31 December Provision reserve Temporary suspension income account 3.230.050 3.221.055 61.292 369.745 922.156 272.710 889.573 244.001 Collective allowance for impairment 1.194.866 1.133.574 1 January 50.453 66.388 Transfer to other assets/other liabilities -- (899) Charge for the period/year (1.555) (15.036) 48.898 50.453 Total impairment losses 1.243.767 1.184.027 Impairment losses and provisions to cover credit risk in the income statement: Impairment losses on the value of loans and advances 14.387 70.853 Provisions to cover credit risk for contractual commitments and guarantees (1.310) -- 13.077 70.853 17

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) Impaired loans and advances Represent the loans and advances for which the Group determines that there is evidence for impairment as a result of one or more loss events occurring after initial recognition and which have an impact on the estimated future cash flows These loans and advances are classified at Grade 3 (High Risk) based on the Group s credit risk assessment system. Loans with renegotiated terms due to the deterioration of the financial position of the customer are usually considered impaired, if the Group determines that, according to the loan contractual terms, nonrepayments of the total principal and contractual interest due is possible. Non-impaired loans and advances The loans and advances which were not found to be impaired, are presented in risk categories based on the credit risk assessment system of the Group. The risk categories are as follows: Grade 1 (Low Risk): An immediate ability to repay the credit facility is assumed. Grade 2 (Medium Risk): The probability of indirect recovery of the credit facility is assumed. Grade 3 (High Risk): The debtor presents a higher risk compared to Grade 1 and 2 on the existence of direct and indirect recovery of the credit facility. Past due but not impaired loans Represent non impaired loans and advances for which the contractual interest or principal repayments are past due and the Group determines that there is no objective evidence of impairment by taking into account, amongst other factors, the value of available collateral. Loans with renegotiated terms Loans with renegotiated terms represent clients facilities that have been restructured. Forbearance measures are any actions taken by the Bank, which involve the modification of the terms and/or conditions of a credit facility and aim to address existing or foreseeable difficulties of the borrower to meet the current repayment schedule. Such actions usually include the extension of the maturity of the loan and changing the timing of the interest payments. Loans with forbearance measures have arisen as a result of adverse changes in the financial condition of a number of customers, resulting in the inability to repay the facilities according to the original terms of the agreement. As a result, the Bank considers amending the terms of the agreement to offer customers more favorable terms in order to facilitate the repayment of their debts and therefore minimise the Bank s final loss. A loan with forbearance measures is considered restructured when one or more of the following signs of weakness in repaying the debt appear: (a) Substantial delay over 60 days, which existed at the time of the restructuring. (b) Material deterioration of the financial results of the customer (reduction of income/profit/turnover/increase of expenses, etc.). (c)existence of events that adversely affect the financial condition of the customer such as bankruptcy of a debtor of the customer, destruction of plant or goods of the customer by fire or other cause, dismissal from work etc. (d) Repetitive material delays of 30 days and over in the servicing of the loan, that negatively impact on the customer s conduct of account. (e) Substantial deterioration of the credit rating of the customer. 18

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) (f) Existence of other overdue debts to the Bank. Prerequisite for taking forbearance measures is the existence of customer repayment ability i.e. the customer is viable. The Bank s Forbearance Policy includes the terms and conditions on which the Bank determines whether or not a renegotiated repayment schedule shall be granted. The forbearance measures to be taken and their duration thereof are determined on the basis of specific customer information, based on the prevailing economic conditions and in accordance with relevant legislation or regulatory Directives. The monitoring of forborne loans is performed by both, Business Units and the Credit Risk Management Department. Every effort is taken for the proper assessment of the new repayment schedule on the basis of the forbearance measures, in order to avoid a new default. Collateral On the basis of the Group s policy, the amount of credit facilities granted should be based on the repayment capacity of the relevant counterparties. Furthermore, policies are applied for the hedging and mitigation of credit risk through the holding of collateral. These policies define the types of collateral held and the methods for estimating its fair value. The main collateral held by the Group includes mortgage interests over property, pledging of cash, government and bank guarantees, charges over business assets as well as personal and corporate guarantees. The financial effects of collaterals are calculated in accordance with the Group s Loan Policy, taking into account, among others, the forfeit value of collaterals and are limited to the fair value of loans covered. The financial effects of collateral for loans and advances classified as individually impaired at 31 st March amounted to 1.351.993 thousand (31 December : 1.340.768 thousand), while for loans and advances past due but not impaired amounted to 283.762 thousand at 31 st March (31 December : 282.657 thousand). 19

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) Based on the above categories, loans and advances to customers of the Group, are presented as follows: Loans and advances to customers 000 31 December 000 Carrying amount 3.230.050 3.221.055 Impaired: Grade 3 (high risk) 2.487.838 2.368.793 Individual allowance for impairment (1.194.866) (1.133.574) Carrying amount 1.292.972 1.235.219 Of which loans with renegotiated terms 533.032 543.352 Past due but not impaired: Grade 1 (low risk) 164.744 134.951 Grade 2 (medium risk) 164.698 189.182 Grade 3 (high risk) 22.530 30.734 Carrying amount 351.972 354.867 Past due comprises: 0+ up to30 days 77.762 103.286 30+-60 days 163.971 84.875 60+-90 days 31.843 66.712 90 days+ 78.396 99.994 Carrying amount 351.972 354.867 Of which loans with renegotiated terms 88.838 77.917 Neither past due nor impaired: Grade 1 (low risk) 1.125.006 1.210.810 Grade 2 (medium risk) 481.170 442.972 Grade 3 (high risk) 27.828 27.640 Carrying amount 1.634.004 1.681.422 Of which loans with renegotiated terms 457.513 479.576 Balances after individual allowance for impairment 3.278.948 3.271.508 Collective allowance for impairment (48.898) (50.453) Total carrying amount 3.230.050 3.221.055 20

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) The movement of the net carrying amount of the Group s impaired loans and advances to customers is as follow: 31 December 000 000 1 January 1.235.219 827.342 Transfer to non- impaired loans and advances during the period/year (29.452) (76.206) Net movement of impaired loans and advances 20.419 (97.877) Loans and advances classified as impaired loans and advances during the period/year /31 December 1.226.186 653.259 66.786 581.960 1.292.972 1.235.219 Group s loans and advances with renegotiated terms after the deduction of individual allowance for impairment are analysed below: 31 December 000 000 Trade 57.978 83.361 Construction and Real Estate 478.971 482.698 Manufacturing 31.735 35.828 Tourism 66.866 48.351 Other sectors 308.725 306.271 Retail 135.108 144.336 Non-Performing Loans 1.079.383 1.100.845 According to the Central Bank of Cyprus (CBC) Directive on Loan Impairment and Provisioning Practices (February, amendment February ), Table A is published below and includes non-performing exposures within the statement of financial position, which at amounted to 2.660 million according to the technical standards of the European Banking Authority (EBA) () (December : 2.557 million) (December : 2.494 million according to the Directive of the CBC to Credit Institutions on the Definitions of Non-performing and Restructured Credit facilities, July 2013). According to the EBA definition, the following are considered as non-performing exposures (NPEs): Material (based on determined materiality thresholds) exposures that are over 90 days past due, the debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number of days past due, exposures in respect of which a default is considered to have occurred in accordance with Article 178 of Regulation (EU) No 575/2013. exposures of debtors against whom legal action has been taken by the Bank or exposures of bankrupt debtors, exposures that are found impaired as per the applicable accounting framework, 21

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) forborne exposures reclassified from NPE status that are re-forborne while under probation (the probation period for forborne exposures begins once the contract is considered as performing and lasts for two years minimum), forborne exposures reclassified from NPE status that become over 30 days past due while under probation. According to the Directive of the Central Bank of Cyprus (CBC) to the credit institutions for the Definition of Non-Performing Loans and Restructured Credit Facilities, which applied as of 1 st of July 2013, loans and advances to customers are considered non-performing when: they present past due balances or are in excess for a period of more than ninety days, they have been restructured and at the time of restructuring were classified as non-performing or presented past due balances for a period of more than 60 days (with the exception of loans and advances which on 15 th March 2013 were performing, were restructured between 18 th March 2013 and 30 th September 2013 and the restructuring did not provide for a lump sum payment of 20% or higher of the loan or for a grace period over 12 months for interest payment and over 24 months for principal payment), they have been restructured two or more times in an 18 month period (with the exception of loans and advances fully secured with cash). At the financial effects of collaterals on non-performing loans amounted at 1.479 million (December : 1.486 million) (December : 1.451 million according to the Directive of the CBC to Credit Institutions on the Definitions of Non-performing and Restructured Credit facilities, July 2013). 22

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) Analysis of loan portfolio according to the counterparty sector as at «Table Α» of which nonperforming exposures** Total loan portfolio of which exposures with forbearance measures of which on nonperforming exposures Cumulative Impairment losses of which nonperforming exposures of which exposures with forbearance measures of which on nonperforming exposures 000 000 000 000 000 000 000 000 Loans and advances* 4.473.814 2.660.083 1.401.504 822.949 1.243.764 1.194.865 332.624 296.442 General Governments 2.432 -- -- -- 58 -- -- -- Other financial corporations 95.249 42.791 55.731 19.968 15.780 15.004 6.894 6.337 Non-financial corporations 2.919.671 1.898.436 1.094.580 672.986 838.766 808.221 284.677 253.746 of which: Small and Medium-sized Enterprises 2.663.982 1.772.268 1.040.136 668.049 760.367 739.068 268.370 253.396 of which: Commercial real estate 541.240 280.095 155.149 47.681 96.259 90.985 36.885 17.948 By sector 1. Construction 839.987 676.526 250.994 2. Wholesale and retail trade 695.133 410.917 226.185 3. Real estate activities 324.418 202.715 108.978 4. Accommodation and food service activities 296.047 175.830 78.661 5. Manufacturing 230.066 114.582 45.011 6. Other sectors 534.020 317.866 128.937 Households 1.456.462 718.856 251.193 129.995 389.160 371.640 41.053 36.359 of which: Residential mortgage loans 651.736 278.680 92.924 48.922 113.507 107.876 15.449 13.441 of which: Credit for consumption 176.758 97.669 13.247 9.155 73.000 68.998 2.485 2.112 * Non including loans and advances to central banks and credit institutions. ** As per EBA definition. 23

Notes to the condensed consolidated financial statements 8. Loans and advances to customers (continued) Analysis of loan portfolio according to the counterparty sector as at 31 December «Table Α» of which nonperforming exposures** Total loan portfolio of which exposures with forbearance measures of which on nonperforming exposures Cumulative Impairment losses of which nonperforming exposures of which exposures with forbearance measures of which on nonperforming exposures 000 000 000 000 000 000 000 000 Loans and advances* 4.405.082 2.494.076 1.417.180 892.314 1.184.027 1.133.574 328.066 316.334 General Governments 2.339 -- -- -- 49 -- -- -- Other financial corporations 94.368 35.958 57.453 19.386 15.132 14.324 6.714 6.133 Non-financial corporations 2.870.083 1.775.116 1.104.238 738.139 810.202 779.403 281.955 275.123 of which: Small and Medium-sized Enterprises 2.633.884 1.695.501 1.049.766 718.281 738.718 712.221 267.613 261.325 of which: Commercial real estate 539.337 254.509 183.231 101.598 90.067 90.067 34.948 34.948 By sector 1. Construction 835.018 667.541 244.235 2. Wholesale and retail trade 684.424 381.701 213.895 3. Real estate activities 316.750 183.677 104.743 4. Accommodation and food service activities 287.219 169.084 76.262 5. Manufacturing 230.564 105.238 44.446 6. Other sectors 516.108 267.875 126.621 Households 1.438.292 683.002 255.489 134.789 358.644 339.847 39.397 35.078 of which: Residential mortgage loans 628.972 260.835 93.165 50.122 95.707 95.707 12.464 12.464 of which: Credit for consumption 179.389 95.341 14.630 9.811 70.257 65.989 2.153 1.694 * Non including loans and advances to central banks and credit institutions. ** As per CBC definition. 24

Notes to the condensed consolidated financial statements 9. Investments in Debt Securities 31 December Securities held for trading 1.875 1.882 Securities held to maturity 62.884 56.330 Securities classified as loans and receivables 317.026 323.963 Securities available for sale 505.140 397.762 886.925 779.937 Provisions for impairment (211) (211) 886.714 779.726 Reportable segment: 31 December Governments 559.746 546.366 Banks 78.521 215.396 Others 248.447 17.964 886.714 779.726 The Group closely monitors developments in the international markets so that any measures needed to reduce credit risk are promptly taken. The monitoring of exposure in countries of high risk is centralized through systems that fully and on an ongoing basis cover all material exposures to these countries such as interbank placements, debt securities, other investments, etc. Also, maximum acceptable levels are specified according to the rankings of the countries and taking into account their credit ratings, political, economic and other factors. For the classification of a country as High Risk country, the credit ratings of the countries, the bond implied ratings which incorporate information about credit spreads of government bonds as well as other available financial data of the countries, are primarily considered. Some of the debt securities listed in the table below, based on the three level hierarchy depending on the significance of the inflows used to determine fair value, are classified in Level 1. The analysis of concentration of credit risk in countries of the Eurozone, the European Union and other countries with high credit risk at the reporting date is shown below: 25

Notes to the condensed consolidated financial statements 9. Investments in Debt Securities (continued) The table below shows the Group's exposure to investments in debt securities in countries of the Eurozone and the European Union with high credit risk, at the reporting date: Nominal Value Book Value Market value 000 000 000 Cyprus: Government Bonds 316.792 332.535 336.027 Bank bonds 256 261 261 317.048 332.796 336.288 Ireland: Bank bonds 10.000 9.774 9.774 Italy: Bank bonds 4.000 3.968 3.968 On 31 st March 2054 the Group did not hold any debt securities with issuers from Greece,Spain, Hungary, Portugal, Ukraine, Slovenia and Egypt. 10. Reclassification of debt securities On the 1 st of January 2009, the Group proceeded with a review of its intension for the holding of debt securities and consequently of its policy for classifying them under the various categories. As a result of this review, a number of debt securities, which were included in the held for trading and available for sale categories, were reclassified to the held to maturity and loans and receivables categories. For the years 2010 to, as well as the three-month period ending, there has been no other reclassification of debt securities in other categories. Reclassification of investments held for trading In accordance with the provisions of the amended IAS 39 and considering the rare circumstances arising as a result of the international financial crisis and its continuing effects on the global economy, the Group identified the investments in debt securities that it did not intend to trade in on the 1 st of January 2009. These investments were reclassified from the held for trading to the held to maturity category. On 31 st March, all Securities held for trading reclassified as held to maturity, had expired. Reclassification of available for sale investments In accordance with the provisions of the amended IAS 39, the Group has reclassified certain available for sale debt securities to loans and receivables, in view of the fact that there was no active market for these debt securities and the Group did not have the intention to sell these securities in the foreseeable future. The carrying amount and fair value of the reclassified debt securities is presented below: 1 January 2009 Carrying amount Carrying and fair value amount Fair value 000 000 000 Available for sale debt securities reclassified as loans and receivables 227.704 217.444 221.846 Had the Group not reclassified the available for sale debt securities to loans and receivables on the 1 st of January 2009, the Group s equity would have included losses from change in fair value of these debt 26

Notes to the condensed consolidated financial statements 10. Reclassification of debt securities (continued) securities of 5.858 thousand that would have been included in the revaluation reserve for available for sale investments. In addition, on the 1 st of January 2009, the Group reclassified certain available for sale debt securities, that it intends to hold to maturity, to the held to maturity category. The carrying amount of these debt securities transferred on the 1 st of January 2009 amounted to 1.018.653 thousand. On the carrying value of these remaining bonds amounted to 7.215 thousand (31 December : 6.525 thousand). As a result of the above decision, for the period ended, an amount of 332 thousand (31 March : 241 thousand), being amortisation of revaluation of reclassified debt securities available for sale, was transferred from the investment revaluation reserve to the income statement. 11. Property, plant and equipment and intangible assets Property, plant and equipment Intangible assets Net book value 1 January 97.715 19.683 Additions less disposals 524 678 Depreciation/amortisation (970) (196) Net book value 97.269 20.165 12. Deposits by Central Banks 31 December Between one and five years 236.102 236.014 On 5 June, in pursuing its price stability mandate, the Governing Council of the European Central Bank (ECB) decided to introduce measures to enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy. One particular measure announced by the ECB in relation to achieving this objective, was the decision of ECB to conduct a series of targeted longer-term refinancing operations (TLTROs) over a period of two years. In implementing this plan, the Governing Council aims to support bank lending to the non-financial private sector, meaning households and non-financial corporations, to the Eurozone member states. This measure does not propose to deal with lending to households for the purposes of house purchases. Under the scheme, banks were entitled to an initial borrowing allowance equal to 7% of a specific part of their loans in two parts, in September and December. After this, additional amounts could be borrowed in further TLTROs, depending on the evolvement of the banks eligible lending activities in excess of bank-specific benchmarks. The additional borrowing allowance is limited to three times the difference between the net lending from 30 April and the benchmark at the time it is claimed. According to the requirements of the ECB, the Banks that borrow under the TLTROs and fail to achieve their benchmarks as at 30 April 2016 will be required to pay back their borrowings in full in September 2016, while on the contrary, all TLROs will mature in September 2018. According to ECB the interest rate for the remaining six targeted longer-term refinancing operations (TLTROs) will be equal to the interest rate of the Euro system s main refinancing operations prevailing at the time of each TLTRO transaction separately. The annual interest rate for the amount that has been granted to the Bank is 0,15% for the entire duration of the program and is payable upon the expiry of the program and the capital repayment. The Bank participates in the program for the amount of 236 million and a number of eligible debt securities have been used as collateral. 27

Notes to the condensed consolidated financial statements 13. Loan capital Tier 1 Capital 31 December Convertible Capital Securities 1-(CCS 1) 1.577 1.577 Convertible Capital Securities 2-(CCS 2) 128.070 128.070 Tier 2 Capital 129.647 129.647 Non Convertible Bonds 2016 41.801 41.801 Non Convertible Bonds 2018 10.000 10.000 51.801 51.801 181.448 181.448 Following the approval of the relevant Special Resolution by the Extraordinary General Meeting the issued share capital of the Hellenic Bank Public Company Ltd, has been consolidated and based on the provisions of the Prospectus dated 30 September 2013 part ΙV/Β/ΙΙΙ paragraph C1(i) and part ΙV/C/ΙΙΙ paragraph C1(i), the following readjustments took place which are effective as of 27 February : Minimum Price of Mandatory Conversion: For CCS1 the price was readjusted from 0,08 to 4,00 For CCS2 the price was readjusted from 0,04 to 2,00 Minimum Price of Voluntary Conversion: For CCS1 the price was readjusted from 0,13 to 6,50 For CCS2 the price was readjusted from 0,13 to 6,50 14. Share capital 000 Number of shares (thousand) 31 December 000 Number of shares (thousand) Authorised 51.600 million shares of 0,01 each -- -- 516.000 51.600.000 1.032 million shares 0,50 each 516.000 1.032.000 -- -- Issued Fully paid shares No. of shares (thousand) 31 December No. of shares (thousand) 1 January 93.010 9.300.974 26.888 2.688.753 Issue of shares from exercise of Rights 874 87.422 53.644 5.364.375 Issue of shares from conversion of Non Convertible Capital Securities -- -- 12.478 1.247.846 Reverse split -- (9.200.628) -- -- Total issued share capital 93.884 187.768 93.010 9.300.974 28

Notes to the condensed consolidated financial statements 14. Share capital (continued) On 28 February, under the provisions of the Prospectus dated 30 September 2013, within the implementation framework of the issue terms of CCS 1 and CCS 2, and as a result of the formation of the Common Equity Tier 1 ratio of the Group and the Bank being below the minimum required supervisory ratio of 9%, CCS 1 of a total value of 85.873.871 were mandatorily and irrevocably converted, without any obligation to obtain the consent of the CCS 1 holders, to shares so that the lower of the two, Common Equity Tier 1 Ratio of the Bank and the Group is increased to 9%. On 29 August and on 26 October and as a result of the Common Equity Tier 1 Ratio of the Group and the Bank being below the minimum required supervisory ratio of 8%, as set by the Central Bank s of Cyprus circular dated 29 May, CCS 1 of total value of 15.106.520 and 23.804.161 respectively, were mandatorily and irrevocably converted to shares so that, the lower of the two, Common Equity Tier 1 Ratio of the Bank and the Group is increased to 8%. The mandatory conversion was applied pro rata to the outstanding balance of CCS 1 for each investor on the conversion date and the mandatory Conversion Price of CCS 1 to shares was set at 0,10. All CCS 1 that have been converted into shares were automatically cancelled and any right or obligation derived from the Prospectus ceased to be valid. A total of 1.247.845.520 ordinary shares of the Bank resulted from the conversion. A total of 5.364.374.709 shares resulted during from the exercise of Rights according to the provisions of the Prospectus dated 14 November under the restructuring and strengthening of the capital base plan of the Bank. In addition on the 28 th of January 87.421.980 shares were issued from the exercise of unallocated Rights (see Note 19). All shares resulted from the mandatory conversion and from the exercise of Rights have been listed and are traded on the Cyprus Stock Exchange. At the Extraordinary General Meeting of the shareholders of the Bank which was held on 27 February, amongst others, it was discussed and approved among others the consolidation and division (reverse split) of the share capital with a ratio of 50:1, the proposal for the issue of shares to the Chief Executive Officer of the Bank as part of his variable remuneration package and a proposal authorising the Board of Directors to issue and allot up to 18.776.000 ordinary shares (post the effect of consolidation and the reverse split) in order to take advantage of any capital raising opportunities that may arise within a period of 12 months. The issue price of such shares shall not be less than 1,875. It was also decided that the fractions of ordinary shares, arising on reverse split would be aggregated and sold in the market. The net proceeds from the sale, which amounted to 19.433, were distributed to Cyprus Red Cross. On, 187.767.918 fully paid shares were in issue, with a nominal value of 0,50 each (December : 9.300.973.920 shares with a nominal value 0,01 each). 29

Notes to the condensed consolidated financial statements 15. Revaluation reserves 31 December Property revaluation reserve 1 January 30.098 35.793 Deficit on revaluation of land and buildings -- (6.152) Deferred taxation on property revaluation (18) 1.421 Transfer to revenue reserve of excess depreciation on revaluation surplus (73) (964) 30.007 30.098 Revaluation reserve of available for sale securities 1 January 6.463 6.145 Revaluation of equity securities 2.680 665 Revaluation of debt securities 1.034 1.083 Amortisation of revaluation of reclassified debt securities (332) (1.430) 9.845 6.463 Total revaluation reserves /31 December 39.852 36.561 16. Contingent liabilities and commitments Capital Commitments At, the Group s commitments for capital expenditure, not recognised in the statement of financial position, amounted to 2.993 thousand (December : 7.871 thousand). Other Commitments At, the Group s commitments for expenditure regarding advisory services, not recognised in the income statement, amounted to 328 thousand (31 December : 2.605 thousand). 17. Related party transactions All transactions with members of the Board of Directors, key management personnel, shareholders with significant influence and their connected persons are at an arm s length basis. Regarding the key management personnel a number of facilities have been granted based on the current terms given to the rest of the Group s personnel. 30

Notes to the condensed consolidated financial statements 17. Related party transactions (continued) Members of the Board of Directors and connected persons Connected persons include the spouse and minor children and companies in which Directors hold, directly or indirectly, at least 20% of the voting rights at a general meeting. 31 December Loans and other advances 10 4 Tangible securities 7 5 Deposits 1.250 1.990 Additionally, at, there were contingent liabilities and commitments in respect of members of the Board of Directors and their connected persons in the form of documentary credits, guarantees and unused limits amounting to 30 thousand which did not exceeded 1% of the Bank s net assets (December : 18 thousand). For the period ended there was no interest income in relation to members of the Board of Directors and their connected persons (March : 9 thousand), while interest expense in respect of members of the Board of Directors and their connected persons amounted to 1 thousand (March : 1 thousand). Emoluments and fees of members of the Board of Directors Emoluments and fees of members of the Board of Directors: Emoluments and benefits in executive capacity 151 81 Employer s contributions for social insurance, etc 8 4 Retirement benefits -- 18 Total emoluments for Executive Directors 159 103 Fees 205 65 Other transactions with members of the Board of Directors and related parties The sales of insurance policies by the Group s subsidiary, Pancyprian Insurance Ltd, to members of the Board and their connected persons as defined above, amounted to 6 thousand. Key management personnel who are not Directors and their connected persons Key management personnel are those persons who have the authority and the responsibility for the planning, management and control of the Banks operations, directly or indirectly. The Group, according to the provisions of IAS 24 considers as key management personnel the General Managers of the Bank who were not Directors, the members of the Asset and Liability Committee (ALCO) as well as management personnel who refer directly to the Chief Executive Officer. 31

Notes to the condensed consolidated financial statements 17. Related party transactions (continued) Connected persons include spouses, minor children and companies in which the key management personnel who were not Directors hold, directly or indirectly, at least 20% of the voting rights at a general meeting. 31 December Loans and other advances 706 592 Tangible securities 173 160 Deposits 5.207 6.269 Emoluments of key management personnel of the Group The emoluments of key management personnel are for the period they were not Directors. Emoluments of key management personnel who were not Directors: Salaries and other short term benefits 545 392 Employer s contributions for social insurance etc 69 47 Retirement benefits 30 32 Amounts paid on termination 795 -- 1.439 471 During the first quarter of, the contracts of employment between the 4 key management personnel and the Bank were terminated by mutual consent. The parties agreed to a consideration for the termination of the contract of employment, in cash and in kind, amounting in total to around 795 thousand. The Bank also paid to the 4 key management personnel the total amount of their accrued rights. In addition, on, there were commitments to key management personnel who were not Directors and their connected persons amounting to 368 thousand (December : 441 thousand). Interest income in relation to key management personnel and their connected persons for the period ended 31 march amounted to 4 thousand (March : 4 thousand), while interest expense in relation to key management personnel and their connected persons amounted to 35 thousand (March : 49 thousand). The sales of insurance policies by the Group s subsidiary, Pancyprian Insurance Ltd, to key management personnel and their connected persons, as defined above, amounted to 16 thousand while the sales of insurance policies by the Group s subsidiary, Hellenic Alico Life Insurance Company amounted to 7 thousand. Shareholders with significant influence and their connected persons Pursuant to the provisions of IAS 24, related parties are considered, among others, the shareholders who have significant influence to the Bank or/and hold directly or indirectly more than twenty percent (20%) of the nominal value of the issued capital of the Bank. 32

Notes to the condensed consolidated financial statements 17. Related party transactions (continued) Connected persons include the entities controlled by shareholders with significant influence as they are defined above. 31 December Loans and other advances 65 -- Tangible securities 103 50 Deposits 28.757 26.680 An amount of 20,3 million of the deposits of shareholder with significant influence is blocked as collateral for the granting of loans to its employees. The loans to the employees of the shareholder with significant influence were granted at an arm s length basis. In addition, on, there were contingent liabilities and commitments in relation to shareholders with significant influence and connected persons in the form of documentary credits, guarantees and unused limits amounting to 33 thousand (December : 50 thousand). For the period ended there was no interest income in relation to shareholders and connected persons (March : 1.152 thousand), while the corresponding interest expense amounted to 27 thousand (March : 9 thousand). Other transactions with shareholders with significant influence and their connected persons During the period ended there were no purchases of goods and services by shareholders with significant influence as defined above (March : 79 thousand). In addition, the sales of insurance policies by the Group's subsidiary, Pancyprian Insurance Ltd, to shareholders with significant influence and connected persons as defined above, amounted to 67 thousand (March : 0,4 million). On, shareholders with significant influence and their connected persons had in their possession Convertible Capital Securities 2 (CCS 2) amounting to 15,7 million. (December : 15,7 million). 18. Economic Environment Economic Environment and Group operations in Cyprus Cyprus has so far completed successfully four evaluations on its macroeconomic adjustment program, which significantly enhanced the confidence in the Cypriot economy, both internally and internationally. The approval of the insolvency framework by the parliament and the implementation of the foreclosures law, the adoption of which was part of the Memorandum of Understanding, initiate the restart of the evaluation of the Cypriot economic adjustment programme. Following the passage of the foreclosure and insolvency legislation, Cyprus government bond yields have fallen, thus paving the way for a return to the international markets with favorable interest rates. Additionally, with the programme and review now expected to get back on track, the Cypriot bonds would become eligible to participate in the European Central Bank s quantitative easing program. Τhe better than expected economic performance was mainly driven from relative improvements on observed indicators of the real economy which demonstrate the good endurance of the Cypriot economy. The better than expected economic performance along with the progress in the restructuring of the banking sector, allowed the Cypriot authorities to fully remove all restrictions on capital movements. 33

Notes to the condensed consolidated financial statements 18. Economic Environment (continued) Based on the latest Eurostat data, the labour market is showing signs of stabilisation. The unemployment rate estimated by the end of the second month of is 16,3%. Despite the restrained unemployment rate, figures for youth unemployment (34,2% in Q4 of -despite the significant reduction during last year) and long-term unemployment (7,8% in Q4 ) are particularly concerning. Τhe harmonised Index for the January - March period was 1,0% lower compared to the same period of. Additionally, for the period January March, arrivals of tourists totaled 189.988 compared to 163.436 in the corresponding period of, recording an increase of 16,2%. The successful return of Cyprus to the international markets and the satisfactory implementation of the Economic Adjustment Programme caused the rating of Cyprus to be upgraded by the international credit rating agencies. The higher credit ratings of the Cypriot economy provide an encouraging sign for its recovery. On 24 October, the Standard and Poor s agency upgraded the credit rating of domestic and foreign long-term debt from B to B+ due to the good fiscal performance achieved. In addition on 27 March, the agency upgraded the outlook for Cyprus to positive and affirmed its long-term and short-term debt. The Fitch agency upgraded the outlook of Cyprus from stable to positive and affirmed its long-term foreign and local currency Issuer Default Ratings at B-. Finally, ratings agency Moody s upgraded the rating of Cypriot bonds from Caa3 to B3 and revised the economy s outlook from positive to stable. The fact that the Cypriot economy has been better than expected so far and the prospects for recovery create a positive climate that helps boost the economy. However, despite the important steps taken towards restoring the economic climate, the degree of uncertainty remains high as increased risks create low visibility conditions on the duration of the recession. The fact that the Cypriot economy is susceptible to external factors may delay the return to positive growth rates. The economy s recovery largely depends on correcting the structural distortions that led the country to this situation and creating a tighter regulatory framework to base the restoration of confidence of Cypriot society and foreign investors. The implementation of the institutional reforms is an important pillar for improving the business environment in order to promote investments. The cost of the reforms may have negative effects on the Cypriot economy s short-term prospects, but it is the only path to sustainable growth for Cyprus. In its report published in April on the progress of the global economy, the International Monetary Fund revised its macroeconomic forecast for the Cypriot economy. Specifically, the new forecast for shows a smaller increase of the Cyprus GDP to 0,2%, instead of the 0,4% figure initially estimated. Also, according to the report, the economy is expected to grow by 1,4% in 2016. However, there are risks associated regarding the growth prospects of the economy. The delayed implementation of the structural reforms under the Memorandum of Understanding, the economic uncertainty in Greece although the risks of contagion to the Cypriot economy are now significantly lower than three years ago and the negative outlook of the Russian economy may jeopardise the Cypriot economy s efforts to end the recession within. Fully restoring the credibility of the financial sector is one of the greatest challenges. A key factor for the system s stability will be to restrict the increasing trend of non-performing loans (NPLs). The most recent data indicate the slowdown recorded in the build-up of NPLs. The approval of the insolvency and foreclosure legislation along with the adoption of new policies for strategic growth and for battling unemployment will be invaluable tools in that direction. With regard to exogenous challenges, the increased geopolitical tensions in the Middle East and Eastern Mediterranean could trigger adverse spillovers to economic confidence, tourism and consequently to the aggregate economic activity. Also, the potential repatriation of Russian businesses will adversely affect the international business services sector of Cyprus. Nevertheless, some upside risks to the outlook are also present. The accommodative monetary policy stance announced recently by the ECB is expected to improve the liquidity of the domestic banking 34

Notes to the condensed consolidated financial statements 18. Economic Environment (continued) system with positive effects on the real economy. In addition, robust growth in the United Kingdom combined with the weakening of the euro against the British pound could benefit tourism. Finally, investment decisions related mainly to the tourism sector may improve the medium-term prospects of the economy. The structural reforms in the public and financial sector must go on unobstructed, and without any rushed decisions, in order to dispose of the Memorandum. The recovery prospects demand a quick and precise implementation of all measures under the reform plan so that the economy of Cyprus will immediately regain its competitiveness. The only way out of the recession and into sustainable growth of the Cyprus economy is the precise and immediate implementation of the Cyprus Economic Adjustment Programme. Consequences of the recent developments Regardless of the prospects for economic recovery, the challenges for the rest of remain in the business and financial and introduce uncertainty and subjectivity in the estimates of Management and Board of the Bank, regarding the expected cash flows in relation to the environment of the impairment of financial and non-financial assets of the Bank. The Management and Board of Directors of the Bank have assessed whether any impairment losses are considered necessary for financial assets carried at amortized cost, by examining the economic situation and prospects of these assets at. Impairment losses on loans and advances to customers are determined using the model loss events required by the International Accounting Standard 39 "Financial Instruments: Recognition and Measurement". This standard requires the recognition of impairment losses on loans and advances to customers arising from past events and does not allow the recognition of impairment losses that could result from future events, regardless of the likelihood of such future events. Based on the assessment made, the Group recognised impairment losses as presented in these Financial Statements. Based on the conditions prevailing in the financial environment, the strategic targets of the Group are the effective management of non-performing loans and the growth of its loan portfolio, while safeguarding its capital adequacy ratios and preserving its sound liquidity. 19. Rights Issue On the 26 th of October, the European Central Bank ( ECB ) and the European Banking Authority ( EBA ) published the results of the Asset Quality Review ( AQR ) and the Stress Tests (together the Comprehensive Assessment ) for 130 banks across the Eurozone, including Hellenic Bank ( the Bank or the Group ). The results of the Baseline Scenario of the stress test confirmed the business model of Hellenic Bank while the "Adverse Scenario" calculated the capital that the Bank should raise to be able to handle unexpected future losses. The capital actions of the Bank reduced the initial gap of 277 million, based on the "Adverse Scenario", to 105 million. As a result of the above, the Board of Directors of the Bank decided at a meeting held on the 31st of October to increase the share capital of the Bank by 221 million via a Rights Issue to the existing shareholders of the Bank after securing the necessary approvals by the competent authorities. According to the provisions of the Prospectus issued on the 14th of November, the Rights were issued and allotted to all existing shareholders at the ratio of one (1) Right to every one (1) Ordinary Share held on the Record Date. Every two (2) Rights exercised were converted to three (3) new Ordinary Shares of the Bank of nominal value 0,01 with an Exercise Price of 0,0375 for every New Share. The Holders of Subscription Rights who exercised all of their Subscription Rights in time could, concurrently with the exercise of their Subscription Rights, exercise their Presubscription Right to acquire any New Unsubscribed Shares, i.e. shares that correspond to the unexercised Subscription Rights, at a price equal 35

Notes to the condensed consolidated financial statements 19. Rights Issue (continued) to the Exercise Price, i.e. 0,0375 per New Share, provided that the exercise of such Holder s Subscription Rights and Presubscription Right did not result in such investor holding equal or in excess of 30% of the issued share capital of the Bank after giving effect to the issue of shares pursuant to the Subscription Rights and Presubscription Right. New Shares issued pursuant to a Presubscription Right were allocated on a pro rata basis, to those holders that exercise them, up to 100% of the number of New Shares corresponding to the Subscription Rights exercised by such Holder. If the Presubscription Right is in excess of the aforementioned limit of 100%, then satisfying the excess percentage over 100% will be at the discretion of the Board. The Bank had the right, at any time within 30 working days from the Last Date of Exercise of Subscription Rights and the exercise of the Presubscription Right to issue all or part of the New Shares that correspond to the unexercised Subscription Rights that have not been covered during the exercise of the Presubscription Right. The Board of Directors of the Bank could allot, at its discretion, such New Shares, in Cyprus and abroad, through a procedure it would determine, at a price of at least equal to the Exercise Price, i.e., 0,0375 per New Share, provided that the allotment of such New Shares does not result in such investor holding equal or in excess of 30% of the issued share capital of the Bank upon completion of the Issue. On 12 December, the Bank announced the successful completion of the first phase of its share capital increase, raising 201 million, which more than cover the capital need of 105 million resulting from Adverse Scenario of the Comprehensive Assessment of the European Central Bank and the European Banking Authority, based on the Asset Quality Review and the Stress Tests, and further enhances its capital base. On 28 January, the Bank announced that it has successfully concluded the share capital increase that commenced in November, raising 204 million and covering by 92% of the target set in an adverse and challenging economic and investing environment. Specifically, as mentioned above, 201 million raised in phase 1 of the capital increase (through the Subscription and Presubscription phase), and 3 million raised through the shares allotment that correspond to the unexercised Rights, not allotted through the Presubscription phase. As a result of the above, the issued and fully paid share capital of the Bank becomes 9.388.395.900 Ordinary Shares of nominal value 0,01 each. All issued shares are listed on the Cyprus Stock Exchange. 20. Capital Adequacy According to the European Parliament s and Council s Directive 2013/36/EU (CRD IV) and the Regulation No. 575/2013 (CRR) as of the 26 th of June 2013 and set in effect as of 1 st January and according to the relevant circulars of the Central Bank of Cyprus, under Pillar 1, the Capital Adequacy Ratio of the Group as at was 17,9% (Bank: 17,9%), the Tier 1 Ratio was 16,2% (Bank: 16,2%) and the Common Equity Tier 1 Ratio was 13,3% (Bank: 13,3%). According to the same Regulation and the Regulation No./62 of the European Parliament and Council dated 10 October, the Leverage Ratio was 8,0% (Bank: 8,0%) as at. As at, the Group s risk weighted assets amounted to 4.091 million. (31 December : 4.027 million). 21. Events after the reporting period There were no other material post balance sheet events, which will significantly affect the financial results of the Group and the Bank on. 22. Approval of financial statements The condensed consolidated three-month financial statements were approved by the Board of Directors on 26 May. 36

HELLENIC BANK GROUP GROUP RESULTS For the three month period ended COMMENTARY 26 May

TABLE OF CONTENTS 1. Summary of results 2. Income Statement Analysis 3. Statement of Financial Position Analysis 4. Capital Adequacy 5. Appendices Page 3-5 6-8 9-14 15 16-17 Page 2 of 15

1. SUMMARY OF RESULTS Income Statement Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 % Total net income 63.584 77.541 (18%) 73.305 (13%) Net interest income 45.333 54.028 (16%) 47.362 (4%) Non-interest income 18.251 23.513 (22%) 25.943 (30%) Total expenses 41.404 32.190 29% 36.783 13% Staff costs 19.678 19.243 2% 18.710 5% Depreciation and amortisation 1.166 1.355 (14%) 1.221 (5%) Administrative and other expenses 20.560 11.592 77% 16.852 22% Profit from ordinary operations before impairment losses and provisions to cover credit risk 22.180 45.351 (51%) 36.522 (39%) Impairment losses and provisions to cover credit risk 13.077 70.853 (82%) 45.341 (71%) Profit/(loss) before taxation 9.103 (25.502) 136% (8.819) (203%) Taxation (1.632) (182) 797% 15.209 (111%) Profit/(loss) for the period from continuing operations 7.471 (25.684) 129% 6.390 17% Profit/(loss) from discontinued operations after taxation 4.826 (267) 1904% 134 3513% Profit/(loss) for the period 12.297 (25.951) 147% 6.524 88% Profit/(loss) attributable to shareholders of the parent company 11.950 (26.405) 145% 6.232 92% Statement of Financial Position 31 December Change 'mln 'mln % Total assets 7.828 7.552 4% Loans and advances to customers 3.230 3.221 0% Gross loans 4.474 4.405 2% Impairment losses (including interest suspended) (1.244) (1.184) 5% Deposits 6.609 6.346 4% Total equity attributable to shareholders of the parent company 609 590 3% Page 3 of 15

1. SUMMARY OF RESULTS (continued) Key Performance Indicators Q1- Q1- Net interest margin 2,46% 3,60% Change Q1 vs Q1 Cost to income ratio 65,1% 41,5% Cost of risk 1,3% 6,4% 31 December Change Coverage ratio 46,8% 46,3% Net Loans/ Deposits 48,9% 50,8% Common Equity Tier 1 ratio (CET 1) 13,3% 13,4% 1.1 Income Statement The Group s profit from ordinary operations before impairment losses and provisions to cover credit risk for the 1 st quarter of, amounted to 22,2 million decreasing by 51% compared to 45,4 million for the 1 st quarter of due to the decrease in net income as well as the increase of expenses. The Group s profit from ordinary operations before impairment losses and provisions to cover credit risk for the 4 th quarter of, amounted to 36,5 million. The Group s profit after impairment losses and provisions to cover credit risk and after taxation for the 1 st quarter of amounted to 7,5 million compared to loss of 25,7 million for the 1 st quarter of. The corresponding amount for the 4 th quarter of amounted to 6,4 million. The net interest income of the Group for the 1 st quarter of, amounted to 45,3 million compared to 54,0 million for the 1 st quarter of, decreasing by 16%, mainly due to the decrease in interest income. The net interest income of the Group for the 4 th quarter of, amounted to 47,4 million. The decrease in non-interest income by 22%, compared to the 1 st quarter of, and by 30% compared to the 4 th quarter of, is mainly due to the decrease in net gain on disposal and revaluation of foreign currencies and financial instruments. The total expenses increased by 29% compared to the corresponding amount for the 1 st quarter of, mainly due to the increase of administrative and other expenses. The total expenses increased by 13% compared to the 4 th quarter of. Impairment losses and provisions to cover credit risk in the income statement for the 1 st quarter of amounted to 13,1 million and decreased by 57,8 million from the corresponding amount of the 1 st quarter of. Impairment losses and provisions to cover credit risk in the income statement for the 4 th quarter of amounted to 45,3 million. On the 6 th of February, the Bank proceeded with the disposal of its subsidiary Borenham Holdings Limited. Borenham Holdings Limited owned 100% of the share capital of the Russian company Limited Liability Company Format Invest, owner of the building facilities of the former bank subsidiary in Russia Limited Liability Company Commercial Bank Hellenic Bank. This transaction resulted to a profit of 4,9 million. Page 4 of 15

1. SUMMARY OF RESULTS (continued) Profit attributable to shareholders of the parent company for the 1 st quarter of amounted to 12,0 million, compared to loss of 26,4 million for the 1 st quarter of. Profit attributable to shareholders of the parent company for the 4 th quarter of amounted to 6,2 million. 1.2 Statement of Financial Position The total assets of the Group amounted to 7,8 billion, showing an increase of 4% compared to December. Customer deposits increased by 4% compared to December, reaching the amount of 6,6 billion (December : 6,3 billion). The total of the Group s cash and placements with banks increased by 5% and amounted to 3,5 billion at (December : 3,3 billion) further strengthening the comfortable liquidity of the Group. The total gross customer loans and advances increased by 2% compared to December, reaching the amount of 4,5 billion. The ratio of non-performing exposures to gross loans and advances was 59,5% based on the technical standards of European Banking Authority (EBA) (). At the same time, the ratio of total impairment losses on loans and advances to total non-performing loans (Coverage ratio) was 46,8%. Accumulated impairment losses on loans and advances amounted to 1.243,8 million as at (December : 1.184,0 million) and represented 27,8% of total gross loans and advances (December : 26,9%). 1.3 Strategic targets and outlook Based on the conditions prevailing in the financial environment, the strategic targets of the Group are the effective management of non-performing loans and the growth of its loan portfolio, while safeguarding its capital adequacy ratios and preserving its sound liquidity. The Group, recapitalised and strengthened, has assumed a more active role in the economic activities of the local market. Using its ample liquidity, Hellenic Bank has begun to finance with new credit facilities sound businesses and households, within the recently implemented framework of the Central Bank lending regulations. Regarding the prospects of the economy, in spite of the challenges which lie ahead, positive signs are beginning to emerge, which show that the economy is on a path to recovery; namely, the complete lift of all restrictions regarding the movement of capital, the government s recent return for financing in international markets and the improvement of economic sentiment indicators. A key criterion for the stabilisation and further recovery of the economy is the successful continuation of the Economic Adjustment Programme, which will improve structurally and sustainably the country's competitiveness. Page 5 of 15

2. INCOME STATEMENT Net interest income Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 % % Interest income 65.683 74.607 (12%) 69.218 (5%) Interest expense (20.350) (20.579) (1%) (21.856) (7%) 45.333 54.028 (16%) 47.362 (4%) The net interest income of the Group for the 1 st quarter of, amounted to 45,3 million compared to 54,0 million for the 1 st quarter of decreasing by 16%. Specifically, the decrease in the net interest income was mainly due to the increase in Non-Performing Loans and the decrease in interest rates. The Group s net interest margin (cumulative) for the 1 st quarter of was 2,46% (31 December : 3,17%).The decrease of net interest rate margin was due to the continuing reductions in interest rates as well as to the increase in deposits with Central Banks. Non-interest income Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 % % Net fee and commission income 13.788 13.300 4% 16.316 (15%) Net (loss)/gain on disposal and revaluation of foreign currencies and financial instruments (982) 4.436 (122%) 5.264 (119%) Other income 5.445 5.777 (6%) 4.363 25% 18.251 23.513 (22%) 25.943 (30%) Total non-interest income for the 1 st quarter of decreased by 22%, reaching the amount of 18,3 million compared to 23,5 million for the 1 st quarter of. Total non-interest income for the 4 th quarter of amounted to 25,9 million. The decrease in non-interest income was mainly due to the net loss on disposal and revaluation of foreign currencies and financial instruments amounting to 1,0 million compared to net gain of 4,4 million for the 1 st quarter of and net gain of 5,3 million for the 4 th quarter of. Page 6 of 15

2. INCOME STATEMENT (continued) Expenses Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 % % Staff costs 19.678 19.243 2% 18.710 5% Depreciation and amortisation 1.166 1.355 (14%) 1.221 (5%) Administrative and other expenses 20.560 11.592 77% 16.852 22% Total expenses 41.404 32.190 29% 36.783 13% The total expenses of the Group for the 1 st quarter of, increased by 29% compared to the corresponding amount for the 1 st quarter of, mainly due to the increase in administrative and other expenses by 77%. The total expenses of Group for the 4 th quarter of amounted to 36,8 million and are lower by 13% compared to the 1 st quarter of. Staff costs Staff costs represent 47,5% of the Group s total expenses (1 st quarter : 59,8%) and increased by 2% ( 0,4 million) compared to the corresponding amount for the 1 st quarter of. During the first quarter of, the contracts of employment between 4 key management personnel and the Bank were terminated by mutual consent. The parties agreed to a consideration for the termination of the contract of employment, in cash and in kind, amounting in total to around 0,8 million. Staff costs for the 4 th quarter of amounted to 18,7 million. On the number of staff employed by the Group was 1.421 (March : 1.403, December : 1423). The number of staff employed by the Group on included 34 employees who were employed by the former subsidiary company of the Bank Limited Liability Company Commercial Bank Hellenic Bank. Administrative and other expenses The administrative and other expenses of the Group for the 1 st quarter of increased by 77% compared to the 4 th quarter of. The increase was mainly due to the cost of advisory services from international advisory firms amounting to 5,0 million and the provisions for pending litigation or cases subject to arbitration proceedings amounting to 4,1 million. The administrative and other expenses of the Group for the 4 th quarter of included impairment of assets of 0,4 million, as well as advisory services cost of 6,4 million. The cost to income ratio for the 1 st quarter of was 65,1% compared to 41,5% for the 1 st quarter of and 50,2% for the 4 th quarter of. The cost to income ratio non inclusive of the above expenses for the 1 st quarter of was 50,8% compared to 40,9% for the 4 th quarter of. The increase in ratio was due to the increase in total expenses and the decrease in total net income. Page 7 of 15

2. INCOME STATEMENT (continued) Impairment losses and provisions to cover credit risk Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 % % Impairment losses on the value of loans and advances 14.387 70.853 (80%) 22.878 (37%) Provisions to cover credit risk for contractual commitments and guarantees (1.310) - 100% 22.463 (106%) 13.077 70.853 (82%) 45.341 (71%) The Group focuses on improving the quality of the loan portfolio. Impairment losses and provisions to cover credit risk in the income statement for the 1 st quarter of amounted to 13,1 million and decreased by 57,8 million from the 1 st quarter of. Impairment losses and provisions to cover credit risk in the income statement for the 4 th quarter of amounted to 45,3 million. The ratio of the annual cost of impairment losses to loans (cost of risk) was 1,3% (December : 2,1%, March : 6,4%). Accumulated impairment losses on the value of loans and advances, which include suspended interest not recognised in the income statement of 272,7 million (December : 244,0 million), amounted to 1.243,8 million as at (December : 1.184,0 million) and represented 27,8% of total gross loans and advances (December : 26,9%). The impairment losses and provisions to cover credit risk in the income statement include a release of 1,3 million resulting from the reduction of provisions to cover credit risk for contractual commitments and guarantees, which on amounted to 21,2 million (December : 22,5 million). Note: According to the provisions of the International Financial Reporting Standard 5, Non-current Assets Held for Sale and Discontinued Operations, the results for the period ended refer to the comparable Group results for the period ended which have been adjusted to reflect the reclassification from continuing operations to discontinued operations of the Bank s subsidiaries Limited Liability Company Commercial Bank Hellenic Bank and Borenham Holding Limited that were disposed. Page 8 of 15

3. STATEMENT OF FINANCIAL POSITION Basic Financial Position highlights 31 December Change Mar-15 - Dec-14 Change Mar-15 - Mar-14 'mln 'mln % 'mln % Total assets 7.828 7.552 4% 6.365 23% Loans and advances to customers 3.230 3.221 0% 3.484 (7%) Deposits 6.609 6.346 4% 5.522 20% The Group s total assets amounted to 7,8 billion as at, increasing by 4% compared to December, mainly due to the increase of the Group s customer deposits by 4%. The annual increase of 23% compared to March is due to the increase of the Group s customer deposits as well as to the increase in share capital through the Rights Issue. The Group s exposure to Greece was approximately 44 million and mainly included loans and advances to customers and assets held for resale. 3.1 Loans and advances to customers (Net Loans) Net loans and advances to customers amounted to 3,2 billion remaining at the same levels compared to December and decreasing by 7% compared to March, mainly due to the increase of accumulated impairment losses. At and 31 December, the composition of the loans and advances to customers was as follows: Composition of loan portfolio 31 December Change Trade 15% 15% _ Construction and Real Estate 25% 25% _ Manufacturing 6% 6% _ Tourism 6% 6% _ Other 19% 18% Retail 29% 30% 100% 100% Page 9 of 15

3. STATEMENT OF FINANCIAL POSITION (continued) 3.1.1 Non-performing Loans Non Performing Loans 31 December Change mln mln % Non- Performing Exposures * (NPEs) as per ΕΒΑ definition 2.660 2.557 4% Non- Performimg Loans * (NPLs) as per CBC definition 2.622 2.494 5% % % NPEs [%] of gross loans (as per EBA definition) 59,5 58,0 Coverage ratio as per EBA definition 46,8 46,3 * including suspended interest not recognised in the income statement According to the technical standards of European Banking Authority (EBA) () the nonperforming exposures within the statement of financial position as at amounted to 2.660 million (December : 2.557 million). According to the EBA definition, non-performing exposures (NPEs) are considered those which satisfy one of the following conditions: - material (based on determined materiality thresholds) exposures that are over 90 days past due, - the debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number of days past due, - exposures in respect of which a default is considered to have occurred in accordance with Article 178 of Regulation (EU) No 575/2013. - exposures of debtors against whom legal action has been taken by the Bank or exposures of bankrupt debtors, - exposures that are found impaired as per the applicable accounting framework, - forborne exposures reclassified from NPE status that are re-forborne while under probation (the probation period for forborne exposures begins once the contract is considered as performing and lasts for two years minimum), - forborne exposures reclassified from NPE status that become over 30 days past due while under probation. According to the Directive of the CBC to credit institutions for the Definition of Non-performing and Restructured Credit facilities, which applied as of 1 st July 2013, loans and advances to customers are considered non-performing when: - they present past due balances or are in excess for a period of more than ninety days, - they have been restructured and at the time of restructuring were classified as nonperforming or presented past due balances for a period of more than 60 days (with the exception of loans and advances which on 15 th March 2013 were performing, were restructured between 18 th March 2013 and 30 th September 2013 and the restructuring did not provide for a lump sum payment of 20% or higher of the loan or for a grace period over 12 months for interest payment and over 24 months for principal payment), - they have been restructured two or more times in an 18 month period (with the exception of loans and advances fully secured with cash). Page 10 of 15

3. STATEMENT OF FINANCIAL POSITION (continued) The ratio of non-performing loans to gross loans and advances was 59,5% (December as per EBA definition: 58,0%). The ratio of non-performing loans to gross loans and advances, excluding suspended interest, was 56,8% (December as per EBA definition: 55,6%). At the same time, the ratio of total impairment losses on loans and advances to total gross nonperforming loans was 46,8% (December as per EBA definition: 46,3%). The ratio of total impairment losses on loans and advances excluding suspended interest to total non-performing loans (excluding suspended interest) was 40,7% (December as per EBA definition: 40,6%). 3.2 Deposits Customer deposits showed an increase of 4% compared to December, reaching the amount of 6,6 billion (December : 6,3 billion) and are consisted of 4,8 billion deposits in Euro (December : 4,6 billion) and 1,8 billion deposits in foreign currencies (December : 1,7 billion). At and 31 December, the composition of the customer deposits portfolio by deposit category was as follows: Composition of customer deposits portfolio 31 December Change Demand deposits 48% 46% Savings deposits 6% 7% Notice deposits 3% 3% _ Time deposits 43% 44% 100% 100% At and 31 December, the composition of the customer deposits portfolio based on the customer s country of origin was as follows: Deposits by depositors' country of origin 31 December Change Cyprus 50% 50% _ Other countries of European Union 13% 13% _ Russia 26% 26% _ Other European countries 6% 6% _ Other countries 5% 5% _ 100% 100% Page 11 of 15

3. STATEMENT OF FINANCIAL POSITION (continued) At and 31 December, the composition of the customer deposits portfolio by currency was as follows: Deposits by currency 31 December Change US Dollars 24% 23% GBP 2% 2% _ Euro 72% 74% Ruble 1% 1% _ Other Currencies 1% 0% 100% 100% At the ratio of gross loans to deposits was 67,7%, while the ratio of net loans to deposits was 48,9%. The ratios at 31 December were 69,4% and 50,8% respectively. 3.3 Cash and balances with Central Banks and placements with other banks The total of the Group s cash and placements with other banks and Central Banks, which included a placement of 2,2 billion with the European Central Bank, amounted to 3,5 billion at (December : 3,3 billion) further strengthening the comfortable liquidity of the Group. 3.4 Investments The Group s total investments amounted to 0,9 billion (December : 0,8 billion), which represented 11,5% of the total assets (December : 10,4%) comprising mainly of Cyprus Government debt securities and supranational organisations. At, the carrying amount of investments in bonds, based on their issuer, is analysed as follows: Investment in Bonds - mln Governments Bonds - mln Other 17 35 28 7 1 1 Cyprus - 333 Supranational 231 USA - 155 Government 560 333 Belgium - 35 GB - 28 Banks 79 155 Israel - 7 Germany - 1 Croatia - 1 Page 12 of 15

3. STATEMENT OF FINANCIAL POSITION (continued) The Cyprus Government bonds held by the Group at amounted to 333 million of which 146 million will mature between 5 and 10 years, 170 million between 1 and 5 years and the remaining 17 million within a period of less than 1 year. At, the analysis of bonds by external credit rating is as follows: Quality of bonds portfolio 31 December Aaa 43% 45% Aa1 7% 4% Aa3 5% 3% A1 2% 1% A2 1% 0% Baa1 to Β3 41% 46% Caa1 & Caa2 0% 1% Caa3 1% 0% 100% 100% Change 4. CAPITAL ADEQUACY According to the Directive No.2013/36/EU (CRD IV) and the Regulation No.575/2013 (CRR) of the European Parliament and Council dated 26 June 2013, which came into effect at 1 January, and according to the relevant circulars of the Central Bank of Cyprus, under Pillar 1, the Capital Adequacy Ratio of the Group as at is 17,9% (Bank: 17,9%), the Tier 1 Ratio is 16,2% (Bank: 16,2%) and the Common Equity Tier 1 Ratio (CET 1) is 13,3% (Bank: 13,3%). According to the same Regulation and the Regulation No./62 of the European Parliament and Council dated 10 October, the Leverage Ratio was 8,0% (Bank: 8,0%) as at. As at, the Group s risk weighted assets amounted to 4.091 million (December : 4.027 million). At the Extraordinary General Meeting of the Bank called on the 27 th of February where, amongst others, the Board of Directors was authorised for a further issue of share capital, in its sole and unfettered discretion, up to 18.776.000 ordinary shares (post the effect of the reverse split) in order to take advantage of capital raising opportunities that may arise within a period of 12 months. The issue price of such shares shall be not less than 1,875. Page 13 of 15

5. APPENDICES A. GROUP INCOME STATEMENT Q1- Q1- Change Q1 vs Q1 Q4- Change Q1 vs Q4 mln mln % mln % Interest income 65,7 74,6 (12%) 69,2 (5%) Interest expense (20,4) (20,6) (1%) (21,9) (7%) Net interest income 45,3 54,0 (16%) 47,4 (4%) Fee and commission income 15,1 14,7 3% 17,6 (14%) Fee and commission expense (1,3) (1,4) (5%) (1,3) 2% Net fee and commission income 13,8 13,3 4% 16,3 (15%) Net (losses)/gains on disposal and revaluation of foreign currencies and financial instruments (1,0) 4,4 (122%) 5,3 (119%) Other income 5,4 5,8 (6%) 4,4 25% Total net income 63,6 77,5 (18%) 73,3 (13%) Staff costs (19,7) (19,2) 2% (18,7) 5% Depreciation and amortisation (1,2) (1,4) (14%) (1,2) (5%) Administrative and other expenses (20,6) (11,6) 77% (16,9) 22% Total expenses (41,4) (32,2) 29% (36,8) 13% Profit from ordinary operations before impairment losses and provisions to cover credit risk 22,2 45,4 (51%) 36,5 (39%) Impairment losses and provisions to cover credit risk (13,1) (70,9) (82%) (45,3) (71%) Profit/(loss) before taxation 9,1 (25,5) (136%) (8,8) 203% Taxation (1,6) (0,2) 797% 15,2 (111%) Profit/(loss) for the period from continuing operations 7,5 (25,7) (129%) 6,4 17% Profit/(loss) from discontinued operations after tax 4,8 (0,3) (1911%) 0,1 3513% Profit/(loss) for the period 12,3 (26,0) (147%) 6,5 88% Page 14 of 15

5. APPENDICES (continued) B. GROUP STATEMENT OF FINANCIAL POSITION 31 December change mln mln % Cash and balances with Central Banks 2.278 2.176 5% Placements with other banks 1.182 1.122 5% Loans and advances to customers 3.230 3.221 0% Debt securities 887 780 14% Equity securities 12 9 30% Property, plant and equipment 97 98 (0%) Intangible assets 20 20 2% Deferred tax asset 51 52 (3%) Other assets 71 74 (4%) Total assets 7.828 7.552 4% Deposits by banks 61 71 (14%) Amounts due to Central Banks 236 236 0% Customer deposits and other customer accounts 6.609 6.346 4% Tax payable 5 5 4% Deferred tax liability 1 1 1% Other liabilities 122 117 4% Loan capital 182 182 0% Share capital 94 93 1% Reserves 515 497 4% Non-controlling interest 3 4 (39%) Total liabilities and equity 7.828 7.552 4% Page 15 of 15

Entered positively Hellenic Bank Group realised profits of 12 million the first quarter of Comfortable liquidity with increasing deposits which reached 6,6 billion Ratio of net loans to deposits at 49% NPEs at 60%, with a coverage ratio of 47% Hellenic Bank can withstand pressures and is ready to take advantage of opportunities for growth Group s capital adequacy ratio at 17,9% Hellenic Bank concluded Q1- with a positive note, realising a profit of 12 million, compared to a loss of 26 million during the first quarter of. During a period where the economic environment remains fragile and the banking sector continues to face challenges, the return to profitability for a second consecutive quarter indicates that the Hellenic Bank Group is on the right track to achieving its goals while at the same time shows signs of stability. In the first quarter of, deposits were further increased, enhancing the Group s comfortable liquidity. The liquidity and capital adequacy indicate the prospects of the Bank s business model for growth and profitability. Income statement The Group s profit from ordinary operations before impairment losses and provisions amounted to 22 million, totalling 12 million after provisions. 1

The sale of Borenham Holdings Limited, the Bank s subsidiary in Russia, resulted in a profit of 5 million. NPEs at 60% of the loan portfolio The ratio of non-performing loans to the total gross loans, calculated in accordance with the new methodology of the European Banking Authority, stands at 60%, of which 47% is covered by provisions for impairment and the remainder by tangible collateral. Recognising that the management of non-performing loans is the biggest challenge of the banking system, the Bank is proceeding with a specific plan for their management which aims to result in fair and viable restructurings. Increase in deposits, enhanced liquidity In spite of the overall uncertainty that was caused by the Eurogroup s decisions in March 2013, over the past two years the Hellenic Bank Group has managed to increase its deposits significantly. The positive deposits trend continued during the first quarter of, resulting in a 4% increase in deposits compared to December ( 6,3 billion) which reached 6,6 billion with a net loans to deposits ratio of 49%. Adequately sheltered with capital Having a strong capital position, Hellenic Bank can withstand the pressures and is ready to take advantage of the opportunities for growth. The Group s Capital Adequacy Ratio at was 17,9%, the Tier 1 Capital Ratio 16,2% and the Common Equity Tier 1 (CET 1) Ratio 13,3%. 2

The Hellenic Bank Group concluded Q1- with a profit of 12 million after provisions, compared to losses of 26 million during the first quarter of. Q1-, impairment losses and provisions to cover credit risk amounted to 13 million. Non-performing exposures, which accounted for 60% of the total gross loans, are closely monitored, aiming fair and viable restructurings. The first quarter of was marked by increasing deposits, comfortable liquidity and strong capital adequacy. During Q1-, Hellenic Bank s deposits increased by 4%, totalling 6,6 billion. The Group s capital adequacy ratio of 17,9% enables it to take advantage of the opportunities for growth. 3