NBG Group Interim Financial Statements for the period ended 30 September 2023

November 2023

Independent Auditor's Report 3
Statement of Financial Position 4
Income Statement – 9-month period 5
Statement of Comprehensive Income – 9-month period 6
Income Statement – 3-month period 7
Statement of Comprehensive Income – 3-month period 8
Statement of Changes in Equity - Group 9
Cash Flow Statement10
NOTE 1 General information11
NOTE 2 Summary of significant accounting policies 12
2.1 Basis of preparation 12
2.2 Going concern12
2.3 New and Amended Standards and Interpretations14
2.4 Critical judgments and estimates 15
NOTE 3 Segment reporting 17
NOTE 4 Net trading income / (loss) and results from investment securities and Gains / (losses) arising from the derecognition of financial assets measured at amortised cost 20
NOTE 5 Credit provisions and other impairment charges 20
NOTE 6 Restructuring costs20

NOTE 7 Tax benefit /(expense) 21
NOTE 8 Earnings per share21
NOTE 9 Loans and advances to customers21
NOTE 10 Property and equipment and Other liabilities 25
NOTE 11 Assets and liabilities held for sale and discontinued operations 25
NOTE 12 Due to banks27
NOTE 13 Due to customers27
NOTE 14 Debt securities in issue 27
NOTE 15 Contingent liabilities, pledged assets and commitments 28
NOTE 16 Share capital, share premium and treasury shares 29
NOTE 17 Tax effects relating to other comprehensive income / (expense) for the period 30
NOTE 18 Cash and cash equivalents 30
NOTE 19 Related party transactions 31
NOTE 20 Capital adequacy 32
NOTE 21 Fair value of financial assets and liabilities34
NOTE 22 Acquisitions, disposals and other capital transactions39
NOTE 23 Group companies42

Independent Auditor's Report

Translation from the original text in Greek

Report on Review of Interim Financial Statements

To the Board of Directors of National Bank of Greece S.A.

Introduction

We have reviewed the accompanying consolidated statement of financial position of the Group of National Bank of Greece S.A., as of 30 September 2023 and the related consolidated statements of income, comprehensive income, changes in equity and cash flow statements for the nine-month period then ended, and the selected explanatory notes that comprise the interim condensed financial statements as required by L.3556/2007.

Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with International Financial Reporting Standards as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on these interim consolidated condensed financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as they have been transposed into Greek Law and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34.

Athens, 7 November 2023

PricewaterhouseCoopers S.A. Certified Auditors 260 Kifissias Avenue 152 32 Halandri Soel Reg. No. 113

The Certified Auditor

Andreas Riris SOEL Reg. No. 65601

Statement of Financial Position as at 30 September 2023

	Group
€ million Note	30.09.2023	31.12.2022
ASSETS
Cash and balances with central banks	8,400	14,226
Due from banks	2,330	2,900
Financial assets at fair value through profit or loss	689	395
Derivative financial instruments	1,809	1,962
Loans and advances to customers 9	35,319	35,561
Investment securities	15,023	13,190
Investment property	66	71
Current tax asset	242	208
Deferred tax assets	4,430	4,705
Equity method investments	176	175
Property and equipment 10	1,487	1,565
Software	500	431
Other assets	2,741	2,229
Non-current assets held for sale 11	712	495
Total assets	73,924	78,113

LIABILITIES
Due to banks 12	3,362	9,811
Derivative financial instruments	1,795	1,923
Due to customers 13	56,292	55,192
Debt securities in issue 14	2,292	1,731
Other borrowed funds	82	63
Current income tax liabilities	3	2
Deferred tax liabilities	16	16
Retirement benefit obligations	215	248
Other liabilities 10	2,554	2,627
Liabilities associated with non-current assets held for sale 11	25	25
Total liabilities	66,636	71,638

SHAREHOLDERS' EQUITY
Share capital 16	915	915
Treasury shares 16	(1)	-
Share premium 16	3,542	3,542
Reserves and retained earnings	2,807	1,995
Equity attributable to NBG shareholders	7,263	6,452

Non-controlling interests Total equity	25 7,288	23 6,475

Total equity and liabilities	73,924	78,113
Statement of Financial Position Athens, 6 November 2023

THE CHAIRMAN OF THE BOARD OF THE CHIEF EXECUTIVE OFFICER DIRECTORS	THE CHIEF FINANCIAL OFFICER

Income Statement for the period ended 30 September 2023

			Group
			9-month period ended
€ million		Note	30.09.2023	30.09.2022

Continuing Operations
Interest and similar income			1,997	1,056
Interest expense and similar charges			(357)	(108)
Net interest income			1,640	948
Fee and commission income			329	347
Fee and commission expense			(56)	(88)
Net fee and commission income			273	259

Net trading income / (loss) and results from investment securities		4	8	296
Gains / (losses) arising from the derecognition of financial assets measured at amortised cost		4	49	60
Net other income / (expense)			(7)	(44)
Total income			1,963	1,519

Personnel expenses			(345)	(342)
Administrative and other operating expenses			(166)	(150)
Depreciation and amortisation on investment property, property & equipment and software			(140)	(126)
Credit provisions		5	(220)	(160)
Other impairment charges		5	(15)	(56)
Restructuring costs		6	(3)	(64)
Share of profit / (loss) of equity method investments			1	1
Profit before tax			1,075	622

Tax benefit / (expense)		7	(282)	(170)
Profit for the period from continuing operations			793	452

Discontinued Operations
Profit / (loss) for the period from discontinued operations		11	-	230
Profit for the period			793	682

Attributable to:
Non-controlling interests NBG equity shareholders			2 791	2 680
Earnings per share (Euro) - Basic and diluted from continuing operations		8	€0.86	€0.49
Earnings per share (Euro) - Basic and diluted from continuing and discontinued operations		8	€0.86	€0.74
Income Statement – 9-month period
	Athens, 6 November 2023

THE CHAIRMAN OF THE BOARD OF	THE CHIEF EXECUTIVE OFFICER		THE CHIEF FINANCIAL OFFICER

DIRECTORS

THE CHIEF EXECUTIVE OFFICER THE CHIEF FINANCIAL OFFICER

		Group 9-month period ended

€ million Note	30.09.2023	30.09.2022


Profit for the period	793	682
Other comprehensive income / (expense):
Items that will be reclassified to the Income Statement:
Available-for-sale securities, net of tax	-	(246)
Investments in debt instruments measured at fair value through other comprehensive income
("FVTOCI"), net of tax	15	(203)
Currency translation differences, net of tax	(20)	(1)
Cash flow hedge, net of tax	(1)	18
Total of items that will be reclassified to the Income Statement	(6)	(432)

Items that will not be reclassified to the Income Statement:
Investments in equity instruments measured at FVTOCI, net of tax	9	(14)
Total of items that will not be reclassified to the Income Statement	9	(14)
Other comprehensive income / (expense) for the period, net of tax 17	3	(446)

Total comprehensive income / (expense) for the period	796	236

Attributable to:
Non-controlling interests	2	2
NBG equity shareholders	794	234
Statement of Compr ehe nsive I ncome – 9-month peri od

Athens, 6 November 2023

THE CHAIRMAN OF THE BOARD OF DIRECTORS	THE CHIEF EXECUTIVE OFFICER	THE CHIEF FINANCIAL OFFICER

Income Statement for the period ended 30 September 2023

	Group
	3-month period ended
€ million	30.09.2023	30.09.2022
Continuing Operations
Interest and similar income	782	382
Interest expense and similar charges	(194)	(34)
Net interest income	588	348
Fee and commission income	113	126
Fee and commission expense	(18)	(37)
Net fee and commission income	95	89
Net trading income / (loss) and results from investment securities Gains / (losses) arising from the derecognition of financial assets measured at amortised cost	(18) -	8 6
Net other income / (expense)	25	(2)
Total income	690	449
Personnel expenses	(118)	(114)
General, administrative and other operating expenses	(67)	(53)
Depreciation and amortisation on investment property, property & equipment and software & other intangible assets	(47)	(43)
Credit provisions	(111)	(56)
Οther impairment charges	(3)	(9)
Restructuring costs	(1)	(2)
Profit before tax	343	172

Tax benefit / (expense)	(81)	(33)
Profit for the period from continuing operations	262	139
Discontinued operations
Profit / (loss) for the period from discontinued operations	-	(4)
Profit for the period	262	135

Attributable to:
Non-controlling interests	1	1
NBG equity shareholders	261	134
Earnings per share (Euro) - Basic and diluted from continuing operations	€0.29	€0.15
Earnings per share (Euro) - Basic and diluted from continuing and discontinued operations Income Statement – 3-month period	€0.29	€0.15
Athens, 6 November 2023

THE CHAIRMAN OF THE BOARD OF DIRECTORS

THE CHIEF EXECUTIVE OFFICER THE CHIEF FINANCIAL OFFICER

Statement of Comprehensive Income for the period ended 30 September 2023

	Group
	3-month period ended
€ million	30.09.2023	30.09.2022

Profit for the period	262	135
Other comprehensive income / (expense):
Items that will be reclassified to the Income Statement:
Investments in debt instruments measured at fair value through other comprehensive income ,
net of tax	(34)	(51)
Currency translation differences, net of tax	-	1
Cash flow hedge, net of tax	(2)	-
Total of items that will be reclassified to the Income Statement	(36)	(50)
Items that will not be reclassified to the Income Statement:
Investment in equity instruments at FVTOCI, net of tax	4	(2)
Total of items that will not be reclassified to the Income Statement	4	(2)
Other comprehensive income/(expense) for the period, net of tax	(32)	(52)

Total comprehensive income/(expense) for the period	230	83
Attributable to:
Non-controlling interests	1	1
NBG equity shareholders	229	82
Statement of Compr ehe nsive I ncome – 3-month peri od

Athens, 6 November 2023

THE CHAIRMAN OF THE BOARD OF	THE CHIEF EXECUTIVE OFFICER	THE CHIEF FINANCIAL OFFICER
DIRECTORS

GIKAS A. HARDOUVELIS PAVLOS K. MYLONAS CHRISTOS D. CHRISTODOULOU

The notes on pages 11 to 42 form an integral part of these Interim Financial Statements

	Attributable to equity holders of the parent company
€ million	Share capital		Share premium Treasury shares	Securities at FVTOCI reserve	Currency translation reserve	Net investment hedge reserve	Cash flow hedge reserve	Defined benefit plans	Other reserves & Retained earnings	Total	Non-controlling Interests	Total

		Ordinary shares Ordinary shares
Balance at 31 December 2021 and at 1 January 2022	915	13,866	-	195	69	(111)	(18)	(199)	(8,967)	5,750	22	5,772
Other Comprehensive Income/ (expense) for the period	-	-	-	(459)	(1)	-	18	-	-	(442)	-	(442)
Gains/(losses) from equity instruments at FVTOCI reclassified to retained earnings	-	-	-	(4)	-	-	-	-	4	-	-	-
Profit for the period	-	-	-	-	-	-	-	-	680	680	2	682
Total Comprehensive Income / (expense) for the period (see Note 17)	-	-	-	(463)	(1)	-	18	-	684	238	2	240
Offsetting of losses with share premium and reserves (see Note 16)	-	(10,324)	-	-	-	-	-	-	10,324	-	-	-
Acquisitions, disposals & share capital increases of subsidiaries/associates	-	-	-	-	-	-	-	-	1	1	(1)	-
Balance at 30 September 2022	915	3,542	-	(268)	68	(111)	-	(199)	2,042	5,989	23	6,012
Movements to 31 December 2022	-	-	-	(5)	(124)	110	-	44	438	463	-	463
Balance at 31 December 2022 and at 1 January 2023	915	3,542	-	(273)	(56)	(1)	-	(155)	2,480	6,452	23	6,475
Other Comprehensive Income/ (expense) for the period	-	-	-	31	(20)	-	(1)	-	11	21	-	21
Gains/(losses) from equity instruments at FVTOCI reclassified to retained earnings	-	-	-	(7)	-	-	-	-	7	-	-	-
Profit for the period	-	-	-	-	-	-	-	-	791	791	2	793
Total Comprehensive Income / (expense) for
the period (see Note 17)	-	-	-	24	(20)	-	(1)	-	809	812	2	814
(Purchases)/ disposals of treasury shares	-	-	(1)	-	-	-	-	-	-	(1)	-	(1)
Balance at 30 September 2023 Statement of Changes in Equity -Group	915	3,542	(1)	(249)	(76)	(1)	(1)	(155)	3,289	7,263	25	7,288

Cash Flow Statement for the period ended 30 September 2023

Cash Fl ow Statement

	Group
	9-month period ended
€ million	30.09.2023	30.09.2022
Cash flows from operating activities
Profit before tax	1,075	858
Adjustments for:
Non-cash items included in income statement and other adjustments:	358	326
Depreciation and amortisation on investment property, property & equipment and software	140	126
Amortisation of premiums /discounts of investment securities, debt securities in issue and other borrowed funds	19	49
Credit provisions and other impairment charges	244	112
Provision for employee benefits	8	13
Share of (profit) / loss of equity method investments	(1)	(1)
Result from fair value and cash flow hedges	(7)	15
Dividend income from investment securities	(2)	(3)
Net (gain) / loss on disposal of property & equipment and investment property	(8)	(10)
Net (gain) / loss on disposal of subsidiaries	-	(30)
Net (gain) / loss on disposal of investment securities	(73)	29
Accrued interest from financing activities and results from repurchase of debt securities in issue	37	2
Accrued interest of investment securities	(3)	22
Valuation adjustment on instruments designated at fair value through profit or loss	-	4
Other non-cash operating items	4	(2)
Net (increase) / decrease in operating assets:	274	958
Mandatory reserve deposits with Central Bank	(47)	(3)
Due from banks	783	(513)
Financial assets at fair value through profit or loss	(212)	6
Derivative financial instruments	197	2,395
Loans and advances to customers	(418)	(1,079)
Other assets	(29)	152
Net increase / (decrease) in operating liabilities:	(5,365)	825
Due to banks	(6,448)	(1,674)
Due to customers	1,100	2,182
Derivative financial instruments	(69)	(463)
Retirement benefit obligations	(40)	(33)
Insurance related reserves and liabilities	-	329
Income taxes (paid) / received	(39)	(18)
Other liabilities	131	502
Net cash from / (for) operating activities	(3,658)	2,967
Cash flows from investing activities
Disposals of subsidiaries, net of cash disposed	-	214
Dividends received from investment securities & equity method investments	2	3
Purchase of investment property, property & equipment, software & other and intangible assets	(321)	(118)
Proceeds from disposal of property & equipment and investment property	(1)	22
Purchase of investment securities	(6,596)	(6,612)
Proceeds from redemption and sale of investment securities Net cash (used in) / provided by investing activities	4,502 (2,414)	5,683 (808)

Cash flows from financing activities
Proceeds from debt securities in issue and other borrowed funds	22	3
Repayments of debt securities in issue, other borrowed funds and preferred securities	19	(20)
Principal elements of lease payments	(48)	(46)
Proceeds from disposal of treasury shares Repurchase of treasury shares	8 (9)	13 (13)
Net cash from/ (for) financing activities	(8)	(63)
Effect of foreign exchange rate changes on cash and cash equivalents	(9)	2
Net increase / (decrease) in cash and cash equivalents	(6,089)	2,098
Cash and cash equivalents at beginning of period (see Note 18)	17,725	16,105
Cash and cash equivalents at end of period	11,636	18,203

NOTE 1 General information

National Bank of Greece S.A. (hereinafter "NBG" or the "Bank") was founded in 1841 and its shares have been listed on the Athens Exchange since 1880. The Bank's headquarters are located at 86 Eolou Street, 10559 Athens, Greece (Register number G.E.MH. 237901000), tel. (+30) 210 334 1000, www.nbg.gr. By resolution of the Board of Directors, the Bank can establish branches, agencies and correspondence offices in Greece and abroad. In its 182 years of operation, the Bank has expanded on its commercial banking business by entering into related business areas. The Bank and its subsidiaries (hereinafter the "Group") provide a wide range of financial services including mainly retail, corporate and investment banking, non-performing exposures management, transactional banking, leasing, factoring, brokerage, asset management, real estate management and insurance services. The Group operates mainly in Greece but also through its branch in Cyprus and its subsidiaries in North Macedonia, Romania, Bulgaria, Cyprus, Luxembourg, Netherlands and U.K. Following the respective Bank's decision in 2021, the Group ceased its operation in Egypt, Malta and NBG London Branch; therefore, the NBG Egypt Branch, the NBG London Branch and the subsidiaries NBG Malta Ltd (formerly known as NBG Bank Malta Ltd) and NBG Malta Holdings Ltd are currently under liquidation.

The Board of Directors ("BoD") consists of the following members:

The Non-Executive Chairman of the Board of Directors Gikas Hardouvelis

Executive members Pavlos Mylonas Christina Theofilidi

Independent Non-Executive Members

Avraam Gounaris - Senior Independent Director Anne Clementine Marcelle Marion-Bouchacourt Claude Edgard Louis Ghislain Piret Wietze Reehoorn Matthieu Joseph Kiss Elena Ana Cernat Aikaterini Beritsi Jayaprakasa (JP) Rangaswami Athanasios Zarkalis

Non-Executive Representative of the Hellenic Financial Stability Fund (Greek Law 3864/2010)

Periklis Drougkas

The Board of Directors Μembers are elected by the Bank's General Meeting of Shareholders for a maximum term of three years and may be reelected. The term of the above Members expires at the Annual General Meeting of the Bank's Shareholders in 2024.

These Interim Financial Statements have been approved for issue by the Bank's Board of Directors on 6 November 2023.

NOTE 2 Summary of significant accounting policies

2.1 Basis of preparation

The condensed consolidated Interim Financial Statements as at and for the nine-month period ended 30 September 2023 (the "Interim Financial Statements") have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". These Interim Financial Statements include selected explanatory notes and do not include all the information required for full set of annual financial statements. Therefore, the Interim Financial Statements should be read in conjunction with the consolidated Annual Financial Statements for the Group as at and for the year ended 31 December 2022, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as endorsed by the European Union (the "EU").

The Interim Financial Statements have been prepared under the historical cost basis except for the financial assets measured at fair value through other comprehensive income, financial assets and financial liabilities (including derivative instruments) measured at fair-value-throughprofit-or-loss. The carrying values of recognised assets and liabilities that are hedged items in fair value hedges, and otherwise carried at amortised cost, are adjusted to record changes in fair value attributable to the risk being hedged.

The accounting policies for the preparation of the Interim Financial Statements have been consistently applied with those in the consolidated Annual Financial Statements for the year-ended 31 December 2022, after considering amendments in IFRSs as described in Section 2.3 "New and Amended Standards and Interpretations". Where necessary, comparative figures have been adjusted to conform to changes in the current period's presentation.

The Interim Financial Statements have been prepared on the basis that the Group will continue to operate as a going concern (see Note 2.2 "Going Concern").

The Group's presentation currency is the Euro (€) being the functional currency of the parent company. Except as indicated, financial information presented in Euro has been rounded to the nearest million.

2.2 Going concern

Going concern conclusion

After considering (a) the significant recurring profitability of the Group (b) the significant collateral buffer and Liquidit y Coverage Ratio ("LCR") and Net Stable Funding Ratio ("NSFR") which is well above 100% (c) the current level of European Central Bank ("ECB") funding solely from Targeted Long-term Refinancing Operations ("TLTROs") (d) the Group's Common Equity Tier 1 ("CET1") ratio as at 30 September 2023 which exceeded the Overall Capital Requirements ("OCR"), (e) the increasing support from the Recovery and Resilience Facility ("RRF"), (f) the fiscal measures in force in response to pressures from increased inflation and (g) the Group's insignificant exposure to Russia and Ukraine, the insignificant impact from floodings in Thessaly and the Management's actions with respect to the crisis, the Board of Directors concluded that the Group is a going concern and thus the application of the going concern principle for the preparation of these Interim Financial Statements is appropriate.

Profitability

For the period ended 30 September 2023, the profit from continuing operations amounted to €793 million for the Group, whereas earnings per share from continuing operations amounted to €0.86 for the Group.

Liquidity

As at 30 September 2023, funding from the ECB through TLTROs amounted to €1.9 billion (31 December 2022: €8.1 billion). Additionally, as at 30 September 2023, the Bank's liquidity buffer at cash values amounted to €25.8 billion, with the LCR and NSFR ratios well above 100%.

Capital adequacy

The Group's Common Equity Tier 1 ("CET1") and Total Capital ratios as at 30 September 2023 were 15.8% and 18.3% respectively, exceeding the required CET1 and OCR ratio of 9.77% and 14.58% for 2023, respectively (see Note 20 "Capital Adequacy").

Macroeconomic developments

In 1H.2023, economic activity in Greece slowed – due to less supportive base effects compared to FY.2022 – but remained on an upward trend, with Gross Domestic Product ("GDP") increasing by 2.4% year-over-year ("y-o-y") and exceeding the respective euro area average by 1.6 percentage points ("pps"). In fact, GDP growth – according to 2Q.2023 GDP data released on 6 September 2023 – edged up to 2.7% y-o-y (+1.3% quarter-over-quarter ("q-o-q"), seasonally adjusted ("s.a.")) from 2.0% y-o-y (0.0% q-o-q s.a.) in 1Q.23, exhibiting one of the strongest growth rates among the euro area countries.

The largest component of domestic demand, private consumption, grew by a solid 2.8% y-o-y in 1H.2023, on the back of supportive labour market conditions and declining energy prices, which bolstered purchasing power. Non-wage income of households as well as corporate profits (including profits of unincorporated enterprises) were also buoyant, as reflected in the annual growth rate of the economy-wide gross operating surplus and mixed income (+6.9% y-o-y in 1H.2023).

Reflecting strong confidence levels and attractive returns, Gross Fixed Capital Formation ("GFCF") increased by 8.1% y-o-y in 1H.2023, following a robust annual expansion of 11.6% in FY.2022. The further strengthening of construction activity, led by residential construction (up by 47.5% y-o-y), accounted for most part of the increase. Net exports contributed 0.1 pps to GDP growth in 1H.2023 – compared with a sizeable drag (-2.8 pps) on FY.2022 growth – on the back of robust tourism and resilient, albeit slowing, goods exports which were combined with a softening in import spending.

Residential real estate prices surged by 14.5% y-o-y in 1H.2023, recording a cumulative appreciation of around 54% between 3Q.2017 (lowest point) and 2Q.2023, and edging closer to their all-time high level in 2008.

Monthly indicators of economic activity for 3Q.2023 point to continuing economic growth at a slightly higher annual pace than in 1H.2023, with tourism-related services outperforming the market average, despite the natural disasters. Indeed, despite a small weakening in the economic sentiment indicator in September 2023, to 108, its average level in 3Q.2023 stood at 109.9 (from 108.7 in 2Q.2023), compared with a euro area average of 93.8 in 3Q.2023, with services and retail trade sectors remaining in healthy expansion territory. Tourism is heading for a new record year − as suggested by the surge in international arrivals in the Athens International Airport by 28.3% y-o-y in 9M.2023 and the increase in total tourism revenue by 20.1% y-o-y in 7M.2023 (latest available BoG data), with both figures exceeding their average levels for the respective periods in 2019, by 7.3% and 13.1%, respectively. The manufacturing Purchasing Managers' Index ("PMI") for Greece increased to 53.2 on average in July-August, from 51.9 in 2Q.2023, on the back of resilient demand and production orders and a decline in input costs, but weakened to 50.3 in September due to slowing external demand and a re-emergence of some supply-side tensions as regards agricultural inputs. Employment growth increased by 1.6% y-o-y in July-August, compared with 1.7% y-o-y in 2Q.2023 – mainly due to less supportive base effects – and unemployment rate dropped to a nearly 14-year low of 10.9% in July-August, from 11.3% in 2Q.2023. Consumer Price Index ("CPI") inflation slowed further to 2.3% y-o-y in 3Q.2023 from 2.5% in 2Q.2023, falling to a 2-year low of 1.6% in September 2023.

Fiscal rebalancing remained on track, as indicated by a further increase in General Government's primary surplus, reaching 2.5% in 8M.2023, and a prospective decline in Greece's public debt-to-GDP ratio to 159.3% by end-2023 and to 152.2% by 2024, further declining to 135.2% by 2026, according to the projections of the Draft State Budget 2024 and the Greek Stability Programme 2023, respectively. The sustained fiscal performance – with a targeted primary surplus of 1.1% of GDP for 2023 and 2.1% of GDP for 2024 according to the Draft Budget 2024 – along with the recorded progress in economic reforms and the positive impact of the RRF funding on economic resilience, set the stage for the upgrade of Greece's sovereign credit rating. Most notably, between July and September 2023, Greece has regained – after nearly 13 years – the investment grade status from R&I, Scope and DBRS, while in mid-September 2023 Moody's upgraded the country's rating by two notches, to "Ba1" (just one level below investment grade on the agency's rating scale), on par with S&P and Fitch.

Nonetheless, new sources of macroeconomic and geopolitical risks emerged in the September-October 2023 period. Specifically:

The damages on agricultural production caused by the storm "Daniel", which hit Central Greece in early-September leading to a catastrophic flooding in Thessaly, are expected to have a rather small negative impact on economy-wide GDP growth in 4Q.2023 and result to a temporary acceleration of the already high food price inflation. This uncertainty, along with a pick-up in energy prices, lead to a weakening in consumer and industrial sector confidence. Nonetheless, additional fixed capital investment on reconstruction projects is expected to boost growth in 2024-25, more than compensating for the persistent part of production losses.
Moreover, the outbreak of the Hamas-Israel conflict in October, aside from the immense human suffering, is expected to have an impact on economic conditions which is, however, difficult to be fully assessed at present. If the conflict does not spread to a broader region, involving other countries in the Middle East, the impact on the global economy as well as on Greece will be largely limited to higher energy prices, with natural gas and oil prices having already climbed at higher levels, following the onset of the conflict. However, substantial downside risks could emerge in the event of a broader regional conflict and an activation of terrorist groups in Europe or elsewhere, which could give rise to more sizeable energy price spikes as well as weigh on the Greek-Israeli economic relations, directly or indirectly affecting the related sectors (e.g., tourism sector, goods exports and investment). These risks could be compounded by the ongoing war in Ukraine.
The rapid tightening of monetary policy, reflected in the 450 basis points hike in the policy rates by the European Central Bank in the period from July 2022 to September 2023,started to weigh on bank credit growth. This slowing follows an upsurge in credit expansion, especially in the corporate sector, in the past three years. Total credit to private sector slowed to 2.1% y-o-y in September 2023 (from 6.3% y-o-y in December 2022), mainly due to a deceleration in lending to the corporate sector to 4.9% y-o-y (from 12.3% y-o-y in December 2022). However, private sector's cash buffers remained sizeable, with bank deposits at a 12½-year high of €191.7 billion in total as of September 2023, on the back of a notable rebound in time deposits, since 2022, buoyed by rising interest rates on this deposit category.

On a positive note, under the NBG baseline macroeconomic scenario, the Greek economy seems well-positioned to continue outperforming its euro area peers for the remainder of 2023 and 2024, underpinning the NBG baseline estimates, on the back of: i) solid investment growth prospects, based on a strong pipeline of private and public investment, the increasing impact of the National Recovery & Resilience Plan, and strong Foreign Direct Investment ("FDI") inflows in previous years, ii) the positive momentum of services activities (especially tourism), iii) increasing employment and labor compensation, and iv) the upgrade of Greece's sovereign credit rating to investment grade status and the potential future upgrades by other major rating agencies, which could also bolster economic performance through positive effects on economic sentiment, risk appetite, liquidity conditions, fixed capital formation and FDI.

2.3 New and Amended Standards and Interpretations

New standards effective from 1 January 2023

- IFRS 17 Insurance Contracts and Amendments to IFRS 17 (effective for annual periods beginning on or after 1 January 2023). IFRS 17 was issued in May 2017, including amendments issued in June 2020 and supersedes IFRS 4. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of this standard and its objective is to ensure that an entity provides relevant information that faithfully represents those contracts. The new standard solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Insurance obligations will be accounted for using current values instead of historical cost. The standard has been endorsed by the EU.

Due to the sale of the Bank's insurance subsidiary Ethniki Hellenic General Insurance S.A. ("Ethniki Insurance" or "NIC") on 31 March 2022, there was no material impact from the adoption of IFRS 17.

Amendments to existing standards effective from 1 January 2023

- Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendment to IFRS 4). The amendment, which has been endorsed by the EU, introduces two approaches. The amended standard will: a) give all companies that issue insurance contracts the option to recognise in the Statement of Other Comprehensive Income, rather than in the Income Statement, the volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued (i.e. the difference between the amounts that would be recognized in profit or loss in accordance with IFRS 9 and the amounts recognized in profit or loss in accordance with IAS 39) – "overlay approach" and b) give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9 until 2021 – "deferral approach". The entities that defer the application of IFRS 9 will continue to apply IAS 39.

The Amendment 'Extension of the Temporary Exemption from Applying IFRS 9 (effective for annual periods beginning on or after 1 January 2021) extended the expiry date of the extension described above from 1 January 2021 to 1 January 2023.

On 31 March 2022, the Group sold its insurance subsidiary NIC. NIC applied this amendment using the deferral approach up to the date of sale.

- IAS 1 and IFRS Practice Statement 2 (Amendments): Disclosure of Accounting Policies (effective for annual reporting periods beginning on or after 1 January 2023). The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy. Examples of when an accounting policy is likely to be material are added. To support the amendment, the Board has also developed guidance and examples to explain and demonstrate the application of the 'Four-Step Materiality Process'. The Group is currently assessing the impact of this amendment but considering the fact that the significant accounting policies disclosed in Note 2 "Summary of significant accounting policies" in the Annual Financial Report as at and for the year ended 31 December 2022 include all material accounting policies, the Group expects to disclose fewer accounting policies in the future.

- IAS 8 (Amendment): Definition of Accounting Estimates (effective for annual reporting periods beginning on or after 1 January 2023). The amendment replaces the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in the financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error. There was no impact on the consolidated Interim Financial Statements from the adoption of this amendment.

- IAS 12 (Amendments): Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective for annual reporting periods beginning on or after 1 January 2023). These amendments clarify and narrow the scope of the exemption provided by the IAS 12 "Income Taxes" standard allowing institutions to not recognise any deferred tax during the initial recognition of an asset and a liability. All leases and decommissioning obligations are excluded from the exemption scope for which companies recognise both an asset and a liability and will now have to recognise deferred taxes. From the date of first application of IFRS 16 "Leases", the Group has considered the right of use assets and the lease-related liabilities as a single transaction. Consequently, on the initial recognition date, the amount of deferred tax asset offsets the amount of deferred tax liability. The net temporary differences resulting from later variations in the right of use assets and lease liabilities subsequently result in a deferred tax asset as of 1 January 2023 which is subject to the recoverability criteria of IAS 12 "Income Taxes". There was no impact on the consolidated Interim Financial Statements from the adoption of these amendments.

- IFRS 17 (Amendment): Initial Application of IFRS 17 and IFRS 9 – Comparative Information (effective for annual periods beginning on or after 1 January 2023). The amendment is a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for the users of financial statements. Due to the sale of the Bank's insurance subsidiary NIC in March 2022 there was no material impact on the consolidated Interim Financial Statements from the adoption of this amendment.

- IAS 12 (Amendments): International Tax Reform – Pillar Two Model Rules (effective for annual periods beginning on or after 1 January 2023). The amendments introduce a mandatory temporary exception from accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development's (OECD) international tax reform. The amendments also introduce targeted disclosure requirements. The temporary exception applies immediately and retrospectively in accordance with IAS 8, whereas the targeted disclosure requirements will be applicable for annual reporting periods beginning on or after 1 January 2023.

Notes to the Interim Financial Statements Group

The amendments to existing standards effective from 1 January 2023 have been endorsed by the EU, except for the amendments to IAS 12 Income Taxes (International Tax Reform – Pillar Two Model Rules), which have not yet been endorsed by the EU.

Amendments to existing standards effective after 2023

- IAS 1 (Amendments): Classification of liabilities as current or non-current (effective for annual periods beginning on or after 1 January 2024). The amendments clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period. The amendments also clarify that the classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments are expected to be effective for annual periods beginning on or after 1 January 2024 with early adoption permitted.

- IFRS 16 (Amendment): Lease Liability in a Sale and Leaseback (effective for annual periods beginning on or after 1 January 2024). The amendment clarifies how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted. The requirements are applied retrospectively back to sale and leaseback transactions that were entered into after the date of initial application of IFRS 16.

- IAS 1 (Amendments): Non-current Liabilities with Covenants (effective for annual periods beginning on or after 1 January 2024). The new amendments clarify that if the right to defer settlement is subject to the entity complying with specified conditions (covenants), this amendment will only apply to conditions that exist when compliance is measured on or before the reporting date. Additionally, the amendments aim to improve the information an entity provides when its right to defer settlement of a liability is subject to compliance with covenants within twelve months after the reporting period.

- IAS 7 and IFRS 7 (Amendments) - Disclosures: Supplier Finance Arrangements (effective for annual periods beginning on or after 1 January 2024). The amendments require companies to disclose information about their Supplier Finance Arrangements such as terms and conditions, carrying amount of financial liabilities that are part of such arrangements, ranges of payment due dates and liquidity risk information.

- IAS 21 (Amendments): The effects of Changes in Foreign Exchange Rates - Lack of Exchangeability (effective for annual periods beginning on or after 1 January 2025). The amendments specify when a currency is exchangeable into another currency and when it is not and clarify how an entity determines the exchange rate to apply when a currency is not exchangeable. A currency is not exchangeable into the other currency if an entity can only obtain an insignificant amount of the other currency. When a currency is not exchangeable at the measurement date, an entity estimates the spot exchange rate as the rate that would have applied to an orderly transaction between market participants at the measurement date and that would faithfully reflect the economic conditions prevailing. Additionally, the amendments require disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable.

The amendments to these existing standards have not yet been endorsed by the EU. The Group is examining the impact from the above amendments.

2.4 Critical judgments and estimates

In preparing these Interim Financial Statements for the nine-month period ended on 30 September 2023, the critical judgments and estimates made by Management in applying the Group's accounting policies and the key sources of estimation uncertainty were similar to those applied to the consolidated Annual Financial Statements as at and for the year ended on 31 December 2022, except for:

Forward-looking information

In 1H.2023, economic activity in Greece slowed compared to FY.2022 – due to less supportive base effects – but remained on an upward trend, with Gross Domestic Product ("GDP") increasing by 2.4% year-over-year ("y-o-y") and exceeding the respective euro area average by 1.6 percentage points ("pps"). In fact, GDP growth – according to 2Q.2023 (latest available) GDP data released on 6 September 2023 by the Hellenic Statistical Authority ("ELSTAT") – edged up to 2.7% y-o-y in 2Q.2023 from 2.0% y-o-y in 1Q.2023.

The largest component of domestic demand, private consumption, grew by a solid 2.8% y-o-y in 1H.2023, on the back of supportive labour market conditions and declining energy prices, which bolstered the purchasing power of households. Non-wage income of households as well as corporate profits (including profits of unincorporated enterprises) were also buoyant, as reflected in the annual growth rate of the economywide gross operating surplus and mixed income (+6.9% y-o-y in 1H.2023).

External imbalance declined – net exports (national accounts data, ELSTAT) contributed 0.1 pps to GDP growth in 1H.2023, while the current account deficit (balance of payments data, Bank of Greece, "BoG") narrowed by 38.0% y-o-y, to €6.8 billion or 3.1% of GDP, in 8M.2023 – on the back of robust tourism and resilient, albeit slowing, goods exports which were combined with a softening in import spending.

Residential real estate prices surged by 14.5% y-o-y in 1H.2023, recording a cumulative appreciation of around 54% between 3Q.2017 (lowest point) and 2Q.2023, edging closer to their all-time high level in 2008.

Notes to the Interim Financial Statements Group

suggested by the surge in international arrivals in the Athens International Airport by 28.3% y-o-y in 9M.2023 and the increase in total tourism revenue by 15.3% y-o-y in 8M.2023. The manufacturing Purchasing Managers' Index ("PMI") for Greece increased to 53.2 on average in July-August 2023, from 51.9 in 2Q.2023, on the back of resilient demand and production orders and a decline in input costs, but weakened to 50.3 in September due to slowing external demand and a re-emergence of some supply-side tensions as regards agricultural inputs. Similarly, despite a small weakening in September 2023, the Economic Sentiment Indicator ("ESI") increased to 109.9 on average in 3Q.2023 – compared with a euro area average of 93.8 – from 108.7 in 2Q.2023.

Unemployment rate dropped to a nearly 14-year low of 10.9% in July-August, from 11.3% in 2Q.2023, with employment growth sustaining its momentum (+1.6% y-o-y).

CPI inflation slowed further to 2.3% in 3Q.2023 from 2.5% in 2Q.2023, falling to a 2-year low of 1.6% in September 2023.

Fiscal rebalancing remained on track, with the Greek Draft State Budget for 2024 envisaging a General Government primary surplus of 1.1% of GDP in 2023 and 2.1% of GDP in 2024, combined with a steadily declining public debt-to-GDP ratio to 159.3% by end-2023 and 152.2% by 2024, which is expected to drop further to 135.2% by 2026, according to the projections of the Greek Stability Programme 2023.

The strong macroeconomic and fiscal performance, in conjunction with the steady progress in economic reforms and the positive impact of the Recovery and Resilience Fund ("RRF") on economic growth, and especially on fixed capital investment, contributed to the upgrade of Greece's sovereign credit rating to investment grade. Specifically, between July and October, Greece regained – after nearly 13 years – the investment grade status from R&I, Scope, DBRS and S&P, whereas Moody's upgraded the country's rating by two notches, to "Ba1" (just one level below investment grade on the agency's rating scale), on par with Fitch.

Against this backdrop, Greece's GDP is estimated by the Bank to increase by 2.3% y-o-y, on average, in 2023-2027 in the baseline scenario, whereas the optimistic and the adverse scenarios envisage average annual GDP growth rates of 3.4% and 0.1%, respectively, in the same period. All three scenarios represent an informed assessment of the macroeconomic outlook, on the basis of the latest available information on economic conditions and relevant risk factors. The corresponding weighted average forecasts derived from the above paths are in line with the latest available official sector forecasts of GDP growth for Greece, as well as the respective private sector consensus and rating agencies' forecasts which were the most updated over the reference period. The probability weighting of the three forward-looking macroeconomic scenarios, i.e., baseline, optimistic and adverse, remained identical to those of 31 December 2022. Specifically, a probability weighting of 55%, 20% and 25% was assigned, respectively.

The macroeconomic variables utilized by the Bank relate to Greek economic factors, while the ECL allowance is mainly driven by the changes in GDP and House Price Index ("HPI"). GDP growth, directly or indirectly, affects the whole spectrum of the projected macro variables which are conditioned on the GDP path, including the HPI. The annual GDP growth in the baseline scenario is projected at 2.5%, on average, in FY.2023 and 2.6% in FY.2024 from 6.0% in FY.2022. For the HPI, the values corresponding to the optimistic scenario are exogenously assumed to be equal to those of the baseline over the projection period, in view of the uncertainty and the idiosyncratic non-modelled drivers of this market under the current juncture. The annual HPI growth in the baseline and the optimistic scenarios over the 2023-2027 period is projected at 5.1%, on average, compared with 3.1% in the same period under the adverse scenario.

A multiplicity of factors continues to affect the ECL allowance, with the main risks related to:

i) The substantial monetary policy tightening by the ECB in response to the persistent underlying inflation, which has been accompanied by a higher sensitivity of longer-term bond yields in 3Q.2023, as the market begins to price in a longer period of high interest rates compared with their previous estimates, started to weigh on bank credit growth. In fact, the higher interest rates along with the increased responsiveness of longer-term bond yields lead to a slowing in credit flows to the private sector, as demand for loans weakens both in Greece and the euro area, posing additional fiscal challenges for countries that have to refinance large amounts of public debt in the coming years, such as Italy.
ii) A temporary acceleration in food inflation in Greece is expected in 4Q.2023, due to upward pressures in food prices following the damages in agricultural production caused by the Storm Daniel, which hit Central Greece in September.
iii) A potential resurgence of energy market tensions, following the outbreak of the Hamas-Israel conflict in October, could affect global energy flows – leading to a pick-up in energy prices and a new acceleration of inflation both at a global and a regional level – and/or production. Additional pressures could emerge in the event of a new escalation of Ukraine crisis, which could be compounded by a crisis in the Middle East, weighing more heavily on economic growth, inflation and financial market conditions.
iv) Further downside risks could emerge in the event of a broader regional conflict involving other countries in the Middle East and an activation of terrorist groups in Europe or elsewhere, which could adversely affect tourism, external trade and investment, as well as cause additional migration flows from the affected areas.

The Group will continue to evaluate the ECL allowance and the related economic conditions each quarter, in order to timely capture any changes arising from uncertainty on macroeconomic trends.

NOTE 3 Segment reporting

The Group manages its business through the following business segments:

Retail banking

Retail banking includes all individual customers, professionals, small-medium and small-sized companies (companies with annual turnover of up to €2.5 million). The Bank, through its extended network of branches and digital business, offers to its retail customers various types of loans (mortgage, consumer and small business lending), cards (debit, credit and prepaid cards), deposit, investment and bancassurance products, as well as a wide range of other traditional services and products.

Corporate & investment banking

Corporate & investment banking includes lending to all large and medium-sized companies and shipping finance except for exposures transferred to the Special Assets Unit ("SAU") and investment banking activities. The Group offers its corporate customers a wide range of products and services, including financial and investment advisory services, deposit accounts, loans (denominated in both euro and foreign currency), foreign exchange and trade service activities.

Trouble Assets Units ("TAU") & Specialized Asset Solutions ("SAS")

In order to (a) manage more effectively delinquent, non-performing and denounced loans and (b) ensure compliance with the provisions of the Bank of Greece Executive Committee Act 42/30.5.2014 and Act 47/9.2.2015 and the Code of Conduct (referred to in Article 1(2) of Greek Law 4224/2013), the Bank established two dedicated and independent internal units, one responsible for the management of the Bank's retail loans (the Retail Collection Unit ("RCU")) and the other for the Bank's corporate delinquent exposures the SAU, which have the overall responsibility for the management of such loans (end-to-end responsibility). In 2022, a new business, SAS was setup in order to expand business in the emerging ecosystem of NPE's portfolio servicers and investors (e.g. acquisition financing, Real Estate Operating companies ("REOCo") financing).

Global markets and asset management

Global markets and asset management includes all treasury activities, asset management (mutual funds and closed end funds), custody services, private equity and brokerage.

Insurance

Until 31 March 2022, the Group offered a wide range of insurance products through its subsidiary company NIC and other subsidiaries in South Eastern Europe. NIC was classified as Held for Sale and Discontinued Operations. On 31 March 2022, the disposal of NIC to CVC Capital Partners was completed (see Note 22 "Acquisitions, disposals and other capital transactions").

International banking operations

The Group's international banking activities include a wide range of traditional commercial banking services, such as commerc ial and retail credit, trade financing, foreign exchange and taking of deposits. In addition, the Group offers shipping finance, investment banking and brokerage services through certain of its foreign branches and subsidiaries. The profit or losses from discontinued operations for the period ended 30 September 2022 include CAC Coral Ltd. The disposal of CAC Coral Ltd was completed on 15 July 2022 (see Note 22 "Acquisitions, disposals and other capital transactions").

Group

Other

Includes proprietary real estate management, warehousing business as well as unallocated income and expense of the Group.

Breakdown by business segment

9-month period ended

				Global
		Corporate &		markets &		International
	Retail	Investment		Asset		Banking
30.09.2023	Banking	Banking	TAU & SAS	Management	Insurance	Operations	Other	Group
Net interest income	1,152	480	72	(134)	-	73	(3)	1,640
Net fee and commission income	134	93	8	17	-	12	9	273
Other	-	(1)	(1)	132	-	12	(92)	50
Total income	1,286	572	79	15	-	97	(86)	1,963
Direct costs	(249)	(30)	(4)	(16)	-	(38)	(77)	(414)
Allocated costs and provisions(1)	(138)	13	(290)	10	-	(17)	(53)	(475)
Share of profit of equity method investments	-	-	-	-	-	-	1	1
Profit / (loss) before tax	899	555	(215)	9	-	42	(215)	1,075
Tax benefit / (expense)								(282)
Profit for the period from
continuing operations								793
Non-controlling interests								(2)
Profit attributable to NBG equity
shareholders								791
Depreciation and amortisation(1)	36	2	1	1	-	3	97	140
Credit provisions and other
impairment charges	(10)	(55)	269	(24)	-	17	38	235

(1) Includes depreciation and amortisation on investment property, property & equipment and software.

Breakdown by business segment

9-month period ended

		Corporate & Investment		Global markets & Asset		International Banking
30.09.2022	Retail Banking	Banking	ΤAU & SAS	Management	Insurance	Operations	Other	Group
Net interest income	213	394	104	201	-	55	(19)	948
Net fee and commission income	134	83	8	16	-	13	5	259
Other	(14)	20	(4)	327	-	19	(36)	312
Total income	333	497	108	544	-	87	(50)	1,519
Direct costs	(244)	(31)	(5)	(16)	-	(39)	(62)	(397)
Allocated costs and provisions(2)	(102)	(90)	(187)	(21)	-	(8)	(93)	(501)
Share of profit of equity method
investments	-	-	-	-	-	-	1	1
Profit / (loss) before tax	(13)	376	(84)	507	-	40	(204)	622
Tax benefit / (expense)								(170)
Profit for the period from continuing
operations								452
Non controlling interests								(2)
Profit / (loss) for the period from
discontinued operations	-	-	-	-	240	(10)	-	230
Profit attributable to NBG equity
shareholders								680

Depreciation, amortisation(2)	30	2	1	1	-	4	88	126
Credit provision and other
impairment charges	(43)	56	162	8	-	8	25	216

(2) Includes depreciation and amortisation on investment property, property & equipment and software.

Breakdown by business segment

		Corporate & Investment		Global Μarkets & Asset	International Banking
Segment assets as at 30 September 2023	Retail Banking	Banking	ΤAU & SAS	Management	Operations	Other	Group
Segment assets	7,447	24,171	2,298	27,489	2,621	4,514	68,540
Current income tax advance and deferred tax assets	-	-	-	-	-	-	4,672
Non-current assets held for sale	-	-	658	-	-	54	712
Total assets							73,924


Segment liabilities as at 30 September 2023
Segment liabilities	46,997	5,659	205	8,871	1,660	3,200	66,592
Current income and deferred tax liabilities	-	-	-	-	-	-	19
Liabilities associated with non-current assets held for
sale	-	-	-	-	-	25	25
Total liabilities							66,636
	Retail Banking	Corporate & Investment Banking	ΤAU & SAS	Global Μarkets & Asset Management	International Banking Operations	Other	Group
Segment assets as at 31 December 2022
Segment assets	7,352	23,693	3,054	31,694	2,608	4,304	72,705
Current income tax advance and deferred tax assets	-	-	-	-	-	-	4,913
Non-current assets held for sale	-	-	438	-	-	57	495
Total assets							78,113

Segment liabilities as at 31 December 2022
Segment liabilities	45,411	6,364	180	14,552	1,794	3,294	71,595
Current income and deferred tax liabilities	-	-	-	-	-	-	18
Liabilities associated with non-current assets held for sale	-	-	-	-	-	25	25
Total liabilities							71,638

Commissions Income breakdown by business segment

9-month period ended

30.09.2023	Retail Banking	Corporate & Investment Banking	TAU & SAS	Global markets & Asset Management	International Banking Operations	Other	Group
Custody, brokerage & investment banking	2	-	-	12	-	-	14
Retail lending fees	75	-	2	-	9	2	88
Corporate lending fees	11	73	3	2	2	1	92
Banking fees & similar charges	75	22	4	2	10	10	123
Fund management fees	-	-	-	12	-	-	12
Total Commisions Income	163	95	9	28	21	13	329

30.09.2022	Retail Banking	Corporate & Investment Banking	TAU & SAS	Global markets & Asset Management	International Banking Operations	Other	Group
Custody, brokerage & investment banking	1	-	-	11	-	-	12
Retail lending fees	115	-	4	-	9	-	128
Corporate lending fees	11	69	3	2	2	-	87
Banking fees & similar charges	71	21	4	1	11	3	111
Fund management fees	-	-	-	9	-	-	9
Total Commisions Income	198	90	11	23	22	3	347

NOTE 4 Net trading income / (loss) and results from investment securities and Gains / (losses) arising from the derecognition of financial assets measured at amortised cost

	Group 9-month period ended

Continuing Operations	30.09.2023	30.09.2022
Net trading result and other net unrealized gains / (losses) from financial assets or liabilities at fair value through
profit or loss	57	371
Net gain / (loss) from disposal of financial assets measured at fair value through other comprehensive income	24	(87)
Net trading result and other net unrealized gains / (losses) from financial assets or liabilities mandatorily measured
at fair value through profit or loss	(73)	12
Total net trading income / (loss) and results from investment securities	8	296

	Group
	9-month period ended
Continuing Operations	30.09.2023	30.09.2022
Gains / (losses) arising from the derecognition of financial assets measured at amortised cost	49	60
Total	49	60

NOTE 5 Credit provisions and other impairment charges

		Group
		9-month period ended
Continuing Operations	Note	30.09.2023	30.09.2022
a. Impairment charge for ECL
Loans and advances to customers at amortised cost	9	220	157
Net modification (gain)/loss	9	-	3
		220	160
b. Impairment charge for securities
Investment in debt instruments		(25)	8
		(25)	8
c. Other provisions and impairment charges
Impairment of investment property, property and equipment, software & other intangible assets and
other assets		-	1
Impairment of investment in subsidiaries and equity method investments		-	25
Legal and other provisions		40	22
		40	48

Total		235	216

NOTE 6 Restructuring costs

For the period ended 30 September 2023, restructuring costs include NIL for the Group relating to the Exit Schemes (30 September 2022: €59 million) and €3 million direct expenditure relating to the Transformation Program for the Group (30 September 2022: €5 million).

NOTE 7 Tax benefit /(expense)

	Group 9-month period ended

Continuing Operations	30.09.2023 30.09.2022
Current tax	(7)	(51)
Deferred tax	(275)	(119)
Tax benefit / (expense)	(282)	(170)

The nominal corporation tax rate for the Bank is 29%. The withholding tax on dividends distributed is 5%.

The unaudited tax years of the Group's investments accounted for by applying the equity method of accounting and subsidiaries are presented in Note 23 "Group companies".

The corporate income tax rate for legal entities, other than credit institutions, is 22%.

NOTE 8 Earnings per share

	Group
	9-month period ended
	30.09.2023	30.09.2022

Profit for the period attributable to NBG equity shareholders from continuing operations	791	450
Profit for the period attributable to NBG ordinary shareholders from continuing operations	791	450

Profit / (loss) for the period from discontinued operations (see Note 11)	-	230
Profit for the period attributable to NBG ordinary shareholders from continuing and discontinued operations	791	680

Weighted average number of ordinary shares outstanding for basic and diluted EPS	914,654,198	914,691,221

Earnings per share (Euro) - Basic and diluted from continuing operations	0.86	0.49
Earnings per share (Euro) - Basic and diluted from continuing and discontinued operations	0.86	0.74

NOTE 9 Loans and advances to customers

	Group
	30.09.2023	31.12.2022
Loans and advances to customers at amortised cost
Mortgage loans	7,315	7,906
Consumer loans	1,580	1,633
Credit cards	475	459
Small business lending	1,356	1,508
Retail lending	10,726	11,506
Corporate and public sector lending	25,280	25,049
Gross carrying amount of loans and advances to customers at amortised cost	36,006	36,555
ECL allowance on loans and advances to customers at amortised cost	(1,100)	(1,493)
Net carrying amount of loans and advances to customers at amortised cost	34,906	35,062
Loans and advances to customers mandatorily measured at FVTPL	413	499
Total Loans and advances to customers	35,319	35,561

As at 30 September 2023, the gross carrying amount of loans and advances to customers at amortised cost in corporate and public sector lending includes the Frontier senior notes of €2,595 million (31 December 2022: €2,795 million) and a short-term reverse repo of €3,000 million (31 December 2022: €3,200 million).

Loans and advances to customers at amortised cost and mandatorily measured at FVTPL | Group

	Stage 1	Stage 2	Credit impaired
As at 30 September 2023	12-month ECL	Lifetime ECL	Lifetime ECL	Total
Loans and advances to customers at amortised cost
Mortgage loans(1)
Gross carrying amount	5,186	1,854	275	7,315
ECL allowance	(22)	(86)	(86)	(194)
Net carrying amount	5,164	1,768	189	7,121
Consumer loans
Gross carrying amount	1,325	165	90	1,580
ECL allowance	(27)	(29)	(58)	(114)
Net carrying amount	1,298	136	32	1,466
Credit cards
Gross carrying amount	443	14	18	475
ECL allowance	(4)	(1)	(17)	(22)
Net carrying amount	439	13	1	453
Small business lending
Gross carrying amount	692	519	145	1,356
ECL allowance	(12)	(57)	(84)	(153)
Net carrying amount	680	462	61	1,203
Corporate lending (2)
Gross carrying amount	22,960	940	688	24,588
ECL allowance	(136)	(65)	(388)	(589)
Net carrying amount	22,824	875	300	23,999
Public sector lending
Gross carrying amount	626	52	14	692
ECL allowance	(7)	(8)	(13)	(28)
Net carrying amount	619	44	1	664
Total loans and advances to customers at amortised cost
Gross carrying amount	31,232	3,544	1,230	36,006
ECL allowance	(208)	(246)	(646)	(1,100)
Net carrying amount of loans and advances to customers at amortised cost	31,024	3,298	584	34,906
Loans and advances to customers mandatorily measured at FVTPL				413
Total loans and advances to customers				35,319

(1) Mortgage loans of €312 million are included in Stage 1, on the basis that they are loans guaranteed by the Hellenic Republic

(2) The senior notes relating to the Frontier securitization and the short-term reverse repo are included in Stage 1 of Corporate lending.

Notes to the Interim Financial Statements

Group

	Stage 1	Stage 2	Credit impaired
As at 31 December 2022	12-month ECL	Lifetime ECL	Lifetime ECL	Total
Loans and advances to customers at amortised cost
Mortgage loans(1)
Gross carrying amount	5,010	2,467	429	7,906
ECL allowance	(26)	(98)	(148)	(272)
Net carrying amount	4,984	2,369	281	7,634
Consumer loans
Gross carrying amount	1,203	281	149	1,633
ECL allowance	(23)	(30)	(101)	(154)
Net carrying amount	1,180	251	48	1,479

Credit cards
Gross carrying amount	409	17	33	459
ECL allowance	(8)	(2)	(31)	(41)
Net carrying amount	401	15	2	418

Small business lending
Gross carrying amount	679	629	200	1,508
ECL allowance	(14)	(70)	(118)	(202)
Net carrying amount	665	559	82	1,306
Corporate lending (2)
Gross carrying amount	22,307	1,153	945	24,405
ECL allowance	(134)	(91)	(577)	(802)
Net carrying amount	22,173	1,062	368	23,603
Public sector lending
Gross carrying amount	581	49	14	644
ECL allowance	(7)	(3)	(12)	(22)
Net carrying amount	574	46	2	622
Total loans and advances to customers at amortised cost
Gross carrying amount	30,189	4,596	1,770	36,555
ECL allowance	(212)	(294)	(987)	(1,493)
Net carrying amount of loans and advances to customers at amortised cost	29,977	4,302	783	35,062

Loans and advances to customers mandatorily measured at FVTPL				499

Total loans and advances to customers				35,561

(1) Mortgage loans of €393 million are included in Stage 1, on the basis that they are loans guaranteed by the Hellenic Republic (2) The senior notes relating to the Frontier securitization and the short-term reverse repo are included in Stage 1 of Corporate lending.

Movement of the ECL allowance on loans and advances to customers at amortised cost

	Stage 1	Stage 2	Credit impaired	Total ECL
Group	12-month ECL	Lifetime ECL	Lifetime ECL	allowance
ECL allowance at 1 January 2023	212	294	987	1,493
Transfers between Stages	50	(46)	(4)	-
Impairment charge for ECL (Note 5)	(54)	(2)	276	220
Modification impact on ECL	-	-	5	5
Write-offs	-	-	(210)	(210)
Change in the present value of the ECL allowance	-	-	(8)	(8)
Foreign exchange differences and other movements	-	-	(18)	(18)
Reclassified as Held for Sale	-	-	(382)	(382)
ECL allowance at 30 September 2023	208	246	646	1,100

Notes to the Interim Financial Statements

Group

Group	Stage 1 12-month ECL	Stage 2 Lifetime ECL	Credit impaired Lifetime ECL	Total ECL allowance
ECL allowance at 1 January 2022	204	272	1,179	1,655
Transfers between Stages	53	66	(119)	-
Impairment charge for ECL	(37)	(46)	301	218
Modification impact on ECL	-	-	(2)	(2)
Write-offs	-	-	(218)	(218)
Change in the present value of the ECL allowance	-	-	(12)	(12)
Foreign exchange differences and other movements	(8)	2	(86)	(92)
Reclassified as Held for Sale	-	-	(56)	(56)
ECL allowance at 31 December 2022	212	294	987	1,493

Total impairment charge for ECL on loans and advances to customers measured at amortised cost for the nine-month period ended on 30 September 2023 for the Group amounts to €220 million, including nil net modification gain/(loss) related to the loans and advances to customers with lifetime ECL whose cash flows were modified during the period, as disclosed in Note 5 "Credit provisions and other impairment charges". The respective figures for the year ended on 31 December 2022 are an impairment charge of €217 million including a net modification gain of €1 million. The impact of modification on the ECL allowance associated with these assets was a charge of €5 million (31 December 2022: release of €2 million) for the Group, as disclosed in the Movement of the ECL allowance on loans and advances to customers at amortised cost presented above.

Management adjustments in the ECL measurement of loans and advances to customers

Management adjustments may be performed to factor in certain conditions and circumstances prevailing at the reporting date which are not fully captured into the ECL models, based on management judgement, resulting in either an increase or a decrease in the total ECL allowance. Management adjustments relate to post-model adjustments ("PMAs") to the ECL model output which are calculated and allocated at a granular level following relevant risk assessment and analysis as well as to in-model adjustments to model inputs.

More specifically, the Group, in the context of its provisional framework, may occasionally make use of PMAs based on expert credit judgment, to capture additional risks and incorporate the impact from new economic conditions and related macroeconomic uncertainties as a result of unexpected events, which may not be timely reflected in the ECL model outputs. PMAs may also relate to accounting requirements not incorporated in the ECL model output due to model limitations. Management critically assesses the prevailing economic conditions at each quarter and determines whether PMAs are warranted to address emerging risks or whether prior period PMAs are no longer requir ed, incorporating the related uncertainties in the estimation of expected credit losses in a valid, consistent and efficient manner, in accordance with the Group's internal respective frameworks. The determination and estimation of PMAs is performed in accordance with established dedicated processes and is subject to strict governance arrangements, ensuring the adequacy and soundness of the ECL measurement under IFRS 9.

As at 30 September 2023, PMAs include adjustments relating to the economic uncertainty resulting from the persistence of financial market volatility, energy-related uncertainty and food inflation pressures, also amplified by the recent flood-related damages in agricultural production and geopolitical tensions, which may have an adverse impact on the credit condition of corporates and households, depending on their sensitivity to the macro-financial environment. In this context, PMAs have been applied on exposures of retail and corporate obligors that relate to risk sensitive segments considering their respective risk profiles, which are more exposed to further deterioration of the economic conditions and related financial pressures caused by increasing cost of living and higher operating costs. The adjustment is performed on performing exposures and involves the application of increased provision coverage rates, following relevant risk assessment. Furthermore, other management adjustments have also been applied, mainly focusing on recovery strategies to be pursued for NPEs.

As at 31 December 2022, PMAs included similar adjustments relating to the economic uncertainty resulting from the aforementio ned factors, and had been applied on exposures of retail and corporate obligors that had been either under post support measures during 2022 or related to other risk sensitive segments considering their respective risk profiles. Furthermore, other management adjustments had also been applied, mainly focusing on recovery strategies to be pursued for NPEs.

NOTE 10 Property and equipment and Other liabilities

During the second quarter of 2023 the Bank purchased certain real estate assets that it had formerly been leasing.

This resulted in the recognition of land and buildings for the amount of €151 million, as well as the termination of the associated leases with a reduction of €173 million and €179 million in the RoU asset, included in Property and equipment and the lease liability, included in Other liabilities, respectively for the Group. As a result of this transaction, the Group recognized a gain in other income of €6 million.

Additionally, during the third quarter of 2023 the Bank renegotiated certain lease payments related to 87 leases with Prodea Investments S.A. This triggered a remeasurement of the lease liability using a new IBR rate, which resulted in a reduction of the lease liability and the RoU asset by €88 million for the Group.

Furthermore, on 29 June 2023, the Bank entered into a binding memorandum of understanding with Prodea Investments S.A. to buy a number of real estate assets which the Bank currently leases. The remaining amount of this commitment is approximately €154 million and the Bank expects to gradually complete the acquisition of the remaining real estate assets by the end of 2023.

NOTE 11 Assets and liabilities held for sale and discontinued operations

Non-Current Assets and Disposal Groups classified as held for sale and discontinued operations

Non-current assets held for sale as at 30 September 2023 and as at 31 December 2022 comprise of Probank Leasing S.A. (part of Project "Pronto", see below), as well as planned loan portfolio disposals mainly relating to Projects "Frontier III, Frontier II", Project "Solar" and Project "Pronto". Profit / (loss) from discontinued operations for the period ended 30 September 2022, comprises of NIC and CAC Coral Ltd.

Disposal of subsidiaries

Ethniki Hellenic General Insurance S.A.

On 24 March 2021, NBG's Board of Directors approved the sale of the 90.01% out of 100% stake in NIC and authorized the Bank's Management to proceed with the signing of the Share Sale and Purchase Agreement ("SPA") with CVC Capital Partners ("CVC") on 26 March 2021. The transaction was approved by the Extraordinary General Meeting of NBG's Shareholders held on 21 April 2021.

The closing of the transaction took place on 31 March 2022, following the reception of the required supervisory approvals by national and EU authorities (see Note 22 "Acquisitions, disposals and other capital transactions").

CAC Coral Ltd

On 16 October 2020, a sale and purchase agreement was signed with Bain Capital for the sale of a 100% stake in CAC Coral Ltd.

The transaction was concluded on 15 July 2022, after the approval of the competent regulatory authorities, (see Note 22 "Acquisitions, disposals and other capital transactions").

Disposal of NPE portfolios

Project "Frontier II"

In the context of deleveraging its NPEs through inorganic actions and according to its NPE Divestment Policy, the Bank decided the disposal of a portfolio of Greek Non-Performing Exposures in the form of a rated securitization that will utilize the provisions of Hellenic Asset Protection Scheme ("HAPS"), known as Hercules II. The portfolio includes secured Large Corporate, Small and Medium Enterprises, Small Business Lending, Residential Mortgage loans and Consumer loans with a total gross book value of c. €1 billion (as of the cut-off date 31 December 2021).

On 29 July 2022, the Bank announced that it has entered into a definitive agreement with funds managed by Bracebridge Capital LLC for the sale of 95% of the Mezzanine and Junior notes. NBG will retain the 100% of the Senior notes and 5% of the Mezzanine and Junior notes.

The transaction is estimated to be completed within the Q1.2024, subject to required approvals.

Project "Pronto"

The Bank decided the disposal of the Non-Performing leasing exposures through: i) the sale of the shares of the Probank Leasing S.A. and ii) the sale of the Bank's leasing portfolio (ex-FBB) and NBG Leasing S.A. ("NBGL") leasing portfolio, with a total gross book value of €33 million as of the 30 September 2023.

The transaction is estimated to be completed within the Q1.2024, subject to required approvals.

Group

Project "Solar"

In December 2021, the Bank decided to launch the divestment of the secured portfolio of SMEs (Project "Solar") with a gross book value c. €170 million (as of the cut-off date 30 September 2021), through a joint securitization process with the other Greek financial institutions under HAPS. In August 2022, the Bank together with the other Greek financial institutions submitted to the Greek Ministry of Finance a joint application for inclusion of the senior notes to be issued in the context of the Solar Securitization in the HAPS scheme.

On 1 November 2023, NBG together with the other Greek systemic banks entered into a definitive agreement with funds managed by Waterwheel Capital Management, L.P. for the sale of 95% of the Mezzanine and Junior notes. The banks will retain the 100% of the Senior notes and 5% of the Mezzanine and Junior notes for risk retention purposes.

The transaction is expected to be completed within the Q1.2024, subject to required approvals.

Project "Frontier III"

In September 2023, the Bank decided the disposal of a portfolio of Greek Non-Performing Exposures in the form of a rated securitization aiming to utilize the provisions of HAPS. The portfolio consists of predominantly secured Large Corporate, SMEs, SBL, Mortgage Loans and Consumer Loans with a total gross book value of c. €0.6 billion (as of the cut-off date, i.e., 30 June 2023).

The transaction is estimated to be completed within the 1H.2024, subject to required approvals.

Condensed Income Statement of discontinued operations	Group
	9-month period ended
€ million	30.09.2023	30.09.2022(1)

Net interest income	-	8
Net fee and commission income	-	(6)
Earned premia net of claims and commissions	-	52
Net trading income / (loss) and results from investments securities	-	(4)
Other income	-	1
Total income	-	51
Operating expenses	-	(18)
Credit Provisions and other impairment charges (2)	-	174
Profit before tax	-	207

Tax benefit/(expense)	-	(7)
Profit for the period from discontinued operations	-	200
Profit on disposal (see Note 22)	-	30

Total profit for the period from discontinued operations (attributable to NBG equity shareholders)	-	230

(1) Includes NIC and CAC Coral Ltd.

(2) Credit provisions and other impairment charges refer mainly to remeasurement impairments of NIC.

Analysis of non-current assets held for sale and liabilities associated with non-current assets held for sale

		Group
ASSETS	30.09.2023(1)	31.12.2022
Loans and advances to customers	711	494
Other assets	1	1
Total assets	712	495

LIABILITIES

Other liabilities	25	25
Total liabilities	25	25

(1) Includes Probank Leasing S.A.

NOTE 12 Due to banks

Due to Banks mainly comprise of the Bank's participation in the TLTRO III operations which as at 30 September 2023 amounted to €1.9 billion (31 December 2022: €8.1 billion). During the nine-month period ended 30 September 2023, the Bank repaid €6.2 billion TLTROs. For more information regarding TLTRO III transactions please refer to Note 30 of the Annual Financial Statements as at and for the year ended 31 December 2022.

Αs at 30 September 2023, at a Group level, "Due to Banks" also include securities sold under agreements to repurchase with financial institutions of Nil and other deposits with financial institutions of €1.5 billion (31 December 2022: €0.1 billion and €1.6 billion, respectively).

NOTE 13 Due to customers

	Group
€ million	30.09.2023	31.12.2022
Deposits:
Individuals	43,613	42,122
Corporate	10,797	11,348
Government and agencies	1,882	1,722
Total	56,292	55,192

	Group
	30.09.2023	31.12.2022
Deposits:
Savings accounts	29,848	31,333
Current & Sight accounts	13,708	14,770
Time deposits	10,820	7,177
Other deposits	1,916	1,912
Total	56,292	55,192

Included in time deposits are deposits which contain one or more embedded derivatives. The Group has designated such deposits as financial liabilities at fair value through profit or loss. As at 30 September 2023, these deposits amounted to €810 million (31 December 2022: €608 million).

In accordance with Greek Law 4151/2013, all dormant deposit accounts are subject to statute of limitations of 20 years in fav our of the Greek State. All banks operating in Greece are required by April of every year to remit the cash balances of such dormant accounts to the Greek State. The Bank until 30 September 2023 had remitted to the Greek State €3 million in respect of dormant account balances (2022: NIL).

NOTE 14 Debt securities in issue

National Bank of Greece issues €500m Subordinated Tier II bonds with a yield of 8,0%

On 26 September 2023, the Bank issued €500 million Subordinated Tier II bonds in the international capital markets with a yield of 8.0%. The bond matures in 10.25 years and is callable in 5.25 years. The issuance is part of the Bank's strategy to optimize its capital structure and increase its Minimum Required Eligible Liabilities (MREL), which is a supervisory requirement for all banks.

NOTE 15 Contingent liabilities, pledged assets and commitments

a. Legal proceedings

The Bank and certain of its subsidiaries are defendants in certain claims and legal actions and proceedings arising in the ordinary course of business which are generally based on alleged violations of consumer protection, banking, employment and other laws. None of these actions and proceedings is individually material. Neither the Bank nor any other Group member is involved in any governmental, legal or arbitration proceedings (including proceedings that are pending or threatened of which the Bank is aware) that may have a significant impact on the financial position or profitability of the Group.

The Group establishes provisions for all litigations, for which it believes it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. These provisions may change from time to time, as appropriate, in light of additional information. For the cases for which a provision has not been recognized, Management is not able to reasonably estimate possible losses, since the proceedings may last for many years, many of the proceedings are in early stages, there is uncertainty as to the likelihood of the final result, there is uncertainty as to the outcome of pending appeals and there are significant issues to be resolved. However, in the Management's opinion, after consultation with legal counsel, the final outcome of these matters is not expected to have a material adverse effect on the Group's Statement of Financial Position, Income Statement and Cash Flow Statement. As at 30 September 2023 the Group has provided for cases under litigation the amount of €23 million (31 December 2022: €30 million).

b. Pending tax audits

Tax authorities have not yet audited all of the Group's entities for certain financial years and accordingly their tax obligations for those years may not be considered final. Additional taxes and penalties may be imposed as a result of such tax audits; although the amount cannot be determined, it is not expected to have a material effect on the Group's Statement of Financial Position.

The years 2017, 2018, 2019, 2020 and 2021 have been tax audited by PwC S.A. and the tax certificates, which were unqualified, were issued on 26 October 2018, 31 October 2019, 27 October 2020, 27 October 2021 and 27 October 2022, respectively. The year 2022 is being audited for tax compliance purposes by PwC S.A., however it is not expected to have a material effect on the Group's Statement of Financial Position.

On 31 December 2022, the right of the tax authorities to issue a deed for re-calculation of income tax for the years up to and including year 2016 expired. For the years 2017 onwards, in accordance with the Ministerial Decision 1006/2016 there is no exception from tax audit by the tax authorities for those entities that have been tax audited by an independent auditor who has issued an unqualified tax audit certificate.

Therefore, the tax authorities may re-audit the tax books of the Bank for those years. However, the Bank does not expect any material effect on the Group's Statement of Financial Position.

For the subsidiaries and associates regarding unaudited tax years refer to Note 23 "Group companies".

c. Credit commitments

In the normal course of business, the Group enters into contractual commitments on behalf of its customers and is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These contractual commitments consist of commitments to extend credit, commercial letters of credit and standby letters of credit and guarantees. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the conditions established in the contract. Commercial letters of credit ensure payment by the Bank to a third party for a customer's foreign or domestic trade transactions, generally to finance a commercial contract for the shipment of goods. Standby letters of credit and financial guarantees are conditional commitments issued by the Group to guarantee the performance of a customer to a third party. All of these arrangements are related to the normal lending activities of the Group. The Group's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, commercial and standby letters of credit is represented by the contractual nominal amount of those instruments. The Group uses the same credit polic ies in making commitments and conditional obligations as it does for on-balance sheet instruments.

	Group
	30.09.2023	31.12.2022

Standby letters of credit and financial guarantees written	5,059	4,657
Commercial letters of credit	761	1,049
Total credit related commitments	5,820	5,706

In addition to the above, credit commitments also include commitments to extend credit which as at 30 September 2023 amounted to €12,329 million for the Group (31 December 2022: €13,504 million). Commitments to extend credit at 30 September 2023 do not include any amounts, which cannot be cancelled without certain conditions being met at any time and without notice, or for which automatic cancellation due to credit deterioration of the borrower is not allowed.

d. Assets pledged

	Group
	30.09.2023	31.12.2022
Assets pledged as collateral	3,249	10,956

As at 30 September 2023, the Group has pledged mainly for funding purposes with the ECB and financial institutions, the following instruments:

trading and investment debt instruments of €179 million (31 December 2022: €3,505 million); and
loans and advances to customers at amortised cost amounting to €3,070 million (31 December 2022: €5,751 million).

Furthermore, as at 31 December 2022, the Group has pledged covered bonds of a nominal value of €1,700 million backed with mortgage loans of total value of €3,217 million.

In addition to the pledged items presented above, as at 30 September 2023, the Group has pledged an amount of €313 million (31 December 2022: €312 million) included in "Due from banks" with respect to a guarantee for the non-payment risk of the Hellenic Republic, as well as Greek Government bond of €400 million (31 December 2022: €443 million) for trade finance transactions.

NOTE 16 Share capital, share premium and treasury shares

Share Capital – Ordinary Shares

The total number of ordinary shares as at 30 September 2023 and 31 December 2022 was 914,715,153, with a nominal value of 1.00 Euro per share.

On 28 July 2022, the Annual General Meeting of the Bank's shareholders decided, the offsetting of (a) the special reserve of article 31, par. 2, Greek Law 4548/2018 (former special reserve of article 4, par. 4a, Greek Law 2190/1920) of €5,014 million and (b) part of the share premium account of €10,324 million with accumulated accounting losses €15,338 million, according to articles 31 par. 2 and 35 par. 3 of Greek Law 4548/2018, as in force. The offsetting of the special reserve and the share premium with the accumulated accounting losses serves the purpose of rationalizing the accounting and regulatory equity of the Bank and the Group and facilitating potential future dividends distribution. On 8 September 2022, the offsetting was approved by the regulatory authorities.

Treasury shares

Treasury shares transactions are conducted by the Group subsidiary, NBG Securities S.A. and are summarized as follows:

Group
No of shares	€ million
37,513	-
4,402,533	14
(4,440,046)	(14)
-	-
1,693,145	9
(1,538,968)	(8)
154,177	1

NOTE 17 Tax effects relating to other comprehensive income / (expense) for the period

Group		9-month period ended		9-month period ended
	30.09.2023			30.09.2022
	Gross	Tax	Net	Gross	Tax	Net
Items that may be reclassified subsequently to profit or loss:
Unrealised gains / (losses) on investments in available for-sale for the period	-	-	-	(217)	35	(182)
Reclassification adjustments on investments in available-for-sale included in the income statement	-	-	-	(35)	8	(27)
Impairment loss recognized on investments in available for-sale	-	-	-	1	-	1
Unrealised gains / (losses) on investments in debt instruments measured at FVTOCI	43	-	43	(291)	-	(291)
Losses / (Gains) on investments in debt instruments measured at FVTOCI reclassified to profit or loss on
disposal	(24)	-	(24)	87	-	87
ECL impairment recognised to profit or loss	(4)	-	(4)	1	-	1
Gain reclassified to income statement on disposal of NIC	-	-	-	(38)	-	(38)
Investments in debt instruments	15	-	15	(492)	43	(449)
Currency translation differences	(20)	-	(20)	(5)	-	(5)
Loss reclassified to income statement on disposal of NIC	-	-	-	4	-	4
Currency translation differences	(20)	-	(20)	(1)	-	(1)
Cash flow hedge	(1)	-	(1)	18	-	18
Total of items that may be reclassified subsequently to profit or loss	(6)	-	(6)	(475)	43	(432)
Items that will not be reclassified subsequently to profit or loss:
Gains / (losses) on investments in equity instruments measured at FVTOCI	16	-	16	(10)	-	(10)
(Gains)/losses on investments in equity instruments designated as at FVTOCI transferred to retained earnings upon disposal	(7)	-	(7)	(4)	-	(4)
Total of items that will not be reclassified subsequently to profit or loss	9	-	9	(14)	-	(14)
Other comprehensive income / (expense) for the period	3	-	3	(489)	43	(446)

NOTE 18 Cash and cash equivalents

	Group
	30.09.2023	31.12.2022
Cash and balances with central banks	8,237	14,110
Due from banks	3,298	3,545
Trading securities	60	7
Investment securities	41	63
Total	11,636	17,725

For more information regarding the change in cash and balances with central banks during the nine-month period ended 30 September 2023, please see Note 12 "Due to banks".

NOTE 19 Related party transactions

The nature of the significant transactions entered into by the Group with related parties during the 9-month period ended 30 September 2023 and 30 September 2022 and the significant balances outstanding as at 30 September 2023 and 31 December 2022 are presented below.

a. Transactions with members of the Board of Directors and management

The Group entered into transactions with the members of the Board of Directors, the General Managers and the members of the Senior Executive Committees of the Bank, the key management of other Group companies, as well as with the close members of family an d entities controlled or jointly controlled by those persons.

All loans granted to related parties (i) were made in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collaterals, as those prevailing at the time for comparable transactions with other persons, and (iii) did not involve more than the normal risk of collectability or present other unfavourable features.

The members of the Board of Directors of the Bank are disclosed in Note 1 "General Information".

As at 30 September 2023, loans and advances to customers, deposits/liabilities and letters of guarantee, at Group level, amounted to €4 million, €7 million and NIL respectively (31 December 2022: €4 million, €7 million and NIL respectively).

Total compensation to related parties for the period ended 30 September 2023, amounted to €7 million for the Group (30 September 2022: €6 million), mainly relating to short-term benefits, in particular salaries and social security contributions.

b. Transactions with subsidiaries, associates and joint ventures

At a Group level, only transactions and balances with associates and joint ventures are included, as transactions and balances with subsidiaries are eliminated on consolidation.

	Group
	30.09.2023	31.12.2022
Assets	38	15
Liabilities	49	23
Letters of guarantee, contingent liabilities and other off balance sheet accounts	4	3
	9-month period ended
	30.9.2023	30.9.2022
Interest, commission and other income	11	-
Interest, commission and other expense	4	2

c. Transactions with other related parties

The total receivables of the Group, from the employee benefits related funds as at 30 September 2023, amounted to €746 million (31 December 2022: €746 million). For these receivables the Group recognized a provision of €739 million (31 December 2022: €739 million).

The total payables of the Group, to the employee benefits related funds as at 30 September 2023, amounted to €46 million (31 December 2022: €41 million).

d. Transactions with Hellenic Financial Stability Fund

Taking into consideration the Hellenic Financial Stability Fund ("HFSF") Law, the Relationship Framework Agreement ("RFA") between the Bank and the HFSF that was signed in December 2015, the fact that the HFSF holds 40.39% of the Bank's ordinary shares and that the HFSF has representation in the Bank's Board of Directors and other Board Committees of the Bank, the HFSF is considered a related party of the Group. Other than the ordinary shares issued by the Bank and held by the HFSF, no material transactions or balances exist with the HFSF.

NOTE 20 Capital adequacy

In June 2013, the European Parliament and the Council of Europe issued Directive 2013/36/EU and Regulation (EU) No 575/2013 ( known as Capital Requirements Directive IV ("CRD IV") and Capital Requirements Regulation ("CRR") respectively), which incorporate the key amendments that have been proposed by the Basel Committee for Banking Supervision (known as ("Basel III")). Directive 2013/36/EU has been transported into Greek Law by virtue of Greek Law 4261/2014 and Regulation (EU) No 575/2013 has been directly applicable to all EU Member States since 1 January 2014 and certain changes under CRD IV were implemented gradually.

Regulation (EU) No 575/2013, as amended by Regulation (EU) No 876/2019 (CRR2), defines the minimum capital requirements (Pillar 1 requirements) and Directive 2013/36/EU, as amended by Directive 2019/878/EU (CRD V), defines the combined buffer requirements for EU institutions. In addition, Directive 2013/36/EU provides (Art. 97 et seq.) that Competent Authorities regularly carry out the Supervisory Review and Evaluation process ("SREP"), to assess and measure risks not covered, or not fully covered, under Pillar 1 and determine additional capital and liquidity requirements (Pillar 2 requirements). SREP is conducted under the lead of the ECB. The SREP decision is tailored to each bank's individual profile. The Pillar 1 (minimum regulatory requirement) and Pillar 2 requirements form the Total SREP Capital Requirement (TSCR).

NBG Group is required to meet its Overall Capital Requirements (OCR) that consists of the Total SREP Capital Requirement (TSCR) and the Combined Buffer Requirement (CBR) as defined in point (6) of Article 128 of Directive 2013/36/EU.

The table below presents the breakdown of the Group's CET1 and Total Capital regulatory requirements:

	CET1 Capital Requirements			Overall Capital Requirements
	2023	2022 post capital relief measures	2022	2023	2022 post capital relief measures	2022
Pillar 1 (minimum regulatory requirement)	4.50%	4.50%	4.50%	8.00%	8.00%	8.00%
Pillar 2 (P2R)	1.69%	1.69%	1.69%	3.00%	3.00%	3.00%
Total SREP Capital Requirement (TSCR)	6.19%	6.19%	6.19%	11.00%	11.00%	11.00%
Capital conservation buffer (CCoB)	2.50%	-	2.50%	2.50%	-	2.50%
Countercyclical capital buffer (CCyB)	0.08%	-	0.03%	0.08%	-	0.03%
O-SII Buffer	1.00%	0.75%	0.75%	1.00%	0.75%	0.75%
Combined Buffer Requirement (CBR)	3.58%	0.75%	3.28%	3.58%	0.75%	3.28%
Overall Capital Requirement (OCR)	9.77%	6.94%	9.47%	14.58%	11.75%	14.28%

The aim of the Group is to maintain a strong capital basis, well above regulatory requirements ensuring the execution of Group's business plan and the achievement of its strategic goals.

The capital adequacy ratios for the Group are presented in the table below:

	Group
	30.09.2023	30.09.2023*

Common Equity Tier 1	15.8%	17.9%	16.6%
Tier 1	15.8%	17.9%	16.6%
Total capital adequacy ratio	18.3%	20.3%	17.7%

* including profit for the period, post dividend accrual.

On 30 September 2023, Group's CET1 and Total Capital ratios stood at 15.8% and 18.3% respectively, well above the required capital requirement of 9.77% for CET1 and of 14.58% for Total Capital.

DTC Law

Article 27A of Greek Law 4172/2013 ("DTC Law"), as currently in force, allows credit institutions, under certain conditions, and from 2017 onwards to convert deferred tax assets ("DTAs") arising from (a) private sector initiative ("PSI") losses, (b) accumulated provisions for credit losses recognized as at 30 June 2015, (c) losses from final write off or the disposal of loans and (d) accounting write offs, which will ultimately lead to final write offs and losses from disposals, to a receivable ("Tax Credit") from the Greek State. Items (c) and (d) above were added with Greek Law 4465/2017 enacted on 29 March 2017. The same Greek Law 4465/2017 provided that the total tax relating to cases (b) to (d) above

Notes to the Interim Financial Statements Group

cannot exceed the tax corresponding to accumulated provisions recorded up to 30 June 2015 less (a) any definitive and cleared Tax Credit, which arose in the case of accounting loss for a year according to the provisions of par.2 of article 27A of Greek Law 4172/2013, which relate to the above accumulated provisions, (b) the amount of tax corresponding to any subsequent specific tax provisions, which relate to the above accumulated provisions and (c) the amount of the tax corresponding to the annual amortization of the debit difference that corresponds to the above provisions and other losses in general arising due to credit risk.

The main condition for the conversion of DTAs to a Tax Credit, is the existence of an accounting loss at Bank level of a respective year, starting from accounting year 2016 and onwards. The Tax Credits will be calculated as a ratio of IFRS accounting losses to net equity (excluding the year's losses) on a solo basis and such ratio will be applied to the remaining Eligible DTAs in a given year to calculate the Tax Credit that will be converted in that year, in respect of the prior tax year. The Tax Credit may be offset against income taxes payable. The non-offset part of the Tax Credit is immediately recognized as a receivable from the Greek State. The Bank is obliged to issue conversion rights to the Greek State for an amount of 100% of the Tax Credit in favour of the Greek State and will create a specific reserve for an equal amount. Common shareholders have pre-emption rights on these conversion rights. The reserve will be capitalized with the issuance of common shares in favour of th e Greek State. This legislation allows credit institutions to treat such DTAs as not "relying on future profitability" according to CRD IV, and as a result such DTAs are not deducted from CET1, hence improving a credit institution's capital position.

Furthermore, Greek Law 4465/2017 amended article 27 "Carry forward losses" by introducing an amortization period of 20 years for losses due to loan write offs as part of a settlement or restructuring and losses that crystallize as a result of a disposal of loans. In addition, in 2021 Greek Law 4831 further amended article 27 of Greek Law 4172/2013 (see Note 27 "Deferred tax assets and liabilities" of the Annual Financial Report for the year ended 31 December 2022).

On 7 November 2014, the Bank convened an extraordinary General Shareholders Meeting which resolved to include the Bank in the DTC Law. An exit by the Bank from the provisions of the DTC Law requires regulatory approval and a General Shareholders meeting resolution.

As of 30 September 2023, the amount of DTAs that were eligible for conversion to a receivable from the Greek State subject to the DTC Law was €3.8 billion (31 December 2022: €3.9 billion). The conditions for conversion rights were not met in the year ended 31 December 2022 and no conversion rights are deliverable in 2023.

2023 EBA EU-wide Stress Test ("2023 ST")

On 31 January 2023, the European Banking Authority (EBA) launched the 2023 ST for a sample of 70 EU-wide participating banks. 2023 ST was designed to provide valuable input for assessing the resilience of the European banking sector in the current uncertain and changing macroeconomic environment. NBG participated in the 2023 ST as part of the EBA sample of euro-area's largest banks.

The 2023 ST was based on a static balance sheet approach, thus factoring in the Group's financial and capital position of 31.12.2022 as a starting point and conducting a 3-year horizon stress simulation (for the period 2023-2025), under a Baseline and an Adverse scenario.

On 28 July 2023, EBA announced the results of the 2023 ST. Under the commonly applied methodology in the Adverse scenario, the Bank's fully loaded ("FL") CET 1 ratio incurred a maximum depletion of 2.71%, reaching its lowest level of 13.1% in the first year of the projections (2023). This outcome positions the Bank as a top performer among its domestic peers which report a maximum depletion of 3.50% on average excluding the Bank.

By the same indicator, the Bank ranks 11th among the 70 EU-wide participating banks, and 5th considering the FL CET1 depletion by the end of 2025.

Considering the full 3-year horizon of the Stress Test:

• Under the Adverse scenario, the Bank's FL CET 1 ratio settled at 14.5% at the end of 2025, indicating a depletion of 1.36% compared with the starting point of the exercise.

• The Baseline scenario resulted in a capital accretion of 5.76% over the 3-year horizon, with the FL CET 1 ratio reaching the level of 21.6% in 2025.

The result of the 2023 ST demonstrates the Group's resilience to shocks and ability to maintain solid capital levels, even in conditions of severe economic stress. Comparing the performance to previous stress test exercises, the Bank has achieved notable progress over the past years in strengthening its balance sheet, despite globally challenging economic conditions. Specifically, the 2023 ST outcome reflects the successful NPE deleveraging Strategy, the build-up of adequate capital buffers as well as a favorable liquidity position of the Group.

MREL Requirements

Under the Directive 2014/59 (Bank Recovery and Resolution Directive or ("BRRD"), as amended by Directive 2019/879 (BRRD II), banks in the European Union are required to maintain a Minimum Requirement for own funds and Eligible Liabilities ("MREL"), which ensures sufficient lossabsorbing capacity in resolution. MREL includes a risk- and a leverage-based dimension. MREL is therefore expressed as two ratios that both have to be met: (i) as a percentage of Total Risk Exposure Amount ("TREA"), (the "MREL-TREA"); and (ii) as a percentage of the Leverage Ratio Exposure ("LRE"), (the "MREL-LRE").

Notes to the Interim Financial Statements Group

Instruments qualifying for MREL are own funds (Common Equity Tier 1, Additional Tier 1 and Tier 2), as well as certain eligible liabilities (mainly senior unsecured bonds). Regulation (EU) No 806/2014 of the European Parliament and of the Council, as amended by Regulation (EU) No 877/2019 of the European Parliament and of the Council allows the Single Resolution Board ("SRB") to set in addition to the MREL requirement, a "subordination" requirement, within MREL, against which only subordinated liabilities and own funds count.

On 22 December 2022, the Bank received the SRB's decision, via the Bank of Greece, requiring it to meet the following targets: MREL of 23.53% plus CBR of TREA and LRE (leverage ratio exposure) of 5.88%, by 31 December 2025. Both targets should be calculated on a consolidated basis. The interim annual targets until 31 December 2025 are informative and are calculated through linear interpolation/build-up between the two binding targets of 1 January 2022 and 31 December 2025. Therefore, the interim non-binding MREL targets, in 2023, stood at 20.5% of TREA including CBR and moves to 22.7% of TREA in 2024 including CBR. Finally, according to the abovementioned SRB's decision, for 2023 no subordination requirement is set for the Bank.

In the context of the implementation of NBG's strategy to ensure ongoing compliance with its MREL requirements, the Bank succ essfully completed the issue of €500 million MREL-eligible Tier 2 instrument in September 2023 (see Note 14 "Debt securities in issue").

As at 30 September 2023, following the above Tier 2 issuance, the Bank's MREL ratio at consolidated level stands at 24.5% of RWAs (including profit for the period), which is significantly above the interim non - binding MREL target of January 2024.

NOTE 21 Fair value of financial assets and liabilities

a. Financial instruments not measured at fair value

The table below summarises the carrying amounts and the fair values of those financial assets and liabilities that are not presented on the Group's Statement of Financial Position at fair value and the fair value is materially different from the carrying amount.

	Carrying amount	Fair value
Group	30.09.2023	30.09.2023
Financial Assets
Loans and advances to customers at amortised cost	34,906	36,071
Investment securities at amortised cost	12,050	11,115
Financial Liabilities
Due to customers	55,482	55,560
Debt securities in issue	2,292	2,352
	Carrying amount	Fair value
Group	31.12.2022	31.12.2022
Financial Assets
Loans and advances to customers at amortised cost	35,062	35,817
Investment securities at amortised cost	10,357	9,128
Financial Liabilities
Due to customers	54,584	54,640
Debt securities in issue	1,731	1,728

The following methods and assumptions were used to estimate the fair values of the above financial instruments on 30 September 2023 and 31 December 2022:

The carrying amount of cash and balances with central banks, due from and due to banks, other borrowed funds as well as accru ed interest, approximates their fair value.

Loans and advances to customers at amortised cost: The fair value of loans and advances to customers at amortised cost is estimated using discounted cash flow models. The discount rates are based on current market interest rates offered for instruments with similar terms to borrowers of similar credit quality.

Investment securities at amortised cost: The fair value of investment securities at amortised cost is estimated using market prices or using discounted cash flow models based on current market interest rates offered for instruments with similar credit quality.

Notes to the Interim Financial Statements

Group

Due to customers: The fair value for demand deposits and deposits with no defined maturity is determined to be the amount payable on demand at the reporting date. The fair value for fixed-maturity deposits is estimated using discounted cash flow models based on rates currently offered for the relevant product types with similar remaining maturities.

Debt securities in issue: The fair value of debt securities in issue is estimated using market prices, or if such are not available, using a discounted cash flow analysis, based on current market rates of similar maturity and credit quality debt securities.

b. Financial instruments measured at fair value

The tables below present the fair values of those financial assets and liabilities presented on the Group's Statement of Financial Position at fair value by fair value measurement level on 30 September 2023 and on 31 December 2022. Other Assets include an investment in spot position for emission rights which is carried at fair value through profit or loss.

Group
As at 30 September 2023	Fair value measurement using
Financial Assets	Level 1	Level 2	Level 3	Total at fair value
Financial assets at fair value through profit or loss	293	94	-	387
Financial assets mandatorily at fair value through profit or loss	270	10	436	716
Derivative financial instruments	3	1,794	12	1,809
Investment securities at fair value through other comprehensive income	1,284	1,636	53	2,973
Other Assets	380	-	-	380
Total	2,230	3,534	501	6,265
Financial Liabilities
Due to customers designated as at fair value through profit or loss	-	810	-	810
Derivative financial instruments	1	1,790	4	1,795
Total	1	2,600	4	2,605

As at 31 December 2022	Fair value measurement using
Financial Assets	Level 1	Level 2	Level 3	Total at fair value
Financial assets at fair value through profit or loss	139	81	-	220
Financial assets mandatorily at fair value through profit or loss	152	10	512	674
Derivative financial instruments	2	1,947	13	1,962
Investment securities at fair value through other comprehensive income	833	1,949	51	2,833
Other assets	298	-	-	298
Total	1,424	3,987	576	5,987
Financial Liabilities
Due to customers designated as at fair value through profit or loss	-	608	-	608
Derivative financial instruments	1	1,872	50	1,923
Other Liabilities	1	-	-	1
Total	2	2,480	50	2,532

There were no financial assets or liabilities classified as held-for-sale in the Group's Statement of Financial Position measured at fair value as at 30 September 2023 and 31 December 2022.

Transfers between Level 1 and Level 2

As at 30 September 2023, one security issued by the ESM, measured at fair value through profit or loss and one security issued by the Italian Republic, measured at fair value through other comprehensive income, for which the Group determined that sufficient liquidity and trading existed as of that date, have been transferred from Level 2 to Level 1, according to the Group's fair value hierarchy policy. The total carrying amount of the securities transferred on 30 September 2023 was €140 million.

As at 31 December 2022, a fair value through other comprehensive income security issued by the Italian Republic and a fair value through profit or loss security issued by the ESM, for which the Group determined that sufficient liquidity and trading did not exist as of that date, ha ve been transferred from Level 1 to Level 2 according to the Group's fair value hierarchy policy. The total carrying amount of the securities transferred on 31 December 2022 was €142 million.

All transfers between levels are assumed to happen at the end of the reporting period.

Level 3 financial instruments

Level 3 financial instruments on 30 September 2023 and 31 December 2022 include:

(a) Derivative products, which are valued using valuation techniques with significant unobservable inputs, including certain correlation products, such as correlation between various interest indices. They also include derivatives for which the bilateral credit value adjustment ("BCVA") is based on significant unobservable inputs and the amount of the BCVA is significant relative to the total fair value of the derivative.
(b) Securities mandatorily measured at fair value through profit or loss, for which the models used to estimate their fair value is based on unobservable credit spreads or which are price-based and the price is obtained from the issuers of the securities. They also include loans and advances to customers mandatorily measured at fair value through profit or loss, valued using discounted cash flow valuation techniques incorporating unobservable credit spreads. Additionally, they include receivables resulting from the disposal of loan portfolios and other transactions. The main part of these receivables relates to an unconditional consideration to be received at a predetermined future date while the remaining part relates to a contingent consideration to be received based on the achievement of predetermined collection targets. The valuation of the contingent consideration incorporates a range of unobservable inputs hence the Group assesses the whole receivable to be classified in the lowest level of the fair value hierarchy.
(c) Equity securities at fair value through other comprehensive income and at fair value through profit or loss, which are not traded in active markets and their fair value is estimated using an income or market approach, for which the main inputs used are not market observable.

The table below presents the movement of all Level 3 fair value measurements for the period ended 30 September 2023 and the year ended 31 December 2022, including realized and unrealized gains/(losses) included in the "Income Statement" and "Statement of Other Comprehensive Income".

Transfers into or out of Level 3

The Group conducts a review of the fair value hierarchy classifications on a quarterly basis.

For the nine-month period ended 30 September 2023 and the year ended 31 December 2022, transfers from Level 2 into Level 3 include derivative financial instruments for which the BCVA is significant to the base fair value of the respective instruments. Transfers from Level 3 into Level 2 include derivative financial instruments for which the BCVA is no longer significant to the base fair value of the respective instruments.

Movement of Level 3 financial instruments

	2023
Group	Net derivative financial instruments	Investment securities at FVTOCI	Mandatorily at FVTPL
Balance at 1 January	(37)	51	512
Gain/(loss) included in Income Statement	3	-	(83)
Purchases/Additions	-	2	10
Settlements	-	-	(3)
Transfer into/(out of) level 3	42	-	-
Balance at 30 September	8	53	436

	2022
Group	Net derivative financial instruments	Investment securities at FVTOCI	Mandatorily at FVTPL
Balance at 1 January	28	26	354
Gain/(loss) included in Income Statement	(77)	-	16
Gain/(loss) included in OCI	-	1	-
Purchases/Additions	-	27	198
Sales	-	(3)	-
Settlements	-	-	(56)
Transfer into/(out of) level 3	12	-	-
Balance at 31 December	(37)	51	512

For the period ended 30 September 2023, changes in unrealised gains/(losses) included in the income statement of financial instruments, measured at fair value using significant unobservable inputs (Level 3), relate to financial assets mandatorily measured at fair value through profit or loss, amounting to €(83) million for the Group (31 December 2022: €3 million), as well as to net derivative financial instruments amounting to €(6) million for the Group (31 December 2022: €(25) million).

Valuation Process and Control Framework

The Group has various processes in place to ensure that the fair values of its assets and liabilities are reasonably estimated and has established a control framework which is designed to ensure that fair values are validated by functions independent of the risk-taker. To that end, the Group utilizes various sources for determining the fair values of its financial instruments and uses its own independent functions to validate these results, where possible.

Fair values of debt securities are determined either by reference to prices for traded instruments in active markets, to external quotations or widely accepted financial models, which are based on market observable or unobservable information where the former is not available, as well as relevant market-based parameters such as interest rates, option volatilities, currency rates, etc.

The Group may, sometimes, also utilize third-party pricing information, and perform validating procedures on this information to the extent possible or base its fair value on the latest transaction prices available, given the absence of an active market or similar transactions or other market observable inputs. All such instruments are categorized within the lowest level of fair value hierarchy (i.e. Level 3).

Generally, fair values of debt securities, including significant inputs on the valuation models are independently checked and validated by the Middle Office and Risk Management Function on a systematic basis.

Fair values of derivatives are determined by Management using valuation models which include discounted cash-flow models, option pricing models or other appropriate models. Adequate control procedures are in place for the validation of these models, including the valuation inputs, on a systematic basis. Middle Office and Risk Management functions provide the control valuation framework necessary to ensur e that the fair values are reasonably determined, reflecting current market circumstances and economic conditions. Furthermore, over-the-counter derivatives are also compared on a daily basis with counterparties' valuations, under the daily collateral management process.

Market Valuation Adjustments

Counterparty credit risk-adjustments are applied to all over-the-counter derivatives. Own credit-risk adjustments are applied to reflect the Group's own credit risk when valuing derivatives. Bilateral credit-risk adjustments consider the expected cash flows between the Group and its counterparties under the relevant terms of the derivative instruments and the effect of the credit-risk profile of the counterparties on the valuation of these cash flows. Where appropriate, the Group takes into consideration the credit-risk mitigating arrangements, including collateral agreements and master netting arrangements, for the purpose of estimating own and counterparty credit risk valuation adjustments.

Financial Instrument	Fair Value Valuation Technique Significant Unobservable Input			Range of Inputs
		Low	High
Investment securities mandatorily at fair value through profit or loss	22	Income and market approach	Price	n/a1	n/a1
Interest Rate Derivatives	9	Discounted Cash Flows, Internal Model (for CVA/DVA)	Credit Spread	306 bps	306 bps
	(1)	Discounted Cash Flows	Constant Maturity Swap correlation between different tenors	72.80%	100.00%
Other Derivatives	(1)	Discounted Cash Flows, Internal Model (for CVA/DVA)	Credit Spread	246 bps	306 bps
Investment Securities at fair value through other comprehensive income	53	Income and market approach	n/a1	n/a1	n/a1
Loans and advances to customers mandatorily at fair value through profit or loss	18	Discounted Cash Flows	Credit Spread	260 bps	260 bps
	395	Discounted Cash Flows	Credit Spread	n/a2	n/a2

Quantitative Information about Level 3 Fair Value Measurements | 30 September 2023

¹Equity securities at FVTPL and at FVTOCI include equity securities which are not traded in active markets. In the absence of an active market the fair value of these securities is estimated using a market or an income valuation approach. Given the bespoke nature of the valuation method in respect of each holding, it is not practicable to quote a range of unobservable inputs.

²The valuation of the contingent part of the receivables from the loan portfolio sales and other transactions, has been perfor med using a discounted cash flow methodology under the income approach and includes a wide range of unobservable inputs, for which is not practicable to quote a relevant range of unobservable inputs, for disclosure purposes.

Financial Instrument	Fair Value	Valuation Technique	Significant Unobservable Input	Range of Inputs
				Low	High
Investment securities mandatorily at fair value through profit or loss	13	Income and market approach	Price	n/a1	n/a1
Interest Rate Derivatives	(34)	Discounted Cash Flows, Internal Model (for CVA/DVA)	Credit Spread	237 bps	624 bps
	(3)	Discounted Cash Flows	Constant Maturity Swap correlation between different tenors	72.80%	100.00%
Investment Securities at fair value through other comprehensive income	51	Income and market approach	n/a1	n/a1	n/a1
Loans and advances to customers mandatorily at fair value through profit or loss	21	Discounted Cash Flows	Credit Spread	300 bps	300 bps
	478	Discounted Cash Flows	Credit Spread	n/a2	n/a2

Quantitative Information about Level 3 Fair Value Measurements | 31 December 2022

²The valuation of the contingent part of the receivables from the loan portfolio sales and other transactions, has been performed using a discounted cash flow methodology under the income approach and includes a wide range of unobservable inputs, for which is not practicable to quote a relevant range of unobservable inputs, for disclosure purposes.

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

For structured interest rate derivatives, a significant change in the correlation inputs (e.g. the degree of correlation between two different interest rates, or between interest rates and foreign exchange rates) would have a significant impact on the fair value of the individual instrument; however, the magnitude and the direction of the impact depends on whether the Group is long or short the exposure, among other factors. Due to the limited exposure that the Group has to these instruments, a reasonable change in the above unobservable inputs would not be significant to the Group. Additionally, interest rate derivatives include interest rate swaps for which the bilateral credit valuation adjustment is significant in comparison to their fair value. The counterparty credit-risk adjustment in these cases is mainly driven by the internal ratings of the counterparty. A reasonable change in the credit spread of these entities would result in an insignificant change in the fair value of the Group's financial instruments.

Other derivatives include derivatives for which the bilateral credit valuation adjustment is significant in comparison to their fair value. In these cases, the counterparty credit risk adjustment is mainly driven by the internal ratings of the counterparty. A reasonable change in the credit spread of these entities would result in an insignificant change in the fair value of the Group's financial instruments.

For "Loans and advances to customers mandatorily measured at fair value through profit or loss", the valuation includes a parameter which is not observable in the market, i.e., the credit spread of the customer. A reasonable change in the respective credit spreads used would not have a significant effect on their fair value for the Group.

The valuation of the contingent part of the receivables from sales of loan portfolios, mandatorily measured at fair value through profit or loss, includes a range of unobservable inputs. A reasonable change in the unobservable inputs used would not result in a significant change in the fair value of these receivables.

NOTE 22 Acquisitions, disposals and other capital transactions

Sale of Ethniki Hellenic General Insurance S.A.

On 24 March 2021, the Bank's Board of Directors approved the sale of the 90.01% out of 100.00% stake in NIC and authorized the Bank's Management to proceed with the signing of the SPA with CVC on 26 March 2021.

On 31 March 2022, the Bank lost control of NIC and proceeded with the derecognition of its assets and liabilities due to the fact that at that date all the conditions agreed between NBG and CVC were fulfilled. The consideration, less costs to sell plus the fair value of investment retained in NIC, amounted to €314 million.

	As at
	31 March 2022

Assets
Due from banks	93
Financial assets at FVTPL	25
Loans and advances to customers	16
Investment securities	3,031
Deferred tax assets	53
Insurance related assets and receivables	702
Other assets	114
Total assets	4,034

Liabilities
Debt securities in issue	175
Retirement benefit obligations	66
Insurance related liabilities	2,905
Other liabilities	573
Total liabilities	3,719

Net Assets derecognized	315

Gain on disposal of Ethniki Hellenic General Insurance S.A.

	As at
	31 March 2022

Consideration less costs to sell	288
Fair value of 9.99% investment retained in NIC	26
Net assets derecognized	(315)
Non-controlling interests	1
Cumulative exchange loss in respect of the net assets of NIC reclassified from equity to profit or loss	(4)
Cumulative gain on financial assets measured at FVTOCI in NIC reclassified from equity to profit or loss	38
Gain on disposal	34

The gain on disposal of €34 million at Group level is included in the profit/(loss) for the period from discontinued operations (see Note 11 "Assets and liabilities held for sale and discontinued operations").

Net cash inflow on disposal of Ethniki Hellenic General Insurance S.A. amounted to €142 million.

Notes to the Interim Financial Statements

Group

Sale of CAC Coral Ltd

On 16 October 2020, a sale and purchase agreement was signed with Bain Capital for the sale of a 100% stake in CAC Coral Ltd, which contains a portfolio of non-performing corporate, SME and consumer and mortgage loans.

On 15 July 2022, the transaction was concluded, after approval of the competent regulatory authorities. The consideration less costs to sell amounted to €73 million.

	As at
	15 July 2022

Assets
Due from banks	1
Loans and advances to customers	77
Total assets	78

Liabilities
Other borrowed funds	70
Other liabilities	1
Total liabilities	71

Net Assets derecognized	7

Loss on disposal of CAC Coral Ltd

	As at
	15 July 2022

Consideration less costs to sell	73
Net assets derecognized	(7)
Transfer of loan to Bain Capital	(70)
Loss on disposal	(4)

The loss on disposal of €4 million at Group level is included in the profit/(loss) for the period from discontinued operations (see Note 11 "Assets and liabilities held for sale and discontinued operations").

Net cash inflow on disposal of CAC Coral Ltd amounted to €72 million.

Spin-off of NBG's Merchant Acquiring Business and sale of 51% of NBG Pay SA's share capital to EVO Payments, Inc

On 17 December 2021 NBG announced that it has entered into a long-term strategic marketing alliance with the EVO Payments, Inc. ("EVO"), a leading global provider of payment technology integrations and acquiring solutions, to provide merchant acquiring and payment processing services.

Under the terms of the agreement, NBG and EVO will form a merchant acquiring joint venture. NBG will spin off its merchant acquiring business into a new entity called NBG Pay S.A., and EVO will acquire a 51% interest in this entity. This transaction includes a marketing alliance whereby NBG will exclusively refer customers to the joint venture, and EVO will manage the joint venture and provide its market leading card acceptance solutions through its proprietary products and processing platforms. EVO has agreed to pay €158 million for its ownership int erest in the joint venture. Under the joint venture agreement, the parties will have joint control and rights to the net assets of the joint venture.

On 23 May 2022, a wholly owned subsidiary of the Bank, under the name of NBG Pay S.A. was established. The initial paid-in share capital amounted to €125 thousand. On 7 December 2022, according to the agreement, NBG spun off its card payments acceptance business line and transferred it to NBG Pay S.A., and on 8 December 2022, following the receipt of all required regulatory approvals, NBG completed the sale of 51% of NBG Pay S.A.'s share capital to EVO for a consideration of €158 million. The fair value of the sector spun off was estimated to €308 million. This was accounted for as a loss of control of NBG Pay S.A. where NBG:

i. Derecognised the assets and liabilities of NBG Pay S.A. from the consolidated statement of financial position.
ii. Recognised the retained investment in NBG Pay S.A., at fair value at the date that control was lost.
iii. Recognised a gain associated with the loss of control attributable to the former controlling interest. (The calculation of the gain is shown below).

At Group level the gain from the transaction amounted to €294 million and was determined as follows:

Group

	Period ended
	31 December 2022
Consideration received	158
Fair value of 49% investment retained in NBG Pay S.A.	155
Costs to sell	(8)
Net assets derecognised	(11)
Gain on disposal	294

The total gain from the spin off and the Sale of 51% of the investment to EVO of €294 million at Group and Bank level was included in Net other income / (expense) (see Note 9 "Net other income / (expense)" of the 2022 Annual Financial Report).

NBG accounts for its investment in the joint venture in the Consolidated Financial Statements using the equity method.

Included in the Joint Venture investment is goodwill of €145 million.

Strategic Partnership of NBG with Epsilon Net S.A.

On 16 November 2022, the Bank announced the signing of memorandum of understanding ("MoU") with Epsilon Net S.A. ("Epsilon Net") and its main shareholder. Subsequently, on 4 May 2023, the Bank announced the signing of a binding agreement for the purchase of 7.5% of the total share capital of Epsilon Net held by the main shareholder (the "Initial Transaction"), as well as the possibility of acquiring a further 7.5% from the main shareholder three years after the completion of the Initial Transaction. Lastly, on 9 June 2023 the Bank announced the completion of the Initial Transaction for the acquisition of a minority stake in Epsilon Net at a price of €7.49/share as well as the signing of a strategic cooperation agreement.

Acquisition of Greco Yota Property Investments S.M.S.A.

On 1 August 2023 was completed, by NBG Group, the acquisition of 100% of the issued share capital of Greco Yota Property Investments S.M.S.A. which is the owner of a building at 74, Piraeus Str.

The transaction does not qualify as a business as defined in IFRS 3 Business Combination thus the acquisition was accounted for as acquisition of assets acquired and liabilities assumed.

The cost of the transaction amounted to €30 million. No goodwill arose on the transaction.

Other transactions

Establishment of Stopanska Leasing DOOEL - Skopje

On 24 February 2022, a wholly owned subsidiary of Stopanska Banka A.D. – Skopje, under the name of Stopanska Leasing DOOEL - Skopje was established. The total paid-in share capital amounted to MKD 15 million.

NOTE 23 Group companies

			Group
Subsidiaries	Country	Tax years unaudited	30.09.2023	31.12.2022
National Securities Single Member S.A.	Greece	2017-2022	100.00%	100.00%
NBG Asset Management Mutual Funds S.A.	Greece	2017-2022	100.00%	100.00%
Ethniki Leasing S.A.	Greece	2012-2022	100.00%	100.00%
NBG Property Services Single Member S.A.	Greece	2017-2022	100.00%	100.00%
Pronomiouhos Single Member S.A. Genikon Apothikon Ellados	Greece	2012-2022	100.00%	100.00%
ΚΑDΜΟS S.A.	Greece	2012-2022	100.00%	100.00%
DIONYSOS S.A.	Greece	2012-2022	99.91%	99.91%
EKTENEPOL Construction Company Single Member S.A.	Greece	2012-2022	100.00%	100.00%
Mortgage, Touristic PROTYPOS Single Member S.A.	Greece	2012-2022	100.00%	100.00%
Hellenic Touristic Constructions S.A.	Greece	2012-2022	78.34%	78.34%
Ethniki Ktimatikis Ekmetalefsis Single Member S.A.	Greece	2012-2022	100.00%	100.00%
Ethniki Factors S.A.	Greece	2017-2022	100.00%	100.00%
I-Bank Direct S.A.(1)	Greece	-	-	100.00%
Probank Leasing S.A. (2)	Greece	2012-2022	100.00%	100.00%
NBG Insurance Brokers S.A.	Greece	2017-2022	100.00%	100.00%
GRECO YOTA SINGLE MEMBER S.A(4 )	Greece	-	100.00%	-
NBG Malta Holdings Ltd(3)	Malta	2013-2022	100.00%	100.00%
NBG Malta Ltd(3)	Malta	2013-2022	100.00%	100.00%
ARC Management Two EAD (Special Purpose Entity)	Bulgaria	2017-2022	100.00%	100.00%
Bankteco E.O.O.D.	Bulgaria	2017-2022	100.00%	100.00%
NBG Leasing S.R.L.	Romania	2018-2022	100.00%	100.00%
ARC Management One SRL (Special Purpose Entity)	Romania	2013-2022	100.00%	100.00%
Stopanska Banka A.D.-Skopje	North Macedonia	2014-2022	94.64%	94.64%
Stopanska Leasing DOOEL Skopje	North Macedonia	2022	94.64%	94.64%
NBG Greek Fund Ltd	Cyprus	2021-2022	100.00%	100.00%
National Bank of Greece (Cyprus) Ltd	Cyprus	2012-2022	100.00%	100.00%
National Securities Co (Cyprus) Ltd (3)	Cyprus	-	100.00%	100.00%
NBG Management Services Ltd	Cyprus	2021-2022	100.00%	100.00%
Merbolium Limited (Special Purpose Entity)	Cyprus	2022	100.00%	100.00%
Cortelians Limited (Special Purpose Entity)	Cyprus	2022	100.00%	100.00%
Ovelicium Ltd (Special Purpose Entity)	Cyprus	2022	100.00%	100.00%
Pacolia Holdings Ltd (Special Purpose Entity)	Cyprus	2022	100.00%	100.00%
NBG Asset Management Luxemburg S.A.	Luxembourg	2017-2022	100.00%	100.00%
NBG International Ltd	U.K.	2003-2022	100.00%	100.00%
NBGI Private Equity Ltd(3)	U.K.	2003-2022	100.00%	100.00%
NBG Finance Plc	U.K.	2003-2022	100.00%	100.00%
NBG Finance (Dollar) Plc(3)	U.K.	2008-2022	100.00%	100.00%
NBG Finance (Sterling) Plc(3)	U.K.	2008-2022	100.00%	100.00%
NBG International Holdings B.V.	The Netherlands	2022	100.00%	100.00%

Notes:

(1) I-Bank Direct S.A. was liquidated on 10 March 2023.

(2) Probank Leasing S.A.has been reclassified as Non-current assets held for sale (See Note 11 "Assets and liabilities held for sale and discontinued operations").

(3) Companies under liquidation. (4) On 1 August 2023 was completed, by NBG Group, the acquisition of 100% of the issued share capital of GRECO YOTA SINGLE ME MBER S.A. which is the owner of a building at 74, Piraeus Str. The transaction does not qualify as a business as defined in IFRS 3 Business Combination thus the acquisition was accounted for as an acquisition of assets acquired and liabilities assumed. The cost of the transaction amounted to €30 million. No goodwill arose from the transaction.

The Group's equity method investments are as follows:

				Group
Name of associate	Country	Tax years unaudited	30.09.2023	31.12.2022

Social Security Funds Management S.A.	Greece	2017-2022	20.00%	20.00%
Larco S.A.	Greece	2012-2022	33.36%	33.36%
Eviop Tempo S.A.	Greece	2017-2022	21.21%	21.21%
Teiresias S.A.	Greece	2012-2022	39.93%	39.93%
Planet S.A.	Greece	2017-2022	36.99%	36.99%
Pyrrichos Real Estate S.A.	Greece	2012-2022	21.83%	21.83%
SATO S.A.	Greece	2017-2022	23.74%	23.74%
Olganos S.A.	Greece	2012-2022	33.60%	33.60%
Perigenis Business Properties S.A.	Greece	2020-2022	28.50%	28.50%
NBG Pay S.A.	Greece	2022	49.00%	49.00%

NOTE 24 Events after the reporting period

There are no events after the reporting period.

AI Terminal

National Bank of Greece S.A.

2642_10-q_2023-11-07_9f4ab676-1e4d-46da-81f3-afd710471a6d.pdf

NBG Group Interim Financial Statements for the period ended 30 September 2023

Translation from the original text in Greek

Report on Review of Interim Financial Statements

Introduction

Scope of Review

Conclusion

Statement of Financial Position as at 30 September 2023

Income Statement for the period ended 30 September 2023

Income Statement for the period ended 30 September 2023

Statement of Comprehensive Income for the period ended 30 September 2023

Cash Flow Statement for the period ended 30 September 2023

NOTE 1 General information

The Non-Executive Chairman of the Board of Directors Gikas Hardouvelis

Independent Non-Executive Members

Non-Executive Representative of the Hellenic Financial Stability Fund (Greek Law 3864/2010)

NOTE 2 Summary of significant accounting policies

2.1 Basis of preparation

2.2 Going concern

Going concern conclusion

Profitability

Liquidity

Capital adequacy

Macroeconomic developments

2.3 New and Amended Standards and Interpretations

New standards effective from 1 January 2023

Amendments to existing standards effective from 1 January 2023

Notes to the Interim Financial Statements Group

Amendments to existing standards effective after 2023

2.4 Critical judgments and estimates

Forward-looking information

Notes to the Interim Financial Statements Group

NOTE 3 Segment reporting

Retail banking

Corporate & investment banking

Trouble Assets Units ("TAU") & Specialized Asset Solutions ("SAS")

Global markets and asset management

Insurance

International banking operations

Group

Other

Breakdown by business segment

9-month period ended

Breakdown by business segment

9-month period ended

Breakdown by business segment

Commissions Income breakdown by business segment

NOTE 4 Net trading income / (loss) and results from investment securities and Gains / (losses) arising from the derecognition of financial assets measured at amortised cost

NOTE 5 Credit provisions and other impairment charges

NOTE 6 Restructuring costs

NOTE 7 Tax benefit /(expense)

NOTE 8 Earnings per share

NOTE 9 Loans and advances to customers

Loans and advances to customers at amortised cost and mandatorily measured at FVTPL | Group

Notes to the Interim Financial Statements

Notes to the Interim Financial Statements

Management adjustments in the ECL measurement of loans and advances to customers

NOTE 10 Property and equipment and Other liabilities

NOTE 11 Assets and liabilities held for sale and discontinued operations

Non-Current Assets and Disposal Groups classified as held for sale and discontinued operations

Disposal of subsidiaries

Ethniki Hellenic General Insurance S.A.

CAC Coral Ltd

Disposal of NPE portfolios

Project "Frontier II"

Project "Pronto"

Group

Project "Solar"

Project "Frontier III"

Analysis of non-current assets held for sale and liabilities associated with non-current assets held for sale

NOTE 12 Due to banks

NOTE 13 Due to customers

NOTE 14 Debt securities in issue

National Bank of Greece issues €500m Subordinated Tier II bonds with a yield of 8,0%

NOTE 15 Contingent liabilities, pledged assets and commitments

a. Legal proceedings

b. Pending tax audits

c. Credit commitments