Patria Bank S.A.

Earnings Release • Mar 14, 2018

THE ROAD AHEAD

Moving forward towards profitable growth

Investors' Presentation March, 2018

1. Executive Summary

Developments in 2017

Completion of merger	• Despite a 4 month delay, the merger between BCC & PBK was completed in May 2017
Completion of network optimization	• PBK now has 85 branches, spread optimally at national level, after an optimization process aimed to eliminate the significant overlaps and to match the strategy
Completion of restructuring process	• A major cost cutting program has been in place during 2017, reducing OPEX by 29% compared to 2016 (consolidated for both banks), while achieving operational results in line with budget; further cost containment measures are in place in 2018 until reaching breakeven
Roll-out of the commercial model	• In the last months of 2017, when the commercial model was fully deployed, PBK reached EUR 20 million per month in new loans • EUR 150 million in new loans in 2017, in spite of also running a bank-wide restructuring process
Completion of rebranding	• All 85 branches are now fully rebranded, with Patria Bank now being promoted at national scale through a reinvigorated marketing strategy
Clean-up of BCC legacy	• Legacy of BCC is undergoing a bank-wide clean-up process that aims to improve the balance sheet structure; certain delays in this clean-up process have impacted 2017 profitability

2. Evolution to date

Patria bank formed as a result of successful integration of three financial institutions in three years (2015-2017)

Patria Group is currently comprised of Patria Bank, Patria Asset Management and Patria Credit, serving over 184,000 clients

• 85 rebranded branches covering the entire country
• Targeting 2nd tier cities and communities, currently serving over 180,000 customers

• Key products offered include deposits as well as lending products including mortgages and consumer loans (retail) as well as working capital and investment loans

• Asset Manager with EUR 22.8 million in total assets, and ~2,000 clients

• Manages 3 open-ended investment funds, with top-rank returns vs. market competitors, comprising:
• o Carpatica Obligatiuni, bonds (EUR 18m in NAV, 2.04% LTM return)
• o Carpatica Global, stocks and bonds (EUR 2.7m in NAV, 7.28% LTM return)
• o Carpatica Stock, stocks (EUR 1.8m in NAV, 17.14% LTM return)

• Uses PBK's network as distribution channel

• Microfinance NBFI specialized in small agro-producers and small rural business financing

• EUR 11 million in total assets and over 2,700 active customers
• Boasts a specialized sales force with a long lasting presence on rural markets
• Processes and products designed and tested for small rural areas

2017: integration of BCC has been successfully completed after running in parallel both a cost cutting program and business development in PBK

Costs and staff figures of the merged bank higher vs. BCC by <3%

Total of EUR 18M cost reductions achieved

• 2016: cost cutting program in BCC started in July 2016 and continued in H1 2017
• 2017: merger synergies kicked in gradually by the end of the year, with restructuring ended in September 2017, as planned
• Branch optimization finalized in September 2017 as well
• The restructuring and integration process went better than expected, with OPEX being 0.33% less than budgeted in 2017
• 2018 is considered to be the first normalized OPEX year, considering it excludes one-off costs and includes the full year effect of restructuring and cost cutting programs

18 million in total costs optimization, resulting in a cost reduction of 29% compared to consolidated OPEX of PBK and BCC in 2016

PBK's business model is focused on tier 2 cities and unbanked areas, with loans generating a Net Interest Margin of 7.5% (2017)

Client split

• 85 modern nationwide branch network
• Outstanding Loans split*

Strong focus on digitalization – foundation for PBK's business model

• New Mobile Banking in 2018

• New platform for Internet Banking is currently under

development, with rollout planned for 2018

• 95% of data center infrastructure has been upgraded during 2016 - 2017
• Enhanced processing power, data storage capabilities and improved security processes
• SIEM -security incident management platform: installed, customization in progress
• Digital office embedding biometric signature and OCR
• Assisted Internet bank for transactions (enhancing financial inclusions) – live since Oct'17
• Platform for Distributed Sales Agents launched Feb'18
• Broker platform for Retail planned for launch in 2018
• M-POS for mobile sales force and partners rollout in 2018

PBK's balance sheet has gaps vs. the banking sector, mainly due to the large share of liquid assets maintained for strategic reasons

PBK balance sheet structure

• The relative large share of liquid assets is maintained for a strategic reason, i.e. potential acquisitions in a consolidating market
• This in turn is the main driver behind PBK's 41% Loan-to-Deposit ratio, virtually half of the banking sector's 81%
• In the short term and recent history this implied a significant toll on the P&L; yet 2 important trends – growth of market rates and increased lending – are expected to correct this in the medium term

2017 figures unaudited. Source: NBR, Patria Bank;

While high liquidity has been maintained for strategic reasons, loans have not grown at full potential yet

PBK assets structure [EUR M] – Total Assets EUR 771 M @31.Dec.2017

Liquid Assets	402	• High excess liquidity (EUR 175 million as of December 2017) been invested in T-Bills with low duration	has been a key element in PBK's recent evolution; it has
Equity Investments	6		Loans as of Dec '17
Loans and advances to customers, net	285	• The loan portfolio has not fully grown at its potential (+10.5% yoy), considering that 2017 was a year in which the organic growth process ran simultaneously with the integration and restructuring of BCC	Corporate 19%	Micro & Agro 28%
Other assets	79	• Further BCC Legacy – NPE ratio of 17.91% as of December 31, 2017	SME 26%	Retail 27%
	Assets

Deposits remain at stable levels and competitive costs, with the now fully developed PBK branch network serving a national clientele

PBK equity and liabilities structure [EUR M] @31.Dec.2017

• Unrealized NBI has been at EUR 1.7 million, largely due to the non-completion of

• A share of that unrealized income has been compensated by achieving Budgeted

OPEX, in the context of a number of costs un-budgeted in connection with potential

the acquisition of a performing EUR 100 million portfolio

acquisitions

CoR over budget, with gains postponed for '18 [EUR '000]

• CoR COR has been higher than expected due to delays in workout transactions, budgeted to occur by the end of 2017
• Given the complexity of legal procedures, we expect part of the positive impacts to occur in 2018

*CoR in the waterfall includes other provisions as well (litigation, credit commitments) NII = Net interest income; NBI = Net banking income; 2017 figures unaudited NFCI = Net fees and commissions income CoR = Cost of Risk; PBT = Profit before tax

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Strong and experienced board and management team with successful M&A track record

3. Patria Bank's future

The Romanian market is the most underpenetrated and fragmented in Europe, with a market need that is fundamental to PBK's strategy

139% 63% 59% 55% 33% 28% EU CZ BG PL HU RO Non-government loans [% of GDP]

Lowest credit penetration (2017) Relatively fragmented

Having gone through long deleveraging Highest share of unbanked population

Strategic approach to growth perspectives

ORGANIC GROWTH

• Classic model -> 85 full bank branches spread nationally
• 3 rd party distribution model by means of alternative distribution channels and partnerships

ACQUISITION OPPORTUNITIES

New loan generation/ annum set to grow by a CAGR of 32% by 2020, with SME taking the lead

New loan generation capacity per year [EUR M] • Loan generation capacity has increased

• in parallel with sales efficiency improvements; distribution assumed maintaining the 85 branch network and further expansion of alternative channels
• Marketing efforts have been restarted, which are expected to further boost new loans as PBK's brand is consolidated
• Last but not least, the market conditions and the segments targeted by PBK's strategy allow for a forecast implying a 32% CAGR of new generated loans by 2020

Strategic objectives for 3 year horizon: 28% CAGR for net loans by 2020, reaching EUR 600 million and EUR 1 billion in total assets

K ey Rat ios	2017	2018	2019	2020
	Ac t uals	Forec ast	Forec ast	Forec ast
ROA	-1.19%	0.09%	0.55%	1.02%
ROE	-18.56%	1.31%	6.68%	11.95%

Cost/ Income 115% 91% 75% 64%

Net loans and total assets evolution [EUR '000]

• Total assets are expected to reach EUR 1 B by 2020, on an optimized structure of Balance Sheet
• Net loans are budgeted to grow by a CAGR of 28% by 2020, reaching EUR 600 million, on the back of successfully deploying the commercial model into the targeted market segments and increased marketing efforts
• A capital increase of EUR 27 m, as already communicated in 2017, to be raised as Tier 1 and Tier 2, has been assumed in 2018 to support the growth and development plans and to ensure compliance with increased capital requirements across the industry
• 2018 is marked as the year PBK reaches profitability, implying positive ROE and ROA

The Merged Bank will break-even in 2018 and grow profitable until fully deploying excess liquidity

• The Bank plans to reach break-even and become marginally profitable in FY'2018;
• C/I shall continue to improve and operating costs are stabilized, and a C/I below 100%, considering the kick-in of a normalized OPEX (after a year with significant one offs)
• Profitability gains momentum as the NBI gains size due to balance sheet optimization
• CoR is expected to be maintained within industry standards
• Recoveries from BCC legacy is assumed in 2018

Share Capital Increase in 2018

Total EUR 31 M Capital Increase in 2018, out of which EUR 27 m new money in 2018, as follows:

• EUR 13 M under the on-going share capital increase process, expected to end of May 2018, of out which EUR 8.65 M is expected to be new money (the amount of EUR 4.35 is old subordinated loan from majority shareholder expected to be converted)
• EUR 18 M as new money to be raised partially in Jun-2018 and partially in Sep-2018 as Tier 1 and Tier 2 capital

1. What is the level of solvency?

• As of 31 Dec. 2017 the Tier 1 own funds (CET1) ratio is 9.85% and the total own funds are approx. 11%

• At the end of 2018, following the expected capitalization plans, the forecasted level of total own funds will be 17%

• What will be the impact of IFRS9 over the Financial Statements on 31 Dec. 2017?

• In the Audited Financial Statements as of 31 Dec. 2017 there will be a disclosure about the impact of IFRS9

• We expect this impact not to be significant
• The prudential filter will be excluded from the calculation of total own funds

3. Is the T-bills portfolio in Lei or EUR?

• The T-bills portfolio is predominantly in Lei

4. The targeted Total Asset of 1 billion EUR does include the expected acquisitions?

• No, just the organic growth of the bank
• Also, the targeted budget is based only on organic growth, sustained by growth rates based on the evolutions over the past 3 years

Contact details

PATRIA BANK SA

Social Headquarters: 31 Ion Brezoianu Actor, floors 1, 2 and attic, sector 1, Bucharest Real Headquarters: 42 Pipera Road, Globalworth Plaza Building, floors 7, 8 and 10, sector 2, Bucharest

Investor Relations and Financial Institutions Dept. Phone: 0372538725 Email: capital@patriabank.ro