Bank of Greece

Annual / Quarterly Financial Statement • Sep 28, 2015

B A N K OF G R E E C E

SEVENTY-EIGHTH YEAR B A L A N C E S H E E T AS A T 3 1 D E C E M B E R 2 0 0 5 (in euro)

A S S E T S	2 0 0 5	2 0 0 4	L I A B I L I T I E S	2 0 0 5	2 0 0 4
1. Gold and gold receivables	1,938,504,319	1,430,827,937	1. Banknotes in circulation	13,799,748,640	12,238,189,655
2. Claims on non-euro area residents denominated in foreign currency	494,074,402	904,914,418	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	4,286,009,203	5,234,280,080
2.1 Receivables from the IMF 2.2 Balances with banks and security investments,	173,601,402	334,351,329	2.1 Current accounts (covering the minimum reserve system)	4,282,809,203	5,233,450,080
external loans and other external assets	320,473,000	570,563,089	2.2 Deposit facility	3,200,000	830,000
3. Claims on euro area residents denominated in foreign currency	951,283,800	1,382,733,073	3. Other liabilities to euro area credit institutions denominated in euro	27,565,000	0
3.1 General government 3.2 Other claims	857,695,042 93,588,758	1,224,358,075 158,374,998	4. Liabilities to other euro area residents denominated in euro	1,106,657,696	1,211,444,873
4. Claims on non-euro area residents denominated in euro	1,254,313,788	1,196,035,142	4.1 General government 4.2 Other liabilities	1,085,934,059 20,723,637	1,196,313,972 15,130,901
4.1 Balances with banks, security investments and loans	1,254,313,788	1,196,035,142
4.2 Claims arising from the credit facility under ERM II	0	0	5. Liabilities to non-euro area residents denominated in euro	863,282,339	648,506,465
5. Lending to euro area credit institutions related to monetary policy operations denominated in euro	2,354,018,096	201,368,044	6. Liabilities to euro area residents denominated in foreign currency	164,012,424	127,864,569
			7. Liabilities to non-euro area residents denominated in foreign currency	109,831,235	536,364,014
5.1 Main refinancing operations	1,561,000,000	48,000,000
5.2 Longer-term refinancing operations	793,018,096	153,368,044	7.1 Deposits and other liabilities 7.2 Liabilities arising from the credit facility under ERM II	109,831,235 0	536,364,014 0
6. Other claims on euro area credit institutions denominated in euro	1,013,525,131	771,559,153	8. Counterpart of special drawing rights allocated by the IMF	125,275,550	117,993,482
7. Securities of euro area residents denominated in euro	7,281,045,787	6,443,828,060
8. General government debt denominated in euro	8,786,178,291	9,254,374,380	9. Intra-Eurosystem liabilities	8,455,940,423	6,966,258,551
			9.1 Liabilities related to promissory notes backing
8.1 Long-term debt	1,527,126,785	1,668,806,532	the issuance of ECB debt certificates	0	0
8.2 Loans for participation in the IMF	761,114,532	726,634,375	9.2 Net liabilities related to the allocation of euro
8.3 Long-term loans and securities	6,497,936,974	6,858,933,473	banknotes within the Eurosystem	1,232,234,040	416,930,960
			9.3 Net liabilities related to transactions with the ESCB (TARGET)	7,216,770,680	6,545,889,704
9. Intra-Eurosystem claims	1,449,244,341	1,449,244,341	9.4 Other liabilities within the Eurosystem (net)	6,935,703	3,437,887
9.1 Participating interest in the ECB	393,403,998	393,403,998	10. Items in course of settlement	28,141,546	27,541,742
9.2 Claims equivalent to the transfer of foreign
reserves to the ECB	1,055,840,343	1,055,840,343	11. Other liabilities	804,083,276	973,095,264
9.3 Claims related to promissory notes backing the
issuance of ECB debt certificates	0	0	11.1 Off-balance sheet instruments revaluation differences	8,324	0
9.4 Net claims related to the allocation of euro banknotes			11.2 Accruals and income collected in advance	143,172,258	133,340,775
within the Eurosystem	0	0	11.3 Sundry	660,902,694	839,754,489
9.5 Net claims related to transactions with the ESCB (TARGET) 9.6 Other claims within the Eurosystem (net)	0 0	0 0	12. Provisions	846,722,005	821,921,817
10. Items in course of settlement	1,834,373	389,343	13. Revaluation accounts	682,695,696	123,871,662
11. Other assets	6,424,173,268	6,618,040,175	14. Capital and reserves	648,230,563	625,981,892
11.1 Coins	34,660,705	33,287,864	14.1 Capital	88,994,690	66,746,019
11.2 Tangible and intangible fixed assets	758,447,832	758,842,518	14.2 Ordinary reserve	88,994,690	66,746,019
11.3 Other financial assets	4,619,813,384	4,864,714,102	14.3 Special reserve from the revaluation of land
11.4 Accruals and prepaid expenses	576,711,439	570,467,497	and buildings under Law 3229/2004	470,018,863	492,267,534
11.5 Sundry	434,539,908	390,728,194	14.4 Special reserves	222,320	222,320

A S S E T S	2 0 0 5	2 0 0 4	L I A B I L I T I E S	2 0 0 5	2 0 0 4
1. Gold and gold receivables	1,938,504,319	1,430,827,937	1. Banknotes in circulation	13,799,748,640	12,238,189,655
2. Claims on non-euro area residents denominated in foreign currency	494,074,402	904,914,418	2. Liabilities to euro area credit institutions related to
2.1 Receivables from the IMF	173,601,402	334,351,329	monetary policy operations denominated in euro	4,286,009,203	5,234,280,080
2.2 Balances with banks and security investments, external loans and other external assets	320,473,000	570,563,089	2.1 Current accounts (covering the minimum reserve system) 2.2 Deposit facility	4,282,809,203 3,200,000	5,233,450,080 830,000
3. Claims on euro area residents denominated in foreign currency	951,283,800	1,382,733,073	3. Other liabilities to euro area credit institutions denominated in euro	27,565,000	0
3.1 General government	857,695,042	1,224,358,075
3.2 Other claims	93,588,758	158,374,998	4. Liabilities to other euro area residents denominated in euro	1,106,657,696	1,211,444,873
4. Claims on non-euro area residents denominated in euro	1,254,313,788	1,196,035,142	4.1 General government 4.2 Other liabilities	1,085,934,059 20,723,637	1,196,313,972 15,130,901
4.1 Balances with banks, security investments and loans	1,254,313,788	1,196,035,142
4.2 Claims arising from the credit facility under ERM II	0	0	5. Liabilities to non-euro area residents denominated in euro	863,282,339	648,506,465
5. Lending to euro area credit institutions related to monetary policy operations denominated in euro	2,354,018,096	201,368,044	6. Liabilities to euro area residents denominated in foreign currency	164,012,424	127,864,569
			7. Liabilities to non-euro area residents denominated in foreign currency	109,831,235	536,364,014
5.1 Main refinancing operations	1,561,000,000	48,000,000
5.2 Longer-term refinancing operations	793,018,096	153,368,044	7.1 Deposits and other liabilities	109,831,235	536,364,014
6. Other claims on euro area credit institutions denominated in euro	1,013,525,131	771,559,153	7.2 Liabilities arising from the credit facility under ERM II	0	0
7. Securities of euro area residents denominated in euro	7,281,045,787	6,443,828,060	8. Counterpart of special drawing rights allocated by the IMF	125,275,550	117,993,482
			9. Intra-Eurosystem liabilities	8,455,940,423	6,966,258,551
8. General government debt denominated in euro	8,786,178,291	9,254,374,380	9.1 Liabilities related to promissory notes backing
8.1 Long-term debt	1,527,126,785	1,668,806,532	the issuance of ECB debt certificates	0	0
8.2 Loans for participation in the IMF	761,114,532	726,634,375	9.2 Net liabilities related to the allocation of euro
8.3 Long-term loans and securities	6,497,936,974	6,858,933,473	banknotes within the Eurosystem	1,232,234,040	416,930,960
			9.3 Net liabilities related to transactions with the ESCB (TARGET)	7,216,770,680	6,545,889,704
9. Intra-Eurosystem claims	1,449,244,341	1,449,244,341	9.4 Other liabilities within the Eurosystem (net)	6,935,703	3,437,887
9.1 Participating interest in the ECB 9.2 Claims equivalent to the transfer of foreign	393,403,998	393,403,998	10. Items in course of settlement	28,141,546	27,541,742
reserves to the ECB	1,055,840,343	1,055,840,343	11. Other liabilities	804,083,276	973,095,264
9.3 Claims related to promissory notes backing the
issuance of ECB debt certificates	0	0	11.1 Off-balance sheet instruments revaluation differences	8,324	0
9.4 Net claims related to the allocation of euro banknotes			11.2 Accruals and income collected in advance	143,172,258	133,340,775
within the Eurosystem 9.5 Net claims related to transactions with the ESCB (TARGET)	0 0	0 0	11.3 Sundry	660,902,694	839,754,489
9.6 Other claims within the Eurosystem (net)	0	0	12. Provisions	846,722,005	821,921,817
10. Items in course of settlement	1,834,373	389,343	13. Revaluation accounts	682,695,696	123,871,662
11. Other assets	6,424,173,268	6,618,040,175	14. Capital and reserves	648,230,563	625,981,892
11.1 Coins	34,660,705	33,287,864	14.1 Capital	88,994,690	66,746,019
11.2 Tangible and intangible fixed assets	758,447,832	758,842,518	14.2 Ordinary reserve	88,994,690	66,746,019
11.3 Other financial assets	4,619,813,384	4,864,714,102	14.3 Special reserve from the revaluation of land
11.4 Accruals and prepaid expenses 11.5 Sundry	576,711,439 434,539,908	570,467,497 390,728,194	and buildings under Law 3229/2004 14.4 Special reserves	470,018,863 222,320	492,267,534 222,320
T O T A L A S S E T S	31,948,195,596	29,653,314,066	T O T A L L I A B I L I T I E S	31,948,195,596	29,653,314,066
OFF-BALANCE-SHEET ITEMS	2005	2004
1. Investments in Greek government securities on behalf of public entities
(legal persons in public law, social security funds in public and private law) 2. Investments in Greek government securities and other debt securities	19,105,547,134	15,218,519,470
on behalf of public entities, social security funds and private agents	10,430,655,763	8,723,342,399
3. Other off-balance-sheet items	5,256,542,624	2,606,875,223
TOTAL OFF-BALANCE-SHEET ITEMS	34,792,745,521	26,548,737,092

NOTES:

1. Under Article 54A of the Bank's Statute, the balance sheet was drawn up in compliance with the accounting rules and techniques determined by the European Central Bank 8. The depreciation of buildings and banknote production costs is calculated, as of the financial year 2005, at a rate of 2.5% and 20%, respectively, according to the estimated (ECB) and applying to the members of the European System of Central Banks (ESCB). useful life of buildings (40 years) and the lifetime of banknotes (5 years on average). The change in the depreciation rate for buildings from 5% to 2.5% had a positive effect 2. Claims/liabilities denominated in euro or foreign currency are broken down into claims on/liabilities to euro area residents and non-euro area residents. of €4.7 million on financial results, while the increase in the depreciable value of buildings (due to their revaluation at market prices) and the change in the

2. Account balances related to monetary policy operations are shown under separate items. depreciation method for banknote production costs had a negative effect of €4.9 million on financial results.

compared with €321.562 per ounce in 2004). revaluation (31 Dec. 2004), at market prices, of the Bank´s land and of the undepreciated value of the Bank´s buildings. The increase was covered by the issuance of

1. The value of gold has been calculated on the basis of the euro price of the gold ounce referred to in the ECB's exchange rate list of 30 December 2005 ( €434.856 per ounce 9. By Council of Ministers´ Act 17/4 July 2005, the Bank´s capital was increased by €22,248,671.20. This amount accounts for a part of the surplus value which arose from the 5. Claims and liabilities in foreign currency have been valued on the basis of the exchange rates referred to in the ECB's exchange rate list of 30 December 2005. 3,972,977 new shares of a nominal value of €5.60 each, which were distributed free of charge (bonus shares) to the Bank's shareholders, at a rate of one bonus share 6. The value of securities has been calculated on the basis of average prices applying on 30 December 2005, except for the securities included in asset item 11.3 "Other to three old shares. The Bank´s ordinary reserve was increased by an equal amount, drawn from the profits for the financial year 2005, so as to become equal to the capital,

financial assets", which have been valued at cost. This item monitors the investment portfolio of the Bank of Greece, which comprises Greek government securities in compliance with Articles 10 and 71 of the Bank´s Statute. and government securities issued by other euro area countries; these securities constitute fixed investment to be held by the Bank up to maturity. 10. The weighted key for subscription of the Bank of Greece to the ECB's capital fully paid by the 12 National Central Banks of the Eurosystem is 2.65405%.

1. Fixed assets are valued at cost, except land and buildings, which are valued at market prices, determined by independent appraisers, less depreciation. 11. Some items of the balance sheet and the profit and loss account for the financial year 2004 have been reclassified so as to be comparable with the corresponding items for the financial year 2005.

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2005 DISTRIBUTION OF NET PROFIT

	2 0 0 5	2 0 0 4	(Article 71 of the Statute)
	(in euro)
1 Net interest income	311,925,536	301,535,422
1.1 Interest income	683,455,834	673,598,545
1.2 Interest expense	-371,530,298	-372,063,123
2 Net result of financial operations, write-downs
and risk provisions	133,713,007	28,260,030
2.1 Realised gains/losses arising from financial operations	155,370,075	99,505,494		2 0 0 5	2 0 0 4
2.2 Write-downs on financial assets and positions	-21,657,068	-71,245,464		(in euro)
2.3 Transfer to/from provisions for foreign exchange rate			Dividend on capital, €0.67 per share on 15,891,909 shares	10,647,579	7,985,684
and price risks	0	0	To the ordinary reserve	22,248,671	0
			Additional dividend, €1.73 per share on 15,891,909 shares*	27,493,003	25,983,272
3 Net income from fees and commissions	124,906,121	141,630,119	Tax payment (Law 3296/2004, Article 6)	17,948,509	18,290,976
3.1 Fees and commissions income	125,933,049	142,465,547	To the Government	150,121,483	153,345,372
3.2 Fees and commissions expense	-1,026,928	-835,428		228,459,245	205,605,304
4 Income from equity shares and participating interests	3,476,715	2,459,420
5 Net result of pooling of monetary income	9,874,431	10,795,758	* The dividend on capital and the additional dividend for the year 2004, adjusted to take into account the new number of shares, was €2.14 per share.
6 Other income	26,903,702	113,943,220
Total net income	610,799,512	598,623,969
			Athens, 22 March 2006
7 Staff costs	-200,810,488	-191,813,880
7.1 Wages and salaries	-132,282,005	-126,350,375
7.2 Employer´s contributions and other levies	-68,528,483	-65,463,505
			THE GOVERNOR	THE DIRECTOR OF THE ACCOUNTS DEPARTMENT
8 Pensions and benefits	-49,036,451	-46,562,364
			NICHOLAS C. GARGANAS		DIMITRIOS E. MATSIMANIS
9 Administrative and other expenses	-39,460,857	-37,552,145
10 Depreciation of tangible and intangible fixed assets	-33,803,564	-34,613,846
11 Provisions	-59,228,907	-82,476,430

THE GOVERNOR THE DIRECTOR OF THE ACCOUNTS DEPARTMENT

Total expenses -382,340,267 -393,018,665

Profit for the year 228,459,245 205,605,304

AUDITORS' REPORT To the Shareholders of BANK OF GREECE AE.

We have audited the accompanying financial statements of BANK OF GREECE AE, as of and for the year ended 31 December 2005. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Greek Auditing Standards, which are based on the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, evaluating the overall financial statement presentation as well as assessing the consistency of the General Council report with the aforementioned financial statements. We believe that our audit provides a reasonable basis for our opinion. Based on our audit we noted that the recorded provision for pension and other liabilities to Employee Funds amounts to €705 million, whose adequacy we could not assess. In our opinion, except for the effect on the financial statements of the matter referred to in the preceding paragraph, the aforementioned financial statements give a true and fair view of the financial position of the Company as of 31 December 2005, and of the results of its operations, for the year then ended in accordance with the accounting principles determined by the European Central Bank as they have been adopted by the Bank in Article 54A of its Articles of Association and the Company Law 2190/1920, and the General Council Report is consistent with the aforementioned financial statements. Without qualifying our opinion we draw attention to Note 8 to the financial statements. The company´s results for the year 2005 have been affected positively by €4.7 million due to the change in depreciation rates for buildings based on their useful life and negatively by €4.9 million due to the increase of their depreciable amount (as a result of revaluation) and the change in the depreciation method of banknotes capitalized production cost now depreciated based on their useful life.

Athens, 22 March 2006

The Certified Auditors - Accountants

Nikolaos Moustakis Despina Xenaki Ernst & Young (Hellas) A.E. (Registration no 13971) (Registration no 14161) Certified Auditors Accountants 11ο klm National Road Athens Lamia (Registration no 107) 144 51 Metamorphosi Attiki