Bank of Greece

Annual / Quarterly Financial Statement • Sep 24, 2015

B A N K O F G R E E C E E U R O S Y S T E M EIGHTY FIRST YEAR B A L A N C E S H E E T A S A T 31 D E C E M B E R 2 0 0 8

(in euro)

	31.12.2008	31.12.2007		31.12.2008	31.12.2007
A S S E T S			L I A B I L I T I E S
1. Gold and gold receivables	2.924.754.323	2.654.573.188	1. Banknotes in circulation	18.291.344.500	16.269.736.665
2. Claims on non-euro area residents denominated in foreign currency	301.602.543	439.077.917	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	7.793.859.079	7.107.978.508
2.1 Receivables from the IMF	138.800.294	82.587.355
2.2 Balances with banks and security investments,			2.1 Current accounts (covering the minimum reserve system)	4.930.859.079	6.602.978.508
external loans and other external assets	162.802.249	356.490.562	2.2 Deposit facility	2.863.000.000	5.000.000
3. Claims on euro area residents denominated in foreign currency	2.473.540.378	700.755.139	2.3 Fixed term deposits	0	500.000.000
			3. Other liabilities to euro area credit institutions
3.1 General government	265.422.923	283.313.841	denominated in euro	0	33.400.000
3.2 Other claims	2.208.117.455	417.441.298
			4. Liabilities to other euro area residents denominated in euro	1.597.505.489	1.215.526.026
4. Claims on non-euro area residents denominated in euro	830.949.273	1.002.378.668
4.1 Balances with banks, security investments and loans	830.949.273	1.002.378.668	4.1 General government 4.2 Other liabilities	1.520.711.578 76.793.911	1.159.332.273 56.193.753
4.2 Claims arising from the credit facility under ERM II	0	0
			5. Liabilities to non-euro area residents denominated in euro	803.627.501	838.556.609
5. Lending to euro area credit institutions related to
monetary policy operations denominated in euro	38.354.900.000	8.727.274.500	6. Liabilities to euro area residents denominated in foreign currency	103.335.707	81.162.206
5.1 Main refinancing operations	22.765.300.000	6.759.000.000	7. Liabilities to non-euro area residents denominated in foreign currency	78.796.254	102.325.450
5.2 Longer-term refinancing operations	15.584.000.000	1.968.274.500
5.3 Μarginal lending facility	5.600.000	0	7.1 Deposits and other liabilities	78.796.254	102.325.450
			7.2 Liabilities arising from the credit facility under ERM II	0	0
6. Other claims on euro area credit institutions denominated in euro	76.778.839	232.122.255
			8. Counterpart of special drawing rights allocated by the IMF	114.395.563	111.207.295
7. Securities of euro area residents denominated in euro	14.529.148.987	17.006.126.881	9. Intra-Eurosystem liabilities	37.833.037.850	13.195.830.237
			9.1 Liabilities related to promissory notes backing
8. General government long term debt denominated in euro	7.777.980.635	8.231.573.922	the issuance of ECB debt certificates	0	0
			9.2 Liabilities related to the allocation of euro
			banknotes within the Eurosystem (net)	2.484.729.740	2.399.261.590
9. Intra-Eurosystem claims	1.483.347.572	1.443.521.602	9.3 Net liabilities related to transactions with the ESCB (TARGET2) 9.4 Other liabilities within the Eurosystem (net)	35.348.308.110 0	10.796.568.647 0
9.1 Participating interest in the ECB	390.454.407	390.235.477
9.2 Claims equivalent to the transfer of foreign			10. Items in course of settlement	25.895.521	43.934.772
reserves to the ECB	1.046.595.328	1.046.595.328
9.3 Claims related to promissory notes backing the			11. Other liabilities	728.834.622	666.204.432
issuance of ECB debt certificates	0	0
9.4 Claims related to the allocation of euro banknotes			11.1 Accruals and income collected in advance	114.275.189	70.402.997
within the Eurosystem (net) 9.5 Net claims related to transactions with the ESCB (TARGET2)	0 0	0 0	11.2 Sundry	614.559.433	595.801.435
9.6 Other claims within the Eurosystem (net)	46.297.837	6.690.797
			12. Provisions	1.506.799.733	1.173.625.858
10. Items in course of settlement	623.195	3.352.187	13. Revaluation accounts	1.249.112.781	965.418.437
			14. Capital and reserves	793.937.752	774.815.862
11. Other assets	2.166.856.607	2.138.966.098
			14.1 Capital	111.243.362	88.994.690
11.1 Coins	44.783.716	50.594.774	14.2 Ordinary reserve	111.243.362	88.994.690
11.2 Tangible and intangible fixed assets	804.157.896	822.814.486	14.3 Extraordinary reserve	55.000.000	55.000.000
11.3 Other financial assets	29.013.836	28.863.993	14.4 Special reserve from the revaluation of land
11.4 Accruals and prepaid expenses 11.5 Sundry	713.208.538 575.692.621	710.243.489 526.449.356	and buildings 14.5 Special reserve from the acquisition (free) of fixed assets	516.175.995 275.033	541.550.688 275.794
T O T A L A S S E T S	70.920.482.352	42.579.722.357	T O T A L L I A B I L I T I E S	70.920.482.352	42.579.722.357

A S S E T S	31.12.2008	31.12.2007	L I A B I L I T I E S	31.12.2008	31.12.2007
1. Gold and gold receivables	2.924.754.323	2.654.573.188	1. Banknotes in circulation	18.291.344.500	16.269.736.665
2. Claims on non-euro area residents denominated in foreign currency	301.602.543	439.077.917	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	7.793.859.079	7.107.978.508
2.1 Receivables from the IMF	138.800.294	82.587.355
2.2 Balances with banks and security investments, external loans and other external assets	162.802.249	356.490.562	2.1 Current accounts (covering the minimum reserve system) 2.2 Deposit facility 2.3 Fixed term deposits	4.930.859.079 2.863.000.000 0	6.602.978.508 5.000.000 500.000.000
3. Claims on euro area residents denominated in foreign currency	2.473.540.378	700.755.139
3.1 General government	265.422.923	283.313.841	3. Other liabilities to euro area credit institutions denominated in euro	0	33.400.000
3.2 Other claims	2.208.117.455	417.441.298
4. Claims on non-euro area residents denominated in euro	830.949.273	1.002.378.668	4. Liabilities to other euro area residents denominated in euro	1.597.505.489	1.215.526.026
4.1 Balances with banks, security investments and loans	830.949.273	1.002.378.668	4.1 General government 4.2 Other liabilities	1.520.711.578 76.793.911	1.159.332.273 56.193.753
4.2 Claims arising from the credit facility under ERM II	0	0
5. Lending to euro area credit institutions related to			5. Liabilities to non-euro area residents denominated in euro	803.627.501	838.556.609
monetary policy operations denominated in euro	38.354.900.000	8.727.274.500	6. Liabilities to euro area residents denominated in foreign currency	103.335.707	81.162.206
5.1 Main refinancing operations	22.765.300.000	6.759.000.000	7. Liabilities to non-euro area residents denominated in foreign currency	78.796.254	102.325.450
5.2 Longer-term refinancing operations	15.584.000.000	1.968.274.500
5.3 Μarginal lending facility	5.600.000	0	7.1 Deposits and other liabilities 7.2 Liabilities arising from the credit facility under ERM II	78.796.254 0	102.325.450 0
6. Other claims on euro area credit institutions denominated in euro	76.778.839	232.122.255	8. Counterpart of special drawing rights allocated by the IMF	114.395.563	111.207.295
7. Securities of euro area residents denominated in euro	14.529.148.987	17.006.126.881	9. Intra-Eurosystem liabilities	37.833.037.850	13.195.830.237
			9.1 Liabilities related to promissory notes backing
8. General government long term debt denominated in euro	7.777.980.635	8.231.573.922	the issuance of ECB debt certificates	0	0
			9.2 Liabilities related to the allocation of euro
9. Intra-Eurosystem claims	1.483.347.572	1.443.521.602	banknotes within the Eurosystem (net) 9.3 Net liabilities related to transactions with the ESCB (TARGET2)	2.484.729.740 35.348.308.110	2.399.261.590 10.796.568.647
			9.4 Other liabilities within the Eurosystem (net)	0	0
9.1 Participating interest in the ECB 9.2 Claims equivalent to the transfer of foreign	390.454.407	390.235.477	10. Items in course of settlement	25.895.521	43.934.772
reserves to the ECB	1.046.595.328	1.046.595.328
9.3 Claims related to promissory notes backing the			11. Other liabilities	728.834.622	666.204.432
issuance of ECB debt certificates 9.4 Claims related to the allocation of euro banknotes	0	0	11.1 Accruals and income collected in advance	114.275.189	70.402.997
within the Eurosystem (net)	0	0	11.2 Sundry	614.559.433	595.801.435
9.5 Net claims related to transactions with the ESCB (TARGET2)	0	0
9.6 Other claims within the Eurosystem (net)	46.297.837	6.690.797	12. Provisions	1.506.799.733	1.173.625.858
10. Items in course of settlement	623.195	3.352.187	13. Revaluation accounts	1.249.112.781	965.418.437
			14. Capital and reserves	793.937.752	774.815.862
11. Other assets	2.166.856.607	2.138.966.098
			14.1 Capital	111.243.362	88.994.690
11.1 Coins	44.783.716	50.594.774	14.2 Ordinary reserve	111.243.362	88.994.690
11.2 Tangible and intangible fixed assets 11.3 Other financial assets	804.157.896 29.013.836	822.814.486 28.863.993	14.3 Extraordinary reserve 14.4 Special reserve from the revaluation of land	55.000.000	55.000.000
11.4 Accruals and prepaid expenses	713.208.538	710.243.489	and buildings	516.175.995	541.550.688
11.5 Sundry	575.692.621	526.449.356	14.5 Special reserve from the acquisition (free) of fixed assets	275.033	275.794
T O T A L A S S E T S	70.920.482.352	42.579.722.357	T O T A L L I A B I L I T I E S	70.920.482.352	42.579.722.357
OFF-BALANCE-SHEET ITEMS	31.12.2008	31.12.2007
1. Investments in Greek government securities relating to the management of the "Common
capital of legal persons in public law and social security funds" according to Law 2469/97	19.345.001.939	19.361.048.419
2. Investments in Greek government securities and other securities relating to the management			7. Marketable debt securities are valued at the mid-market prices of 31 December 2008, with the exception of debt securities held to maturity which are valued at amortised cost.
and custody of funds of public entities, social security funds and private agents	7.726.244.396	13.474.822.865	These latter securities, in line with the revised accounting policy applied by the ECB, are as of 31 December 2008 reclassified from "other assets" to the appropriate asset item
3. Other off-balance-sheet items TOTAL OFF-BALANCE-SHEET ITEMS	54.996.031.085 82.067.277.420	13.461.812.780 46.297.684.064	depending on the currency denomination and the origin of the issuer. Accordingly, an amount of €7.3 billion corresponding to debt securities held to maturity was transferred to asset item 7 "Securities of euro area residents denominated in euro".

1. Fixed assets are valued at cost, with the exception of land and buildings which are valued at market prices determined by independent appraisers, less depreciation. NOTES: 9. From 2005 onwards, depreciation of fixed assets and banknote production costs is calculated at a rate of 2.5% and 20% respectively, over the expected life of buildings (40 years)

2. Under Article 54A of the Bank's Statute, the financial statements of the Bank of Greece are drawn up in accordance with the accounting principles and rules established by and banknotes (5 years on average).

the European Central Bank (ECB) and applying to all the members of the European System of Central Banks (ESCB). 10. Provisions for the year 2008 include an amount of €149.5 million against counterparty risks related to the Eurosystem's monetary policy operations.

1. The Bank's key for subscription to the ECB's capital fully paid up by the 15 national central banks of the Eurosystem is 2.60674%. 11. By virtue of Cabinet Act No. 8/10 June 2008, the Bank's share capital was increased by €22,248,671.20. This amount reflects part of the surplus value arising from real estate 3. Claims/liabilities denominated in euro or foreign currency are broken down into claims on/liabilities to euro area residents and non-euro area residents. revaluation in 2004 and 2007. The share capital increase was effected by the issuance of 3,972,977 new bonus shares of a par value of €5.60 each, which were allotted to current 4. Account balances related to monetary policy operations are shown under distinct items. shareholders in a proportion of one new share for every four existing shares. The ordinary reserve was increased by the same amount, drawn from the profit for the year 2008, so as

2. Gold has been valued at the price provided by the ECB as at 31 December 2008 ( €621,542 per fine oz., compared with €568,236 as at 31 December 2007). to remain equal to the share capital, in compliance with Articles 10 and 71 of the Bank's Statute.

3. Balance sheet items denominated in foreign currency have been converted into euro using the euro foreign exchange reference rates of the ECB as at 31 December 2008. 12. Certain items of the balance sheet and the profit and loss account for the year 2007 have been reclassified to ensure comparability with the respective items of the year 2008.

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2008			DISTRIBUTION OF NET PROFIT
	2 0 0 8	2 0 0 7	(Article 71 of the Statute)

2 0 0 8 2 0 0 7 (Article 71 of the Statute)

2. Net result of financial operations, write-downs				(in euro)
and risk provisions	36.999.655	104.237.125	Dividend €0.67 per share on 19,864,886 shares	13.309.473	10.647.579
Realised gains arising from financial operations	36.999.655	119.570.378	Ordinary reserve	22.248.672	-
Write-downs on financial assets and positions	-11.923.222	-43.333.253	Extraordinary reserve	-	36.000.000
Transfer from provisions for foreign exchange rate			Additional dividend €1.73 per share on 19,864,886 shares*	34.366.253	40.206.530
and price risks	11.923.222	28.000.000	Tax payment on dividends (Law 3296/2004, Article 6)	15.891.909	16.951.370
			To the Government	139.267.934	180.878.382

			(in euro)
	1. Net interest income	706.174.175	540.872.459
1.1	Interest income	1.656.126.765	1.195.032.737
1.2	Interest expense	-949.952.590	-654.160.278
					2 0 0 8	2 0 0 7
	2. Net result of financial operations, write-downs					(in euro)
	and risk provisions	36.999.655	104.237.125	Dividend €0.67 per share on 19,864,886 shares	13.309.473	10.647.579
2.1	Realised gains arising from financial operations	36.999.655	119.570.378	Ordinary reserve	22.248.672	-
2.2	Write-downs on financial assets and positions	-11.923.222	-43.333.253	Extraordinary reserve	-	36.000.000
2.3	Transfer from provisions for foreign exchange rate			Additional dividend €1.73 per share on 19,864,886 shares*	34.366.253	40.206.530
	and price risks	11.923.222	28.000.000	Tax payment on dividends (Law 3296/2004, Article 6)	15.891.909	16.951.370
				To the Government	139.267.934	180.878.382
	3. Net income from fees and commissions	144.003.938	131.739.075		225.084.241	284.683.861
3.1	Fees and commissions income	145.510.199	132.948.968
3.2	Fees and commissions expense	-1.506.261	-1.209.893
	4. Income from equity shares and participating interests	38.150.051	3.383.702
				* The total dividend for the financial year 2008 amounts to €2.40 per share, compared with €2.56 per
5. Net result of pooling of monetary income		-134.653.569	6.690.797	share (adjusted to the new number of shares) in 2007.
	6. Other income	32.872.186	38.574.547	Dividends are subject to withholding tax of 10%, in accordance with article 18 of Law 3697/2008.
	Total net income	823.546.436	825.497.705	Athens, 11 March 2009
		-311.187.990	-291.754.246
7. Staff costs and pensions				THE GOVERNOR		THE DIRECTOR OF THE ACCOUNTS DEPARTMENT
8. Administrative and other expenses		-47.320.801	-58.143.853
				GEORGE A. PROVOPOULOS		DIMITRIOS E. MATSIMANIS
	9. Depreciation of tangible and intangible fixed assets	-42.567.026	-42.786.390
10. Provisions		-197.386.378	-148.129.355
	Total expenses	-598.462.195	-540.813.844
	Profit for the year	225.084.241	284.683.861

THE GOVERNOR THE DIRECTOR OF THE ACCOUNTS DEPARTMENT GEORGE A. PROVOPOULOS DIMITRIOS E. MATSIMANIS

NOTE:

Item 5 "Net result of pooling of monetary income" includes an amount of €149,522,606 regarding the establishment of the provision against counterparty risks in the Eurosystem's monetary policy operations.

This is a translation from the original "INDEPENDENT AUDITOR'S REPORT" issued in Greek Language

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of the BANK OF GREECE S.A.

Report on the Financial Statements

We have audited the accompanying financial statements of the BANK OF GREECE S.A. ('the Bank'), which comprise the balance sheet as at December 31, 2008, the income statement, and the statement of profit distribution for the period then ended. Management's Responsibility for the Financial Statements: Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting principles prescribed by the European Central Bank (ECB) as adopted by the Bank in article 54A of its Articles of Incorporation and the Accounting Standards prescribed by Greek legislation. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility: Our responsibility is to express an opinion on these financial statements based on our audit. Except as in the paragraph below, we conducted our audit in accordance with the Greek Auditing Standards, which are on International Standards of Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

The balance sheet caption "Provisions" includes provision for pensions, other liabilities to employee funds and other general risks amounting to €1,188 million as at December 31, 2008 (December 31, 2007: € 1.003 million) which are not supported by an analysis of its method of calculation and, consequently, we are unable to satisfy ourselves as to the reasonableness of such provision.

Opinion: In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to the provisions referred to above, the aforementioned financial statements present fairly, in all material respects, the financial position of the BANK OF GREECE S.A. as of December 31, 2008, and of its financial performance for the year then ended in accordance with the accounting principles prescribed by the European Central Bank as adopted by the Bank in article 54A of its Articles of Incorporation and the Accounting Standards prescribed by Greek legislation.

Report on Other Legal Requirements: We confirm that the information given in the General Council Report is consistent with the accompanying financial statements.

Athens, 11 March 2009

The Certified Auditors - Accountants

Christos Glavanis Despina Xenaki Ernst & Young (Hellas) S.A. (Registration no 10 371) (Registration no 14 161) Certified Auditors Accountants 11ο klm National Road Athens Lamia (Registration no 107) 144 51 Metamorphosi Attiki