Bank of Greece

Annual / Quarterly Financial Statement • Jan 18, 2016

	31.12.2015	31.12.2014		31.12.2015	31.12.2014
A S S E T S			L I A B I L I T I E S
1. Gold and gold receivables	4,655,876,333	4,720,522,384	1. Banknotes in circulation	28,792,125,675	27,172,060,740
2. Claims on non-euro area residents denominated in foreign currency	2,046,275,257	1,570,953,046	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	1,387,143,530	3,076,270,299
Receivables from the International Monetary Fund (IMF) Balances with banks and security investments,	635,957,699	947,944,540	2.1 Current accounts (covering the minimum reserve system)	1,258,943,530	2,926,270,299
external loans and other external assets	1,410,317,558	623,008,506	2.2 Deposit facility 2.3 Fixed-term deposits	0 0	150,000,000 0
3. Claims on euro area residents denominated in foreign currency	613,387,274	599,521,200	2.4 Fine-tuning reverse operations 2.5 Deposits related to margin calls	0 128,200,000	0 0
General government	306,522,843	288,310,529
Other claims	306,864,431	311,210,671	3. Other liabilities to euro area credit institutions denominated in euro	0	0
4. Claims on non-euro area residents denominated in euro	23,881	23,881
			4. Liabilities to other euro area residents denominated in euro	5,085,184,765	4,377,583,848
Balances with banks, security investments and loans	23,881	23,881
Claims arising from the credit facility under ERM II	0	0	4.1 General government	3,749,122,957	3,520,526,264
			4.2 Other liabilities	1,336,061,808	857,057,584
monetary policy operations denominated in euro	38,599,000,000	56,039,400,000	5. Liabilities to non-euro area residents denominated in euro	1,227,986,892	1,438,395,120
Main refinancing operations	26,570,000,000	47,149,400,000	6. Liabilities to euro area residents denominated in foreign currency	646,431,879	302,447,427
Longer-term refinancing operations	12,000,000,000	8,890,000,000
Fine-tuning reverse operations	0	0	7. Liabilities to non-euro area residents denominated in foreign currency	2,666	2,391
Structural reverse operations	0	0
Marginal lending facility	29,000,000	0	7.1 Deposits and other liabilities	2,666	2,391
Credits related to margin calls	0	0	7.2 Liabilities arising from the credit facility under ERM II	0	0
6. Other claims on euro area credit institutions denominated in euro	68,914,635,432	1,095,137	8. Counterpart of special drawing rights allocated by the IMF	0	932,888,415
7. Securities of euro area residents denominated in euro	39,764,480,573	31,056,804,080	9. Intra-Eurosystem liabilities	113,977,496,400	54,502,387,704
Securities held for monetary policy purposes	20,711,295,716	5,786,493,862	9.1 Liabilities related to promissory notes backing
Other securities of euro area residents denominated in euro	19,053,184,857	25,270,310,218	the issuance of ECB debt certificates	0	0
			9.2 Net liabilities related to the allocation of euro
8. General government long-term debt denominated in euro	4,843,627,573	5,249,170,866	banknotes within the Eurosystem	19,590,587,680	5,183,480,790
			9.3 Net liabilities arising from balances of TARGET2 accounts	94,386,908,720	49,318,906,914
9. Intra-Eurosystem claims	1,781,727,954	1,773,729,971	9.4 Other liabilities within the Eurosystem (net)	0	0
Participating interest in the ECB	564,765,496	564,765,496	10. Items in course of settlement	955,123	2,558,265
Claims equivalent to the transfer of foreign
reserves to the ECB	1,178,260,606	1,178,260,606	11. Other liabilities	1,310,063,399	706,238,137
Net claims related to the allocation of euro banknotes
within the Eurosystem	0	0	11.1 Off-balance-sheet instruments revaluation differences	17,549,614	523,582
Net claims arising from balances of TARGET2 accounts	0	0	11.2 Accruals and income collected in advance	16,430,532	14,007,249
Other claims within the Eurosystem (net)	38,701,852	30,703,869	11.3 Sundry	1,276,083,253	691,707,306
10. Items in course of settlement	0	0	12. Provisions	7,198,507,643	6,788,684,202
11. Other assets	2,294,067,038	2,146,353,296	13. Revaluation accounts	3,071,705,530	3,042,557,641
11.1 Coins of euro area	58,024,469	56,067,754	14. Capital and reserves	815,497,813	815,499,672
11.2 Tangible and intangible fixed assets	801,561,779	809,329,992
11.3 Other financial assets	93,405,313	91,609,288	14.1 Capital	111,243,362	111,243,362
11.4 Off-balance-sheet instruments revaluation differences	82,318	229,653	14.2 Ordinary reserve	111,243,362	111,243,362
11.5 Accruals and prepaid expenses 11.6 Sundry	743,311,071 597,682,088	614,144,364 574,972,245	14.3 Extraordinary reserve 14.4 Special reserve from the revaluation of land	84,500,000	84,500,000
			and buildings	507,247,856	507,247,856
			14.5 Other special reserves	1,263,233	1,265,092
T O T A L A S S E T S	163,513,101,315	103,157,573,861	T O T A L L I A B I L I T I E S	163,513,101,315	103,157,573,861

	A S S E T S	31.12.2015	31.12.2014	L I A B I L I T I E S	31.12.2015	31.12.2014
	1. Gold and gold receivables	4,655,876,333	4,720,522,384	1. Banknotes in circulation	28,792,125,675	27,172,060,740
	2. Claims on non-euro area residents denominated in foreign currency	2,046,275,257	1,570,953,046	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	1,387,143,530	3,076,270,299
	2.1 Receivables from the International Monetary Fund (IMF)	635,957,699	947,944,540
	2.2 Balances with banks and security investments, external loans and other external assets	1,410,317,558	623,008,506	2.1 Current accounts (covering the minimum reserve system) 2.2 Deposit facility	1,258,943,530 0	2,926,270,299 150,000,000
				2.3 Fixed-term deposits	0	0
	3. Claims on euro area residents denominated in foreign currency	613,387,274	599,521,200	2.4 Fine-tuning reverse operations 2.5 Deposits related to margin calls	0 128,200,000	0 0
	3.1 General government 3.2 Other claims	306,522,843 306,864,431	288,310,529 311,210,671	3. Other liabilities to euro area credit institutions
	4. Claims on non-euro area residents denominated in euro	23,881	23,881	denominated in euro	0	0
	4.1 Balances with banks, security investments and loans	23,881	23,881	4. Liabilities to other euro area residents denominated in euro	5,085,184,765	4,377,583,848
	4.2 Claims arising from the credit facility under ERM II	0	0	4.1 General government 4.2 Other liabilities	3,749,122,957 1,336,061,808	3,520,526,264 857,057,584
	5. Lending to euro area credit institutions related to monetary policy operations denominated in euro	38,599,000,000	56,039,400,000	5. Liabilities to non-euro area residents denominated in euro	1,227,986,892	1,438,395,120
	5.1 Main refinancing operations	26,570,000,000	47,149,400,000	6. Liabilities to euro area residents denominated in foreign currency	646,431,879	302,447,427
	5.2 Longer-term refinancing operations 5.3 Fine-tuning reverse operations	12,000,000,000 0	8,890,000,000 0	7. Liabilities to non-euro area residents denominated in foreign currency	2,666	2,391
	5.4 Structural reverse operations	0	0
	5.5 Marginal lending facility 5.6 Credits related to margin calls	29,000,000 0	0 0	7.1 Deposits and other liabilities 7.2 Liabilities arising from the credit facility under ERM II	2,666 0	2,391 0
	6. Other claims on euro area credit institutions denominated in euro	68,914,635,432	1,095,137	8. Counterpart of special drawing rights allocated by the IMF	0	932,888,415
	7. Securities of euro area residents denominated in euro	39,764,480,573	31,056,804,080	9. Intra-Eurosystem liabilities	113,977,496,400	54,502,387,704
	7.1 Securities held for monetary policy purposes 7.2 Other securities of euro area residents denominated in euro	20,711,295,716 19,053,184,857	5,786,493,862 25,270,310,218	9.1 Liabilities related to promissory notes backing the issuance of ECB debt certificates	0	0
				9.2 Net liabilities related to the allocation of euro
	8. General government long-term debt denominated in euro	4,843,627,573	5,249,170,866	banknotes within the Eurosystem 9.3 Net liabilities arising from balances of TARGET2 accounts	19,590,587,680 94,386,908,720	5,183,480,790 49,318,906,914
	9. Intra-Eurosystem claims	1,781,727,954	1,773,729,971	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	564,765,496	564,765,496	10. Items in course of settlement	955,123	2,558,265
	reserves to the ECB 9.3 Net claims related to the allocation of euro banknotes	1,178,260,606	1,178,260,606	11. Other liabilities	1,310,063,399	706,238,137
	within the Eurosystem	0	0	11.1 Off-balance-sheet instruments revaluation differences	17,549,614	523,582
	9.4 Net claims arising from balances of TARGET2 accounts	0	0	11.2 Accruals and income collected in advance	16,430,532	14,007,249
	9.5 Other claims within the Eurosystem (net)	38,701,852	30,703,869	11.3 Sundry	1,276,083,253	691,707,306
	10. Items in course of settlement	0	0	12. Provisions	7,198,507,643	6,788,684,202
	11. Other assets	2,294,067,038	2,146,353,296	13. Revaluation accounts	3,071,705,530	3,042,557,641
	11.1 Coins of euro area 11.2 Tangible and intangible fixed assets	58,024,469 801,561,779	56,067,754 809,329,992	14. Capital and reserves	815,497,813	815,499,672
	11.3 Other financial assets	93,405,313	91,609,288	14.1 Capital	111,243,362	111,243,362
	11.4 Off-balance-sheet instruments revaluation differences	82,318	229,653	14.2 Ordinary reserve	111,243,362	111,243,362
	11.5 Accruals and prepaid expenses 11.6 Sundry	743,311,071 597,682,088	614,144,364 574,972,245	14.3 Extraordinary reserve 14.4 Special reserve from the revaluation of land	84,500,000	84,500,000
				and buildings 14.5 Other special reserves	507,247,856 1,263,233	507,247,856 1,265,092
	T O T A L A S S E T S	163,513,101,315	103,157,573,861	T O T A L L I A B I L I T I E S	163,513,101,315	103,157,573,861
	OFF-BALANCE-SHEET ITEMS	31.12.2015	31.12.2014	NOTES: 1. 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
1. Greek government securities relating to the management of the "Common capital of legal entities in public law and social security funds" according to Law 2469/97 2. Greek government securities and other debt securities relating to the management				the European Central Bank (ECB) and applying to all members of the European System of Central Banks (ESCB). 2. Gold has been valued at the price provided by the ECB as at 31 December 2015: €973.225 per fine oz, compared with €987.769 as at 31 December 2014.
		27,038,705,275	24,816,741,275	3. Claims/liabilities denominated in foreign currency have been converted to euro using the euro foreign exchange reference rates of the ECB as at 31 December 2015. 4. Securities (other than those held-to-maturity, non-marketable securities and securities held for monetary policy purposes) are valued at the mid-market prices of 31 December
	and custody of assets of public entities, social security funds and private agents	4,754,026,481	16,239,481,356	2015. Marketable securities classified as held-to-maturity, non-marketable securities and securities held for monetary policy purposes are valued at amortised cost subject
3. Assets eligible as collateral for Eurosystem monetary policy operations and intraday credit 4. Assets accepted by the Bank of Greece as eligible collateral for emergency liquidity		40,054,565,610	72,152,476,087	to impairment. In financial year 2015 no impairment losses were incurred. 5. The liability to the IMF stemming from the SDR allocations appears in the accounts of the Hellenic Republic and is recorded by the Bank of Greece in "Other off-balance-sheet
	assistance to credit institutions	149,097,004,268	22,703,376,538	items" for information purposes.
	5. Other off-balance-sheet items TOTAL OFF-BALANCE-SHEET ITEMS	21,873,166,477 242,817,468,111	27,799,898,528 163,711,973,784	6. "Other off-balance-sheet items" include the promissory note issued by the Hellenic Republic in favour of the IMF for the outstanding part of the loans received. At 31.12.2015 the value of the promissory note was SDR 12.7 billion, equivalent to €16.2 billion.
				7. Certain balance sheet items for the year 2014 have been reclassified to ensure comparability with the respective items of the year 2015.

NOTES:

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2015 2 0 1 5 2 0 1 4 (in euro) 1. Net interest income 1,725,725,824 957,672,264 1.1 Interest income 1,784,046,402 1,049,114,258 1.2 Interest expense -58,320,578 -91,441,994 2. Net result of financial operations, write-downs (in euro) and risk provisions 22,840,471 39,587,522 Dividend to be distributed: €0.47712 per share for 19,864,886 shares 9,477,934 9,878,410 2.1 Realised gains arising from financial operations 22,840,471 39,587,522 2.2 Write-downs on financial assets and positions -5,209,328 -1,740,761 Tax on dividends (tax rate 29%, Articles 47 and 58, Law 4172/2013) 3,871,269 3,470,793 2.3 Transfer from provisions for foreign exchange rate, 3. Net income from fees and commissions 89,837,658 73,515,465 3.1 Fees and commissions income 90,793,604 74,854,516 3.2 Fees and commissions expense -955,946 -1,339,051 4. Income from equity shares and participating interests 31,565,454 29,004,290 Dividend to be distributed ( €0.47712 per share) is subject to withholding tax 5. Net result of pooling of monetary income 15,265,637 6,276,926 6. Other income 12,261,807 12,134,922 Total net income 1,897,496,851 1,118,191,389 7. Staff costs and pension benefit expenses -256,804,316 -258,748,290 8. Other administrative expenses -49,656,441 -46,964,051 9. Depreciation of tangible and intangible fixed assets -13,378,128 -13,918,569 10. Consultancy fees for the auditing of the banking system -6,326,531 -13,956,549 11. Provisions -408,482,232 -130,054,727 Total expenses -734,647,648 -463,642,186 PROFIT FOR THE YEAR 1,162,849,203 654,549,203

Note: The gross dividend for financial year 2015 amounts to €0.6720 per share. at a rate of 10% in accordance with Law 4172/2013, Article 64 paragraph 1.

We have audited the accompanying financial statements of the BANK OF GREECE A.E. (the "Bank") which comprise the balance sheet as of 31 December 2015 and the statement of income, the appropriation account for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 Statute and the Greek accounting principles, where the Guideline of the ECB does not provide specific direction, as well as, for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

2 0 1 5 2 0 1 4 interest rate, credit and gold price risks 5,209,328 1,740,761 To the Government 1,149,500,000 641,200,000 1,162,849,203 654,549,203 (Article 71 of the Statute) DISTRIBUTION OF PROFIT

Auditor's Responsibility: Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on 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 Bank'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.

Opinion: In our opinion, the financial statements give a true and fair view of the financial position of the Bank of Greece as at 31 December 2015 and of its financial performance for the year then ended in accordance with the accounting principles prescribed by the ECB as adopted by the Bank in Article 54A of its Statute and the Greek accounting principles, where the Guideline of the ECB does not provide specific direction.

Report on Other Legal and Regulatory Requirements: We verified that the contents of the Report of the General Council relating to the statement of income for 2015 to the Annual Shareholders Meeting are consistent and corresponds with the accompanying financial statements within the scope set by the provisions of C.L. 2190/1920.

Nikolaos Vouniseas Ioannis Achilas Certified Auditor Accountant Certified Auditor Accountant AM SOEL 18701 AM SOEL 12831

(Translated from the original in Greek)

Independent Auditors Report

To the Shareholders of BANK OF GREECE A.E.

AM SOEL 114 KPMG Certified Auditors Α.Ε.

Report on the Financial Statements

Athens, 18 January 2016

THE GOVERNOR

YANNIS STOURNARAS

Athens, 18 January 2016

THE DIRECTOR OF THE ACCOUNTING DEPARTMENT

MARIA PAGONI

(in euro)

B A N K O F G R E E C E E U R O S Y S T E M EIGHTY EIGHTH 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 1 5