Bank of Greece

Capital/Financing Update • Sep 29, 2015

B A N K OF G R E E C E

E U R O S Y S T E M SEVENTY-NINTH 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 6 (in euro)

A S S E T S	31.12.2006	31.12.2005	L I A B I L I T I E S	31.12.2006	31.12.2005
1. Gold and gold receivables	2.210.725.255	1.938.504.319	1. Banknotes in circulation	15.338.479.600	13.799.748.640
2. Claims on non-euro area residents denominated in foreign currency	486.131.282	486.694.896	2. Liabilities to euro area credit institutions related to monetary policy operations denominated in euro	4.529.984.822	4.286.009.203
2.1 Receivables from the IMF 2.2 Balances with banks and security investments, external loans and other external assets	125.814.163 360.317.119	173.601.402 313.093.494	2.1 Current accounts (covering the minimum reserve system) 2.2 Deposit facility	4.526.984.822 3.000.000	4.282.809.203 3.200.000
3. Claims on euro area residents denominated in foreign currency	553.330.050	951.283.800	3. Other liabilities to euro area credit institutions denominated in euro	22.195.000	27.565.000
3.1 General government	302.662.973	857.695.042
3.2 Other claims	250.667.077	93.588.758	4. Liabilities to other euro area residents denominated in euro	912.830.809	1.106.657.696
4. Claims on non-euro area residents denominated in euro	649.303.017	1.252.443.482	4.1 General government	893.567.625	1.085.934.059
4.1 Balances with banks, security investments and loans	649.303.017	1.252.443.482	4.2 Other liabilities	19.263.184	20.723.637
4.2 Claims arising from the credit facility under ERM II	0	0	5. Liabilities to non-euro area residents denominated in euro	851.539.789	863.282.339
5. Lending to euro area credit institutions related to			6. Liabilities to euro area residents denominated in foreign currency	83.723.120	163.530.138
monetary policy operations denominated in euro	4.795.146.004	2.354.018.096
			7. Liabilities to non-euro area residents denominated in foreign currency	111.747.203	109.831.235
5.1 Main refinancing operations 5.2 Longer-term refinancing operations	3.083.000.000 1.712.146.004	1.561.000.000 793.018.096	7.1 Deposits and other liabilities	111.747.203	109.831.235
			7.2 Liabilities arising from the credit facility under ERM II	0	0
6. Other claims on euro area credit institutions denominated in euro	942.132.861	1.013.525.131	8. Counterpart of special drawing rights allocated by the IMF	118.206.311	125.275.550
7. Securities of euro area residents denominated in euro	6.298.382.914	7.253.276.427
			9. Intra-Eurosystem liabilities	9.752.092.960	8.455.940.423
8. General government debt denominated in euro	8.744.528.645	8.786.178.291	9.1 Liabilities related to promissory notes backing
8.1 Long-term debt	1.385.447.037	1.527.126.785	the issuance of ECB debt certificates	0	0
8.2 Loans for participation in the IMF	718.441.211	761.114.532	9.2 Net liabilities related to the allocation of euro
8.3 Long-term loans and securities	6.640.640.397	6.497.936.974	banknotes within the Eurosystem	1.568.551.555	1.232.234.040
9. Intra-Eurosystem claims	1.453.912.102	1.449.244.341	9.3 Net liabilities related to transactions with the ESCB (TARGET) 9.4 Other liabilities within the Eurosystem (net)	8.183.541.405 0	7.216.770.680 6.935.703
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	55.474.879	48.873.833
reserves to the ECB	1.055.840.343	1.055.840.343	11. Other liabilities	778.947.772	784.830.284
9.3 Claims related to promissory notes backing the
issuance of ECB debt certificates	0	0	11.1 Off-balance sheet instruments revaluation differences	0	8.324
9.4 Net claims related to the allocation of euro banknotes			11.2 Accruals and income collected in advance	170.041.389	143.172.258
within the Eurosystem	0	0	11.3 Sundry	608.906.383	641.649.702
9.5 Net claims related to transactions with the ESCB (TARGET) 9.6 Other claims within the Eurosystem (net)	0 4.667.761	0 0	12. Provisions	1.052.296.846	846.722.005
10. Items in course of settlement	2.039.130	1.834.373	13. Revaluation accounts	650.634.500	682.695.696
11. Other assets	8.789.731.911	6.462.189.449	14. Capital and reserves	667.209.560	648.230.563
11.1 Coins	41.305.892	34.660.705	14.1 Capital	88.994.690	88.994.690
11.2 Tangible and intangible fixed assets 11.3 Other financial assets	755.690.484 6.813.977.432	758.447.832 4.619.720.123	14.2 Ordinary reserve 14.3 Extraordinary reserve	88.994.690 19.000.000	88.994.690 -
11.4 Accruals and prepaid expenses	705.669.379	613.823.872	14.4 Special reserve from the revaluation of land
11.5 Sundry	473.088.724	435.536.917	and buildings under Law 3229/2004	470.018.863	470.018.863
			14.5 Special reserves	201.317	222.320
T O T A L A S S E T S	34.925.363.171	31.949.192.605	T O T A L L I A B I L I T I E S	34.925.363.171	31.949.192.605

A S S E T S	31.12.2006	31.12.2005	L I A B I L I T I E S	31.12.2006	31.12.2005
1. Gold and gold receivables	2.210.725.255	1.938.504.319	1. Banknotes in circulation	15.338.479.600	13.799.748.640
2. Claims on non-euro area residents denominated in foreign currency	486.131.282	486.694.896	2. Liabilities to euro area credit institutions related to
2.1 Receivables from the IMF	125.814.163	173.601.402	monetary policy operations denominated in euro	4.529.984.822	4.286.009.203
2.2 Balances with banks and security investments, external loans and other external assets	360.317.119	313.093.494	2.1 Current accounts (covering the minimum reserve system) 2.2 Deposit facility	4.526.984.822 3.000.000	4.282.809.203 3.200.000
3. Claims on euro area residents denominated in foreign currency	553.330.050	951.283.800	3. Other liabilities to euro area credit institutions denominated in euro	22.195.000	27.565.000
3.1 General government 3.2 Other claims	302.662.973 250.667.077	857.695.042 93.588.758	4. Liabilities to other euro area residents denominated in euro	912.830.809	1.106.657.696
4. Claims on non-euro area residents denominated in euro	649.303.017	1.252.443.482	4.1 General government	893.567.625	1.085.934.059
4.1 Balances with banks, security investments and loans 4.2 Claims arising from the credit facility under ERM II	649.303.017 0	1.252.443.482 0	4.2 Other liabilities 5. Liabilities to non-euro area residents denominated in euro	19.263.184 851.539.789	20.723.637 863.282.339
5. Lending to euro area credit institutions related to			6. Liabilities to euro area residents denominated in foreign currency	83.723.120	163.530.138
monetary policy operations denominated in euro	4.795.146.004	2.354.018.096	7. Liabilities to non-euro area residents denominated in foreign currency	111.747.203	109.831.235
5.1 Main refinancing operations 5.2 Longer-term refinancing operations	3.083.000.000 1.712.146.004	1.561.000.000 793.018.096	7.1 Deposits and other liabilities	111.747.203	109.831.235
6. Other claims on euro area credit institutions denominated in euro	942.132.861	1.013.525.131	7.2 Liabilities arising from the credit facility under ERM II	0	0
			8. Counterpart of special drawing rights allocated by the IMF	118.206.311	125.275.550
7. Securities of euro area residents denominated in euro	6.298.382.914	7.253.276.427	9. Intra-Eurosystem liabilities	9.752.092.960	8.455.940.423
8. General government debt denominated in euro	8.744.528.645	8.786.178.291	9.1 Liabilities related to promissory notes backing
8.1 Long-term debt	1.385.447.037	1.527.126.785	the issuance of ECB debt certificates	0	0
8.2 Loans for participation in the IMF 8.3 Long-term loans and securities	718.441.211 6.640.640.397	761.114.532 6.497.936.974	9.2 Net liabilities related to the allocation of euro banknotes within the Eurosystem	1.568.551.555	1.232.234.040
9. Intra-Eurosystem claims	1.453.912.102	1.449.244.341	9.3 Net liabilities related to transactions with the ESCB (TARGET) 9.4 Other liabilities within the Eurosystem (net)	8.183.541.405 0	7.216.770.680 6.935.703
9.1 Participating interest in the ECB	393.403.998	393.403.998	10. Items in course of settlement	55.474.879	48.873.833
9.2 Claims equivalent to the transfer of foreign reserves to the ECB	1.055.840.343	1.055.840.343	11. Other liabilities	778.947.772	784.830.284
9.3 Claims related to promissory notes backing the
issuance of ECB debt certificates	0	0	11.1 Off-balance sheet instruments revaluation differences	0	8.324
9.4 Net claims related to the allocation of euro banknotes within the Eurosystem	0	0	11.2 Accruals and income collected in advance 11.3 Sundry	170.041.389 608.906.383	143.172.258 641.649.702
9.5 Net claims related to transactions with the ESCB (TARGET)	0	0
9.6 Other claims within the Eurosystem (net)	4.667.761	0	12. Provisions	1.052.296.846	846.722.005
10. Items in course of settlement	2.039.130	1.834.373	13. Revaluation accounts	650.634.500	682.695.696
11. Other assets	8.789.731.911	6.462.189.449	14. Capital and reserves	667.209.560	648.230.563
11.1 Coins	41.305.892	34.660.705	14.1 Capital	88.994.690	88.994.690
11.2 Tangible and intangible fixed assets 11.3 Other financial assets	755.690.484 6.813.977.432	758.447.832 4.619.720.123	14.2 Ordinary reserve 14.3 Extraordinary reserve	88.994.690 19.000.000	88.994.690 -
11.4 Accruals and prepaid expenses	705.669.379	613.823.872	14.4 Special reserve from the revaluation of land
11.5 Sundry	473.088.724	435.536.917	and buildings under Law 3229/2004 14.5 Special reserves	470.018.863 201.317	470.018.863 222.320
T O T A L A S S E T S	34.925.363.171	31.949.192.605	T O T A L L I A B I L I T I E S	34.925.363.171	31.949.192.605
OFF-BALANCE-SHEET ITEMS	31.12.2006	31.12.2005
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 2. Investments in Greek government securities and other securities relating to the management	18.034.147.613	19.105.547.134
and custody of funds of public entities, social security funds and private agents	10.753.664.510	10.430.655.763
3. Other off-balance-sheet items	7.035.832.577	5.256.542.624
TOTAL OFF-BALANCE-SHEET ITEMS	35.823.644.700	34.792.745.521

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 and government securities issued by other euro area countries; these securities constitute fixed investment to be held by the Bank up to maturity. In financial year 2006, (ECB) and applying to the members of the European System of Central Banks (ESCB). it was decided to reclassify securities totalling €1.6 billion under "securities held to maturity" from the category "trading book" (asset item 7).

2. The weighted key for subscription of the Bank of Greece to the ECB's capital fully paid up by the 12 national central banks of the Eurosystem is 2.65405%. 8. Fixed assets are valued at cost, except land and buildings, which are valued at market prices, determined by independent appraisers, less depreciation.

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. 9. The depreciation of buildings and banknote production costs is calculated, as of financial year 2005, at a rate of 2.5% and 20%, respectively, according to the estimated

4. Account balances related to monetary policy operations are shown under separate items. useful life of buildings (40 years) and the lifetime of banknotes (5 years on average).

5. 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 29 December 2006 ( €482.688 per ounce 10. Out of the profit for financial year 2006, €19 million were allocated to an extraordinary reserve.

compared with €434.856 per ounce on 30 December 2005). 11. Some items of the balance sheet and the profit and loss account for financial year 2005 have been reclassified so as to be comparable with the corresponding items for 6. 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 29 December 2006. financial year 2006.

1. The value of securities has been calculated on the basis of average prices applying on 29 December 2006, except for the securities included in asset item 11.3 "Other financial assets", which have been valued at cost. This item monitors the investment portfolio of the Bank of Greece, which comprises Greek government securities

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2006	DISTRIBUTION OF NET PROFIT
	2 0 0 6		2 0 0 5		(Article 71 of the Statute)
		(in euro)
1 Net interest income	305.562.534		311.925.536
1.1 Interest income 1.2 Interest expense	809.375.938 -503.813.404		683.455.834 -371.530.298
2. Net result of financial operations, write-downs
and risk provisions	362.192.133		133.521.961
2.1 Realised gains arising from financial operations	362.192.133		155.179.029		2 0 0 6 2 0 0 5
2.2 Write-downs on financial assets and positions	-22.939.084		-21.657.068		(in euro)
2.3 Transfer from provisions for foreign exchange rate				Dividend €0.67 per share on 15,891,909 shares	10.647.579 10.647.579
and price risks	22.939.084		0	Ordinary reserve	0 22.248.671
				Extraordinary reserve	19.000.000 0
3. Net income from fees and commissions	121.812.074		124.906.121	Additional dividend €2.23 per share on 15,891,909 shares*	35.438.957 27.493.003
3.1 Fees and commissions income	122.842.921		125.933.049	Tax payment on dividends (Law 3296/2004, Article 6)	18.824.078 17.948.509
3.2 Fees and commissions expense	-1.030.847		-1.026.928	To the Government	160.724.850 150.121.483
					244.635.464 228.459.245
4. Income from equity shares and participating interests	3.472.030		3.476.715
				* The dividend and the additional dividend for the year 2005,
5. Net result of pooling of monetary income	4.667.120		9.874.431	was €2.40 per share.
6. Other income	33.147.655		27.094.748
Total net income	830.853.546		610.799.512
					Athens, 19 March 2007
7. Staff costs	-214.153.481		-200.810.488
7.1 Wages and salaries	-140.052.880		-132.282.005
7.2 Employer´s contributions and other levies	-74.100.601		-68.528.483
				THE GOVERNOR	THE DIRECTOR OF THE ACCOUNTS DEPARTMENT
8. Pensions	-55.381.266		-49.036.451
				NICHOLAS C. GARGANAS	DIMITRIOS E. MATSIMANIS
9. Administrative and other expenses	-50.641.472		-39.460.857
10. Depreciation of tangible and intangible fixed assets	-38.436.988		-33.803.564
11. Provisions	-227.604.875		-59.228.907
Total expenses	-586.218.082		-382.340.267
Profit for the year	244.635.464		228.459.245

THE GOVERNOR THE DIRECTOR OF THE ACCOUNTS DEPARTMENT NICHOLAS C. GARGANAS DIMITRIOS E. MATSIMANIS

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

To the Shareholders of BANK OF GREECE AE.

Report on the Financial Statements

We have audited the accompanying financial statements of BANK OF GREECE AE, which comprise the balance sheet as at December 31, 2006, the income statement, and the statement of profit distribution. 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 determined by the European Central Bank as they have been adopted by the Bank in Article 54A of its Articles of Association and the Greek Company Law. 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 discussed in the following paragraph, we conducted our audit in accordance with the Greek Auditing Standards which are based on 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 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.

Opinion: The recorded provision for pension and other liabilities to Employee Funds amounts to €909 million, which is not supported by an analysis of the calculation method and, consequently, we could not assess its adequacy. 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 adequacy of the provision for pension and other liabilities to Employee Funds, the financial statements give a true and fair view of the financial position of BANK OF GREECE AE as of December 31, 2006, and of its financial performance 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 Greek Company Law.

Report on Other Legal and Regulatory Requirements: The content of the General Council report is consistent with the aforementioned financial statements.

Athens, 19 March 2007

The Certified Auditors - Accountants

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