Eurobank Ergasias Services and Holdings S.A.

Quarterly Report • Sep 30, 2012

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED

30 SEPTEMBER 2012

Company Registration No: 000223001000 8 Othonos Street, Athens 105 57, Greece www.eurobank.gr, Tel.: (+30) 210 333 7000 Condensed Consolidated Interim Financial Statements for the nine months ended 30 September 2012

Index to the Condensed Consolidated Interim Financial Statements

		Page
	Consolidated Interim Income Statement	3
	Consolidated Interim Balance Sheet	4
	Consolidated Interim Statement of Comprehensive Income	5
	Consolidated Interim Statement of Changes in Equity	6
	Consolidated Interim Cash Flow Statement	7
	Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements
1	General information	8
2	Basis of preparation of condensed consolidated interim financial statements	8
3	Principal accounting policies	8
4	Critical accounting estimates and judgements in applying accounting policies	9
5	Greek Economy Liquidity Support Program	9
6	Credit exposure to Greek sovereign debt	9
7	Greek Banks' recapitalisation	10
8	Segment information	11
9	Earnings per share	12
10	Income tax	12
11	Discontinued operations and disposal groups	12
12	Provision for impairment losses on loans and advances to customers	13
13	Other non recurring valuation losses	13
14	Investment securities	14
15	Shares in subsidiary undertakings	14
16	Other assets	16
17	Debt issued and other borrowed funds	16
18	Ordinary share capital, share premium and treasury shares	16
19	Preference shares	17
20	Preferred securities	17
21	Advance contribution of Hellenic Financial Stability Fund	17
22	Contingent liabilities and other commitments	17
23	National Bank of Greece S.A. voluntary tender offer	17
24	Other significant and post balance sheet events	18
25	Related party transactions	18
26	Dividends	19

Consolidated Interim Income Statement

			Nine months ended 30 September		Three months ended 30 September
		2012 2011		2012	2011
	Note	€ million	€ million	€ million	€ million
Net interest income		1,158	1,482	358	496
Net banking fee and commission income		152	209	47	73
Net insurance income		16	24	8	6
Income from non banking services Dividend income		24 4	22 6	8 2	7 3
Net trading income		83	(9)	(24)	(9)
Gains less losses from investment securities		(21)	(34)	(2)	37
Other operating income		1	0	0	0
Operating income		1,417	1,700	397	613
Operating expenses		(799)	(835)	(256)	(271)
Profit from operations before impairment on loans
and advances and non recurring valuation losses		618	865	141	342
Impairment losses on loans and advances	12	(1,213)	(984)	(419)	(330)
Impairment and other losses on Greek sovereign exposure	6	(554)	(830)	-	-
Other non recurring valuation losses	13	(160)	-	-	-
Share of results of associates and joint ventures		(0)	(1)	0	(0)
Profit/(loss) before tax		(1,309)	(950)	(278)	12
Income tax	10	275	195	58	1
Profit/(loss) for the period from continuing operations		(1,034)	(755)	(220)	13
Profit/(loss) for the period from discontinued operations	11	(51)	189	(0)	2
Net profit/(loss) for the period		(1,085)	(566)	(220)	15
Net profit for the period attributable to non controlling interest		10	9	3	2
Net profit/(loss) for the period attributable to shareholders		(1,095)	(575)	(223)	13
		€	€	€	€
Earnings/(losses) per share
-Basic and diluted earnings/(losses) per share	9	(1.63)	(1.19)	(0.41)	(0.03)
Earnings/(losses) per share from continuing operations
-Basic and diluted earnings/(losses) per share	9	(1.54)	(1.54)	(0.41)	(0.03)

Consolidated Interim Balance Sheet

		30 September	31 December
		2012	2011
	Note	€ million	€ million
ASSETS
Cash and balances with central banks		1,865	3,286
Loans and advances to banks		5,187	6,988
Financial instruments at fair value through profit or loss		483	503
Derivative financial instruments		1,853	1,818
Loans and advances to customers		43,827	48,094
Investment securities	14	10,607	11,383
Property, plant and equipment		1,312	1,304
Intangible assets		446	465
Deferred tax asset		2,050	1,726
Other assets	16	1,687	1,255
Assets of disposal group classified as held for sale	11	2,021	-
Total assets		71,338	76,822
LIABILITIES
Secured borrowing from banks		34,031	34,888
Other deposits from banks		1,127	1,043
Derivative financial instruments		2,929	3,013
Due to customers		28,927	32,459
Debt issued and other borrowed funds	17	1,383	2,671
Other liabilities		1,813	1,873
Liabilities of disposal group classified as held for sale	11	1,532	-
Total liabilities		71,742	75,947
EQUITY
Ordinary share capital	18	1,226	1,226
Share premium	18	1,438	1,439
Other reserves		(4,662)	(3,763)
Preference shares	19	950	950
Preferred securities	20	368	745
Non controlling interest		276	278
Total		(404)	875
Total equity and liabilities		71,338	76,822

Consolidated Interim Statement of Comprehensive Income

		Nine months ended 30 September			Three months ended 30 September
	2012 € million		2011 € million		2012 € million		2011 € million
Profit/(loss) for the period		(1,085)		(566)		(220)		15
Other comprehensive income: Cash flow hedges
- net changes in fair value, net of tax - transfer to net profit, net of tax	(95) 26	(69)	(12) (8)	(20)	(7) 6	(1)	(4) (4)	(8)
Available for sale securities - net changes in fair value, net of tax	86		(141)		47		(63)
- impairment losses on Greek sovereign debt transfer to net profit, net of tax	-		209		-		-
- impairment losses on other investment securities transfer to net profit, net of tax - transfer to net profit, net of tax	33 (1)	118	- (41)	27	3 (2)	48	- (64)	(127)
Foreign currency translation - net changes in fair value, net of tax - transfer to net profit, net of tax	(42) -	(42)	(36) 4	(32)	(5) -	(5)	(9) -	(9)
Other comprehensive income for the period		7		(25)		42		(144)
Total comprehensive income for the period attributable to:
Shareholders - from continuing operations - from discontinued operations	(1,045) (42)	(1,087)	(754) 154	(600)	(182) 1	(181)	(125) (6)	(131)
Non controlling interest
- from continuing operations - from discontinued operations	9 0	9	9 (0)	9	3 0	3	2 (0)	2
		(1,078)		(591)		(178)		(129)

Consolidated Interim Statement of Changes in Equity for the nine months ended 30 September 2012

	Ordinary share capital € million	Share premium € million	Special reserves € million	Retained earnings € million	Preference shares € million	Preferred securities € million	Non controlling interest € million	Total € million
Balance at 1 January 2011	1,478	1,440	644	469	950	791	322	6,094
Other comprehensive income for the period	-	-	(25)	-	-	-	0	(25)
Profit/(loss) for the period	-	-	-	(575)	-	-	9	(566)
Total comprehensive income for the nine months ended 30 September 2011	-	-	(25)	(575)	-	-	9	(591)
Acquisitions/changes in participating interests in subsidiary and associated undertakings	73	(6)	-	(23)	-	-	(48)	(4)
Share capital decrease by reducing the ordinary shares' par value	(326)	-	79	247	-	-	-	-
Purchase/sale of preferred securities	-	-	-	18	-	(37)	-	(19)
Preference shares' and preferred securities' dividend paid	-	-	-	(105)	-	-	-	(105)
Dividends distributed by subsidiaries attributable to non controlling interest	-	-	-	-	-	-	(9)	(9)
Share-based payment:
- Value of employee services	-	-	(0)	-	-	-	-	(0)
Purchase of treasury shares	(4)	1	-	-	-	-	-	(3)
Sale of treasury shares, net of tax and related expenses related expenses	3	1	-	(7)	-	-	-	(3)
	(254)	(4)	79	130	-	(37)	(57)	(143)
Balance at 30 September 2011	1,224	1,436	698	24	950	754	274	5,360
Balance at 1 January 2012	1,226	1,439	1,276	(5,039)	950	745	278	875
Other comprehensive income for the period	-	-	8	-	-	-	(1)	7
Profit/(loss) for the period	-	-	-	(1,095)	-	-	10	(1,085)
Total comprehensive income for the nine months ended 30 September 2012	-	-	8	(1,095)	-	-	9	(1,078)
Acquisitions/changes in participating interests in subsidiary and associated undertakings	-	-	-	0	-	-	(0)	(0)
Purchase/sale of preferred securities	-	-	-	212	-	(377)	-	(165)
Preferred securities' dividend paid	-	-	-	(24)	-	-	-	(24)
Dividends distributed by subsidiaries attributable to non controlling interest	-	-	-	-	-	-	(11)	(11)
Share-based payment:
- Value of employee services	-	-	(0)	-	-	-	-	(0)
Purchase of treasury shares	(1)	0	-	-	-	-	-	(1)
Sale of treasury shares, net of tax and related expenses	1	(1)	-	-	-	-	-	0
	(0)	(1)	(0)	188	-	(377)	(11)	(201)
Balance at 30 September 2012	1,226	1,438	1,284	(5,946)	950	368	276	(404)
	Note 18	Note 18			Note 19	Note 20

Consolidated Interim Cash Flow Statement for the nine months ended 30 September 2012

	Nine months ended 30 September
	2012	2011
	€ million	€ million
Cash flows from operating activities Interest received and net trading receipts	2,554	2,863
Interest paid	(1,684)	(1,585)
Fees and commissions received	539	417
Fees and commissions paid	(331)	(104)
Other income received	0	1
Cash payments to employees and suppliers	(690)	(652)
Income taxes paid	(25)	(47)
Cash flows from continuing operating profits before changes in operating assets and liabilities	363	893
Changes in operating assets and liabilities
Net (increase)/decrease in cash and balances with central banks	1,246	(972)
Net (increase)/decrease in financial instruments at fair value through profit or loss	(149)	108
Net (increase)/decrease in loans and advances to banks	1,255	1,191
Net (increase)/decrease in loans and advances to customers	1,579	1,209
Net (increase)/decrease in derivative financial instruments	42	(500)
Net (increase)/decrease in other assets	(448)	(213)
Net increase/(decrease) in due to banks	(24)	6,894
Net increase/(decrease) in due to customers	(3,002)	(7,469)
Net increase/(decrease) in other liabilities	(144)	(280)
Net cash from/(used in) continuing operating activities	718	861
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(103)	(139)
Proceeds from sale of property, plant and equipment and intangible assets	2	4
(Purchases)/sales and redemptions of investment securities	456	50
Acquisition of subsidiary undertakings net of cash acquired and associated undertakings	-	(1)
Disposal of foreign operations, net of cash and cash equivalents disposed	-	388
Dividends from investment securities and associated undertakings	4	5
Net cash from/(used in) continuing investing activities	359	307
Cash flows from financing activities
(Repayments)/proceeds from debt issued and other borrowed funds	(1,256)	(2,263)
Purchase of preferred securities	(160)	(30)
Proceeds from sale of preferred securities	-	11
Preference shares' and preferred securities' dividend paid	(31)	(128)
Purchase of treasury shares	(0)	(3)
Proceeds from sale of treasury shares	0	4
Net contributions by non controlling interest	(11)	(10)
Net cash from/(used in) continuing financing activities	(1,458)	(2,419)
Effect of exchange rate changes on cash and cash equivalents	(20)	(15)
Net increase/(decrease) in cash and cash equivalents from continuing operations	(401)	(1,266)
Net cash flows from discontinued operating activities	(281)	159
Net cash flows from discontinued investing activities	240	39
Net increase/(decrease) in cash and cash equivalents from discontinued operations	(41)	198
Cash and cash equivalents at beginning of period	3,124	4,044
Cash and cash equivalents at end of period	2,682	2,976

to the Condensed Consolidated Interim Financial Statements

1. General information

Eurobank Ergasias S.A. (the "Bank") and its subsidiaries (the "Group") are active in retail, corporate and private banking, asset management, insurance, treasury, capital markets and other services. The Bank is incorporated in Greece and its shares are listed on the Athens Stock Exchange. The Group operates mainly in Greece and in Central, Eastern and Southeastern Europe. The Bank's corporate name was amended on 2 August 2012 from "EFG Eurobank Ergasias S.A." to Eurobank Ergasias S.A.", following the Annual General Meeting's resolution on 29 June 2012.

These condensed consolidated interim financial statements were approved by the Board of Directors on 21 December 2012.

2. Basis of preparation of condensed consolidated interim financial statements

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting" and they should be read in conjunction with the Group's published consolidated annual financial statements for the year ended 31 December 2011. Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period. Except as indicated, financial information presented in euro has been rounded to the nearest million.

Going concern considerations

The financial statements have been prepared on a going concern basis. In making its assessment of the Group's ability to continue as a going concern, the Board of Directors has taken into consideration the impact of the following factors:

Solvency risk

The Group has incurred substantial impairment losses as a result of the Hellenic Republic's debt restructuring (PSI+). Such losses had a respective impact on the accounting and regulatory capital of the Group as of 31 December 2011, which fell below the minimum capital requirements as determined by the Bank of Greece.

Capital needs of the Group were assessed by the Bank of Greece (BoG) at the level of € 5,839 million, in order to be able to achieve the level of EBA Core Tier I capital of 9% throughout the period to end of 2014. This assessment takes into account, inter alia, the PSI impairment losses, the results of Blackrock's diagnostic review and the Group's business plan which also includes certain capital strengthening actions.

HFSF (Hellenic Financial Stability Fund) has already advanced to the Bank EFSF notes of total € 3.97 bn (face value) and signed a presubscription agreement for the advance to the Bank of EFSF notes of € 1.34 bn (total € 5.31 bn) as advance payment of its participation in the future share capital increase of the Bank. The said advance qualifies as Tier I capital and brings the EBA Core Tier I capital above the current minimum level of 9%. In addition, HFSF provided to the Bank a commitment letter for additional capital support of € 0.53 bn up to the total level of recapitalisation needs of € 5,839 million.

Liquidity risk

The inability of the Greek banks to gain access to the international capital and money markets and the reduction of deposits due to heightened sovereign risk and deterioration of the Greek economy led to an increased reliance of the Group to Eurosystem financing facilities. These conditions pose a significant ongoing liquidity challenge for the Group and the Greek Banking system in general. The Group expects that the ECB and Bank of Greece facilities will continue to be available, until the normalization of market conditions.

Other economic uncertainties

The continued deterioration of the Greek economy has adversely affected the Group's operations and presents significant risks and challenges for the years ahead. Currently, there are a number of material economic and market risks and uncertainties that impact the Greek Banking system. The main risks stem from the adverse macroeconomic environment, the developments on the eurozone sovereign debt crisis and the success, or otherwise, of the significant fiscal adjustment efforts and their impact on the Greek economy. The significant progress made to date could be compromised by external shocks from the global economy as well as implementation risks and reform fatigue in Greece. The restoration of confidence, after the approval of the next EFSF disbursement amounting to € 43.7 bn by the Eurogroup on 13 December 2012, the attraction of new investments and the revival of economic growth remain key challenges of the Greek economy.

Continuation of the recession could adversely affect the region and could lead to lower profitability, deterioration of asset quality and a further reduction of deposits. In addition, increased funding cost remains a significant risk, as it is dependent on both the level of sovereign spreads as well as on foreign exchange rate risk, due to the unstable nature of some currencies.

Notwithstanding the conditions and uncertainties mentioned above, the Directors, having considered the mitigating factors set out below, have a reasonable expectation that the recapitalisation of the Group will be promptly and successfully completed and hence are satisfied that the financial statements of the Group can be prepared on a going concern basis:

• (a) Bank of Greece (BoG) recommendation of 18 April 2012 and 23 May 2012 for the Group's accession to the provisions of article 6 par. 8 and 10 respectively of Law 3864/2010 as amended (Establishment of the Hellenic Financial Stability Fund-HFSF and Recapitalisation of Greek financial institutions),
• (b) the HFSF's advance contributions of € 3.97 bn and € 1.34 bn (total € 5.31 bn) and the HFSF's commitment letter for € 0.53 bn, following the relevant applications submitted by the Group and the confirmation received by the BoG about the viability and credibility of the Group's business plan, in order to ensure that the Group is sufficiently capitalized to the current minimum level of 9% (EBA Core Tier I),
• (c) the availability of additional recapitalisation funds from the official sector that can support any capital needs on top of the amounts already committed by HFSF,
• (d) the existence of the comprehensive financial support program of the EC/ECB/IMF (including the € 50 bn recapitalisation facility), aiming to correct Greece competitiveness gap and restore growth, employment and public debt sustainability and secure the banking system's stability,
• (e) the Greek authorities' commitment to support the banking system and create a viable and well capitalised private banking sector, and
• (f) the Group's continued access to Eurosystem funding (ECB and ELA liquidity facilities) over the foreseeable future.

3. Principal accounting policies

The accounting policies and methods of computation in these condensed consolidated interim financial statements are consistent with those in the published consolidated annual financial statements for the year ended 31 December 2011.

The following amendments to standards and interpretations are effective from 1 January 2012, but currently, they do not have a significant effect to the Group's financial statements:

• IFRS 7, Amendment - Disclosures, Transfers of Financial Assets

Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements

4. Critical accounting estimates and judgements in applying accounting policies

In preparing these condensed consolidated interim financial statements, the significant judgements made by Management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the published consolidated annual financial statements for the year ended 31 December 2011.

5. Greek Economy Liquidity Support Program

The Bank participates in the Greek Government's plan to support liquidity in the Greek economy under Law 3723/2008, as amended by Laws 3844/2010, 3845/2010, 3872/2010 and 3965/2011 and extended by Ministerial decision 32252/B.1132/17.07.2012, as follows:

• (a) 345,500,000 non-voting preference shares with nominal value of € 950 million were subscribed to by the Hellenic Republic on 21 May 2009 (note 19). First stream - preference shares
• (b) Second stream - bonds guaranteed by the Hellenic Republic As at 30 September 2012, the government guaranteed bonds, totalling to € 17,776 million, were fully retained by the Bank and its subsidiaries (note 17). In November 2012, government guaranteed bonds amounting to € 1,500 million, matured.
• (c) Third stream - lending of Greek Government bonds Liquidity obtained under this stream must be used to fund mortgages and loans to small and medium-size enterprises. As of 29 December 2011, there were no special Greek Government bonds borrowed by the Bank.

Under Law 3723/2008, as amended by Law 3965/2011, for the period the Bank participates in the program through the preference shares or the guaranteed bonds (streams (a) and (b) above), the Government is entitled to appoint its representative to the Board of Directors, veto strategic decisions, decisions which alter substantially the legal or financial position of the Bank and require the General Assembly's approval and dividend distributions as well as restrict management remuneration.

In addition, under Law 3756/2009, as amended by Law 3844/2010 and supplemented by Laws 3965/2011 and 4063/2012, banks participating in the Greek Economy Liquidity Support Program are not allowed to declare a cash dividend to their ordinary shareholders for 2008 to date, and are not allowed to acquire treasury shares under article 16 of the Company Law.

6. Credit exposure to Greek sovereign debt

Greek Government bonds exchanged under PSI+ in 2012

On 21 February 2012, Euro Area finance ministers agreed on a bail out program for Greece, including financial assistance from the official sector and a voluntary debt exchange agreed with the Private Sector.

The key terms and conditions of the final voluntary debt exchange package (PSI+) were as follows:

• (a) For every bond selected to participate in PSI+, 53.5% of the face amount was forgiven, 31.5% of the face amount was exchanged with new bonds of equal face amount issued by Greece and the remaining 15% was exchanged with short-term securities issued by the European Financial Stability Facility (EFSF),
• (b) The coupon on the new Greek Government Bonds (nGGBs) is 2% from 2012 to 2015, rising to 3% from 2015 to 2020, 3.65% for 2021 and 4.3% until 2042,
• (c) Accrued interest on the exchanged bonds was settled through the issue of short-term EFSF securities,
• (d) The nGGBs were issued in 20 separate tranches with staggered bullet maturities commencing in 2023 and ending in 2042 to replicate an amortisation of 5% per annum on the aggregate amount of the nGGBs,
• (e) The nGGBs rank pari passu with the EFSF € 30 bn loan to Greece contributing to the PSI+ exercise,
• (f) nGGBs are subject to English Law,
• (g) Each new bond is accompanied by a detachable GDP-linked security of the same notional amount as the face amount of the new bond.

The support program aimed at ensuring debt sustainability and restoring competitiveness, allowing Greece to achieve strict fiscal consolidation targets and the implementation of privatization plans and structural reforms.

The invitation for tender was launched on 24 February 2012 and the bonds invited to participate in PSI+ had an aggregate outstanding face amount of approximately € 206 bn. Greek and foreign law bonds of approximately € 199 bn were eventually exchanged.

Under Law 4046/2012, the tax losses arising from the bond exchange under the PSI+ program will be tax deductible in equal instalments over the life of the new bonds received, irrespective of the holding period of the bonds.

The exchange program of Greek Government bonds and other eligible securities (PSI+) provides evidence of a concession granted to the borrower (the Greek State) by the lender relating to the borrower's financial difficulty that the lender would not otherwise consider. Therefore, following the Bank's participation in the program, the Group recognised an impairment loss of € 5,779 million before tax, as of 31 December 2011, for GGBs and other securities of face value € 7,336 million exchanged in 2012 under PSI+.

Under this exchange, in March/April 2012, the Group received a) new Greek government bonds (nGGBs) with face value equal to 31.5% of the face amount of the old bonds, b) EFSF notes having a face amount of 15% of the face value of the old bonds and c) GDP-linked securities. All exchanged bonds were derecognised and the new GGBs, classified in the Held to Maturity portfolio, recognised at fair value. In 2012 and, following the international financial community's view that the market for nGGBs is active, the Group recognised an additional valuation loss of € 427 million based on market quotes at the date of recognition. GDP-linked securities were classified as derivatives. Furthermore, the Group incurred additional costs (extra funding cost, cost relating to old GGBs hedging instruments) amounting to € 12 million due to its participation in the PSI+ exchange program. As at 30 September 2012, and considering 2011 impact, total loss from PSI+ has amounted to € 6.2 bn. As at 30 September 2012, the carrying value of nGGBs amounted to € 607 million.

Post balance sheet event

Following the Eurogroup's decisions on 27 November 2012 as part of debt reduction measures, the Greek State announced on 3 December 2012 an invitation to eligible holders of nGGBs to submit offers to exchange such securities for six months zero coupon notes to be issued by the European Financial Stability Fund (EFSF). On 18 December 2012, pursuant to the above invitation, nGGBs of aggregate face amount of € 31.9 bn were eventually exchanged for EFSF notes of face amount of € 11.3 bn.

Under its participation to the Greek state's debt buyback program, the Group submitted for exchange the 100% of its nGGBs portfolio of total face value € 2.3 bn (carrying amount € 0.6 bn) and received EFSF notes of total face value € 0.8 bn. The transaction resulted in a pre tax gain of € 192 million to be recorded in the fourth quarter of 2012.

to the Condensed Consolidated Interim Financial Statements

6. Credit exposure to Greek sovereign debt (continued)

Other Greek sovereign exposure

As at 30 September 2012, the total carrying value of other Greek sovereign exposure amounted to € 5,722 million. This includes Treasury Bills of € 3,066 million and GGBs of € 910 million maturing in 2014 and issued for the Greek State's subscription to the Preference Shares issued under Law 3723/2008 "Greek Economy Liquidity Support Program".

Other losses on Greek sovereign exposure further include € 115 million valuation losses for derivatives with the Greek State and for a Greek sovereign risk related financial guarantee.

7. Greek Banks' recapitalisation

Recapitalisation framework and process

Given the severity of the impact of the Greek Government Bond exchange program (PSI+), on 21 February 2012 the Euro Area finance ministers allocated a total of € 50 bn of the second support program for Greece specifically for the recapitalisation of the Greek banking system. These funds are directed to the Hellenic Financial Stability Fund (HFSF) whose mandate has been extended and enhanced accordingly. € 23 bn of these funds were remitted to Greece in April 2012, € 16 bn in December 2012 and the final € 11 bn is expected in January 2013.

The Bank of Greece (BoG) has assessed the viability of each Greek bank and estimated its capital needs based on the more demanding of (a) a minimum Core Tier I ratio of 9% under the baseline scenario and (b) 7% under the adverse stress scenario, throughout the period to end of 2014. Capital needs of each bank were assessed based on, inter alia, the impact of its participation in the PSI+ program, the results from the BlackRock loan diagnostic exercise, the viability of its business plan, and a detailed timetable of mitigating actions to restore solvency. BoG and the European Central Bank assessed that the € 50 bn is adequate to cover the capital needs, as above, of the viable Greek Banks and the resolution of the non viable ones.

In the meantime, the impact of Greek banks participation in the Greek Government Bonds exchange program (PSI+) is such that they require a temporary financial support from the Hellenic Financial Stability Fund (HFSF), subject to the requirements provided by law and the presubscription agreement signed by each bank, the HFSF and the EFSF (see below).

The HFSF was established in 2010, in order to maintain the stability of the Greek banking system through ensuring that adequate resources are available to support viable banks' recapitalisation needs and participating to the capital increases for any non-subscribed part.

Banks considered viable have been given the opportunity to apply for and receive EBA-Core Tier Ι-eligible capital from the HFSF under a certain process. Capital may take the form of ordinary shares, contingent convertible financial instruments or ordinary shares with restricted voting rights. Ordinary shares with restricted voting rights will only be available if private investors contribute 10% of the capital raising at the rights issue. The voting rights of the HFSF for the ordinary shares it holds, subject to the 10% threshold mentioned above, will be strictly limited to specific strategic decisions on the condition that the bank adheres to its restructuring plan and as long as contingent convertible financial instruments (CoCos) are not mandatorily converted to ordinary shares (see below under (b)). HFSF is obliged to dispose, fully or partly, all the shares it acquired within five years from the initial rights issue covered by HFSF, if the required 10% private participation is met and within two years if not. In both cases the disposal period may be extended by Minister of Finance decision.

A Cabinet Act on 9 November 2012, agreed in consultation with the Troika (European Commission, ECB and IMF), provided the technical details of the banks' recapitalisation framework, as follows:

• (a) Issue of ordinary shares in order to reach, as a minimum, Core Tier I capital 6%, without including, for the purpose of this calculation the preference shares issued under Law 3723/2008 and the contingent convertible financial instruments issued under the current Act (see (b) below). The new shares, the uncovered part of which will be covered by HFSF, will be priced at the lower of i) the average price of the last 50 trading days prior to the date the offering price of the shares is determined, discounted by 50% and ii) the market price at the last date prior to the date the offering price of the shares is determined. The rights issue is expected to be completed by April 2013.
• (b) Issue of contingent convertible financial instruments (CoCos) in order to cover the gap between the rights' issue amount and the total capital needs of the Bank as set by BoG. The CoCos will be fully paid by the HFSF and will give banks the right to call the issue at par plus interest subject to the relevant approval by BoG, following capital action or capital surplus. The CoCos will carry an annual interest rate of 7%, which will increase by 0.5% per annum. If consolidated profits for the previous year do not suffice and BoG assesses that payment may jeopardize CAD ratios, coupon will be payable in kind through issuance of ordinary shares at average market price of the last 50 trading days prior to the payment date.

The CoCos will convert immediately to ordinary shares if the required 10% private participation in rights issue is not met, at 50% of the average market price of the last 50 trading days prior to the issue of the CoCos, provided that their issue will take place prior to the issue of ordinary shares. On the assumption that 10% private participation is met, the CoCos will convert to ordinary shares under the following conditions: i) if the Bank decides not to pay coupon, at 65% of average market price of the last 50 trading days prior to the interest cut off date, ii) if Core Tier I or Basel III Common Equity Tier I falls below 7% or 5.125% respectively, at 50% of the price of the initial rights issue covered by HFSF and iii) after five years, at 50% of the price of the initial rights issue covered by HFSF. The issue of CoCos is expected in January 2013.

(c) Issue of warrants on all ordinary shares acquired by HFSF provided that the requirement for 10% private participation in rights issue is achieved. The warrants are issued to the private participants in the rights' issue and are listed and tradable instruments which provide the shareholders/ warrant holders i) the right to purchase the shares from HFSF within 4.5 years, twice a year at a strike price equal to the principal amount plus 4%, which steps up by 1% per annum (warrant strike price), ii) the pre-emption right to purchase from HFSF the shares at the lower of warrant strike price and market value of last 50 days from HFSF's notice, in case HFSF intends to sell them, following a 3 year minimum holding period.

Non viable Banks will be resolved by the HFSF, in an orderly manner and at the lowest cost to the State, in a way that ensures financial stability.

To ensure that the system remains well-capitalized, by the second quarter of 2013, the Bank of Greece will conduct a follow-up stress-test exercise, based on end of 2012 market values and using a methodology determined in consultation with the Troika (European Commission, ECB, IMF).

Eurobank's capital requirements

BoG, after assessing the business plan and the capital needs of Eurobank (the "Bank") has concluded on 19 April 2012 that Eurobank is a viable bank and, on 8 November 2012, notified the Bank that its Tier I capital should increase by € 5,839 million by April 2013. The Bank, the HFSF and the European Financial Stability Facility ("EFSF") signed on 28 May 2012 and on 21 December 2012 a trilateral presubscription agreement for the advance to the Bank of EFSF notes of face value of € 3.97 bn and € 1.34 bn respectively (total € 5.31 bn) as advance payment of its participation in the future share capital increase of the Bank. In addition, HFSF provided to the Bank a commitment letter for additional capital support of € 0.53 bn up to the total level of recapitalisation needs of € 5,839 million. Proforma with the full recapitalisation amount of € 5,839 million, on 30 September 2012 the Group's regulatory capital stands at € 4.7 bn, the EBA Core Tier I capital at € 4.4 bn, its Capital Adequacy ratio at 11.8% and the EBA Core Tier I ratio at 10.9%. The disposal of the Turkish operations, which was agreed in April 2012 and is expected to complete in December 2012, will further increase Eurobank's capital ratios by approximately 50 bps.

The Group continues the implementation of its medium term internal capital generating plan, which includes initiatives which generate or release EBA equity capital and/or reduce Risk Weighted Assets. In addition, the Group is preparing for a capital raising whose timing and structure will depend on the outcome of National Bank of Greece S.A. voluntary tender offer (note 23).

to the Condensed Consolidated Interim Financial Statements

8. Segment information

Management has determined the operating segments based on the internal reports reviewed by the Strategic Planning Group (SPG) that are used to allocate resources and to assess its performance in order to make strategic decisions. The SPG considers the business both from a business unit and geographic perspective. Geographically, management considers the performance of its business in Greece and other countries in Europe (International). Greece is further segregated into retail, wholesale, wealth management, and global and capital markets while International is monitored and reviewed on a country basis. The Group aggregates segments when they exhibit similar economic characteristics and profile and are expected to have similar long-term economic development.

With the exception of Greece no other individual country contributed more than 10% of consolidated net income. The Group is organized in the following reportable segments:

• Retail: incorporating customer current accounts, savings, deposits and investment savings products, credit and debit cards, consumer loans, small business banking and mortgages.
• Corporate: incorporating direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products to corporate entities.
• Wealth Management: incorporating private banking services, including total wealth management, to medium and high net worth individuals, insurance, mutual fund and investment savings products, and institutional asset management.
• Global and Capital Markets: incorporating investment banking services including corporate finance, merger and acquisitions advice, custody, equity brokerage, financial instruments trading and institutional finance to corporate and institutional entities, as well as, specialised financial advice and intermediation to private and large retail individuals as well as small and large corporate entities.
• International: incorporating operations in Romania, Bulgaria, Serbia, Cyprus, Ukraine, Turkey and Luxembourg. During the period, the Strategic Planning Group (SPG) decided the monitoring of the Group's operations in all European countries in one business segment "International". The new segment includes the Group's foreign operations in eastern and southeastern Europe (New Europe) and in Luxembourg, previously monitored as part of Greece segment. For the nine months ended 30 September 2012, the profit before tax of the Group's operations in Luxembourg was € 19 million (30 September 2011: € 20 million). Comparative figures have been adjusted accordingly.

Other operations of the Group comprise mainly of investing activities, including property management and investment and the management of unallocated capital.

The Group's management reporting is based on International Financial Reporting Standards (IFRS). The accounting policies of the Group's operating segments are the same with those described in the principal accounting policies.

Revenues from transactions between business segments are allocated on a mutually agreed basis at rates that approximate market prices.

				For the nine months ended 30 September 2012
	Retail € million	€ million	Wealth Corporate Management € million	Global & Capital Markets € million	Other € million	International € million	Elimination center € million	Total € million
External revenue	543	343	94	81	(47)	403	-	1,417
Inter-segment revenue	55	18	(39)	(29)	23	2	(30)	-
Total revenue	598	361	55	52	(24)	405	(30)	1,417
Profit before tax from continuing operations before one-offs (see note) One-offs Profit before tax from discontinued operations Non controlling interest	(601) - - -	111 - - -	9 (9) - 0	4 (596) - -	(66) (109) (74) (10)	(52) - 11 (1)	- - - -	(595) (714) (63) (11)
Profit before tax attributable to shareholders, after one offs	(601)	111	0	(592)	(259)	(42)	-	(1,383)
Profit before tax attributable to shareholders, before one offs	(601)	111	9	4 For the nine months ended 30 September 2011	(150)	(42)	-	(669)

	Retail € million	Corporate € million	Wealth Management € million	Global & Capital Markets € million	Other € million	International € million	Elimination center € million	Total € million
External revenue	837	423	64	24	(131)	483	-	1,700
Inter-segment revenue	76	(3)	(25)	(35)	14	5	(32)	-
Total revenue	913	420	39	(11)	(117)	488	(32)	1,700
Profit before tax from continuing operations excl. impairment on GGBs	(136)	235	(4)	(57)	(183)	25	-	(120)
Impairment on GGBs	-	-	(62)	(666)	(102)	-	-	(830)
Profit before tax from discontinued operations	-	-	-	-	220	8	-	228
Non controlling interest	-	-	0	-	(9)	(1)	-	(10)
Profit before tax attributable to shareholders, after impairment on GGBs	(136)	235	(66)	(723)	(74)	32	-	(732)
Profit before tax attributable to shareholders, excl. impairment on GGBs impairment on GGBs	(136) (136)	235 235	(4) (4)	(57) (57)	28 28	32 32	- -	98 98
Note: One-off items include impairment losses on Greek sovereign debt and other non recurring valuation losses.
Page 11							30 September 2012 Condensed Consolidated Interim Financial Statements

to the Condensed Consolidated Interim Financial Statements Selected Explanatory Notes

9. Earnings per share

Basic earnings per share is calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period, excluding the average number of ordinary shares purchased by the Group and held as treasury shares.

The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potentially dilutive ordinary shares. The Group has two categories of potentially dilutive ordinary shares: share options and convertible, subject to certain conditions, preferred securities. In order to adjust the weighted average number of shares for the share options a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Bank's shares for the period) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is added to the weighted average number of ordinary shares in issue in order to determine the weighted average number of ordinary shares used for the calculation of the diluted earnings per share.

	Nine months ended Three months ended 30 September 30 September
		2012	2011	2012	2011
Net profit/(loss) for the period attributable to ordinary shareholders (after deducting dividend attributable to preference shares and preferred securities holders and after including gains/(losses) on preferred securities)	€ million	(903)	(648)	(228)	(15)
Net profit/(loss) for the period from continuing operations (after deducting dividend attributable to preference shares and preferred securities holders and after including gains/(losses) on preferred securities)	€ million	(852)	(837)	(228)	(17)
Weighted average number of ordinary shares in issue Weighted average number of ordinary shares for diluted	Number of shares	552,308,571	544,240,991	552,377,372	552,089,417
earnings per share	Number of shares	552,308,571	544,240,991	552,377,372	552,089,417
Earnings/(losses) per share
- Basic and diluted earnings/(losses) per share	€	(1.63)	(1.19)	(0.41)	(0.03)
Earnings/(losses) per share from continuing operations
- Basic and diluted earnings/(losses) per share	€	(1.54)	(1.54)	(0.41)	(0.03)

Basic and diluted losses per share from discontinued operations for the period ended 30 September 2012 amount to € 0.09 (30 September 2011: earnings € 0.35).

No dividend attributable to preference shares was included in the EPS calculation for the period ended 30 September 2012 (30 September 2011: € 57 million) (note 19).

Share options did not have an effect on the diluted earnings per share, as their exercise price exceeded the average market price of the Bank's shares for the period. The Series D and Series E of preferred securities (note 20), were not included in the calculation of diluted earnings per share, as their effect would have been anti-dilutive.

10. Income tax

On 14 February 2012, Law 4046/2012 was enacted and provided that the tax losses arising from the bond exchange under the PSI+ program (note 6) will be tax deductible in equal instalments over the life of the new bonds received, irrespective of the holding period of the bonds.

The nominal Greek corporate tax rate is 20%. In addition, dividends distributed as of 2012 are subject to a 25% withholding tax.

11. Discontinued operations and disposal groups

Disposal of Polish operations

Based on the terms of the Investment Agreement signed with Raiffeisen Bank International AG (RBI) in February 2011, the Group recorded the disposal of its Polish operations as of 31 March 2011 for a total consideration of € 718 million.

On 30 April 2012, the Group transferred 70% of its Polish banking subsidiary (Polbank) to RBI after obtaining the relevant approvals from the Polish Financial Supervision Authority (KNF). As of 30 April 2012, Polbank and RBI Poland (RBI's Polish banking subsidiary) are combined. The Group received € 460 million in cash, while the remaining consideration receivable is subject to adjustments based on the Net Asset value of Polbank at the closing of the transaction.

Moreover, Eurobank exercised on 30 April 2012 its put option on its remaining 13% stake in Raiffeisen Polbank. In October 2012, the relevant transfer of shares was completed.

Turkish operations classified as held for sale

In 2011 the Group publicly announced that it was reviewing strategic options involving the sale of a controlling stake in Eurobank Tekfen A.S. As of 1 January 2012, the execution of a sale transaction was considered to be highly probable and Eurobank Tekfen was classified as held for sale. On 9 April 2012, a Share Purchase Agreement with Burgan Bank of Kuwait was agreed which is expected to be completed before the year end. Turkish operations are presented in the International segment.

The results of the Group's Turkish operations and Polish operations are set out below. The income statement distinguishes discontinued operations from continuing operations. Comparative figures have been restated.

Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements

11. Discontinued operations and disposal groups (continued)

	Nine months ended 30 September
	2012 € million	2011 € million
Net interest income Net banking fee and commission income Other income from discontinued operations Operating expenses Impairment losses on loans and advances Profit/(loss) before tax from discontinued operations	69 10 7 (58) (17) 11	88 23 3 (96) (20) (2)
Income tax Profit/(loss) before gain on disposal	(2) 9	1 (1)
Gain/(loss) on disposal before tax Income tax Net profit/(loss) from discontinued operations	(74) 14 (51)	230 (40) 189
Net profit from discontinued operations attributable to non controlling interest	0	0
Profit/(loss) for the period from discontinued operations attributable to shareholders	(51)	189

The major classes of assets and liabilities classified as held for sale, are as follows:

	30 September
	2012
	€ million
Cash and balances with central banks	154
Loans and advances to banks	58
Trading and investment securities	215
Loans and advances to customers	1,540
Other assets	54
Total assets of disposal group classified as held for sale	2,021
Due to banks	169
Due to customers	1,311
Other liabilities	52
Total liabilities of disposal group classified as held for sale	1,532
Net Group funding associated with assets held for sale	199
Net assets of disposal group classified as held for sale	290

Cumulative losses related to held for sale operations recognised in other comprehensive income as at 30 September 2012 amounted to € 33 million (30 September 2011: losses € 118 million).

12. Provision for impairment losses on loans and advances to customers

The movement of the provision for impairment losses on loans and advances is as follows:

	€ million
Balance at 1 January 2012	3,397
Impairment losses on loans and advances charged in the period	1,213
Amounts recovered during the period	19
Loans written off during the period as uncollectible	(53)
Foreign exchange differences and other movements	(190)
Accumulated impairment losses related to held for sale operations	(36)
Balance at 30 September 2012	4,350

13. Other non recurring valuation losses

	30 September
	2012
	€ million
Impairment losses on bonds	100
Impairment losses on mutual funds and equities	49
Credit valuation losses on derivative financial instruments	11
	160

As at 30 September 2012, the Group has recognized an impairment loss amounting to € 100 million on subordinated debt issued by Agricultural Bank of Greece (ABG) whose license was revoked in July 2012 and has since been put in liquidation.

As at 30 September 2012, the Group has recognized impairment losses amounting to € 49 million on equity securities (including mutual funds), for which the decline in fair value below cost is considered to be significant and/or prolonged, as a result of the continuing deterioration in the equity markets.

Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements

14. Investment securities

30 September	31 December
2012	2011
€ million	€ million
3,592 Available-for-sale investment securities	3,185
Debt securities lending portfolio 4,971	5,992
Held-to-maturity investment securities 2,044	2,206
10,607	11,383

In 2008 and 2010, in accordance with the amendments to IAS 39, the Group reclassified eligible debt securities from the "Available-for-sale" portfolio to "Debt securities lending" portfolio carried at amortised cost. Interest on the reclassified securities continued to be recognised in interest income using the effective interest rate method. As at 30 September 2012, the carrying amount of the reclassified securities was € 1,612 million. If the financial assets had not been reclassified, changes in the fair value for the period from the reclassification date until 30 September 2012 would have resulted in € 578 million losses net of tax, which would have been recognised in the available-for-sale revaluation reserve.

Reclassified Greek Government bonds of € 1.4 bn as at 31 December 2011, exchanged with new bonds under the PSI plan in 2012, were derecognised (note 6).

Under its participation to the Greek state's debt buyback program, the Group submitted for exchange the 100% of its nGGBs portfolio of total face value € 2.3 bn (carrying amount € 0.6 bn) and received EFSF notes of total face value € 0.8 bn (see note 6).

15. Shares in subsidiary undertakings

The following is a listing of the Bank's subsidiaries as at 30 September 2012:

		Percentage	Country of
Name	Note	Holding	incorporation	Line of business
Be-Business Exchanges S.A.		98.01	Greece	Business-to-business e-commerce
Best Direct S.A. (1)		100.00	Greece	Sundry services
Enalios Real Estate Developments S.A. (2)		100.00	Greece	Real estate
ERB Insurance Services S.A.		100.00	Greece	Insurance brokerage
Eurobank Asset Management Mutual Fund Mngt Company S.A.		100.00	Greece	Mutual fund and asset management
Eurobank Business Services S.A.		100.00	Greece	Payroll and advisory services
Eurobank Equities S.A.		100.00	Greece	Capital markets and advisory services
Eurobank Ergasias Leasing S.A.		100.00	Greece	Leasing
Eurobank Factors S.A.		100.00	Greece	Factoring
Eurobank Financial Planning Services S.A.	d	100.00	Greece	Management of overdue loans
Eurobank Household Lending Services S.A.	d	100.00	Greece	Promotion/management of household products
Eurobank Properties R.E.I.C.		55.94	Greece	Real estate
Eurobank Property Services S.A.		100.00	Greece	Real estate services
Eurobank Remedial Services S.A.	d	100.00	Greece	Notification to overdue debtors
Eurolife ERB General Insurance S.A.		100.00	Greece	Insurance services
Eurolife ERB Life Insurance S.A.		100.00	Greece	Insurance services
Global Fund Management S.A. (1)		99.50	Greece	Investment advisors
Eurobank EFG Bulgaria A.D.		99.99	Bulgaria	Banking
Bulgarian Retail Services A.D.		100.00	Bulgaria	Credit card management
EFG Auto Leasing E.O.O.D.		100.00	Bulgaria	Vehicle leasing and rental
EFG Leasing E.A.D.		100.00	Bulgaria	Leasing
EFG Property Services Sofia A.D.		80.00	Bulgaria	Real estate services
IMO 03 E.A.D.		100.00	Bulgaria	Real estate services
IMO Central Office E.A.D.		100.00	Bulgaria	Real estate services
IMO Property Investments Sofia E.A.D.		100.00	Bulgaria	Real estate services
IMO Rila E.A.D.		100.00	Bulgaria	Real estate services
ERB Hellas (Cayman Islands) Ltd		100.00		Cayman Islands Special purpose financing vehicle
Berberis Investments Ltd		100.00		Channel Islands Holding company
ERB Hellas Funding Ltd		100.00		Channel Islands Special purpose financing vehicle
Eurobank Cyprus Ltd		100.00	Cyprus	Banking
CEH Balkan Holdings Ltd		100.00	Cyprus	Holding company
Chamia Enterprises Company Ltd		100.00	Cyprus	Special purpose investment vehicle
EFG New Europe Funding III Ltd		100.00	Cyprus	Finance company
NEU II Property Holdings Ltd		100.00	Cyprus	Holding company
NEU III Property Holdings Ltd		100.00	Cyprus	Holding company
NEU Property Holdings Ltd		100.00	Cyprus	Holding company
Eurobank Private Bank Luxembourg S.A.		100.00	Luxembourg	Banking
Eurobank Fund Management Company (Luxembourg) S.A.		100.00	Luxembourg	Fund management
Eurobank EFG Holding (Luxembourg) S.A.		100.00	Luxembourg	Holding company
ERB New Europe Funding B.V.		100.00	Netherlands	Finance company
ERB New Europe Funding II B.V.		100.00	Netherlands	Finance company
ERB New Europe Holding B.V.		100.00	Netherlands	Holding company
Bancpost S.A.		99.11	Romania	Banking
Eurobank Property Services S.A.		80.00	Romania	Real estate services
EFG IT Shared Services S.A.		100.00	Romania	Informatics data processing
Eliade Tower S.A.		55.94	Romania	Real estate
ERB Leasing IFN S.A.		100.00	Romania	Leasing
ERB Retail Services IFN S.A.		100.00	Romania	Credit card management
Eurobank Finance S.A.		100.00	Romania	Investment banking
Eurobank Securities S.A.		100.00	Romania	Capital markets services
IMO Property Investments Bucuresti S.A.		100.00	Romania	Real estate services
IMO-II Property Investments S.A.		100.00	Romania	Real estate services
Retail Development S.A.		55.94	Romania	Real estate
Eurolife ERB Asigurari de Viata S.A.		100.00	Romania	Insurance services
Eurolife ERB Asigurari Generale S.A.		100.00	Romania	Insurance services
Seferco Development S.A.		55.94	Romania	Real estate

to the Condensed Consolidated Interim Financial Statements

15. Shares in subsidiary undertakings (continued)

Name	Note	Percentage Holding	Country of incorporation	Line of business
Eurobank A.D. Beograd		99.98	Serbia	Banking
EFG Business Services d.o.o. Beograd		100.00	Serbia	Payroll and advisory services
EFG Leasing A.D. Beograd		99.99	Serbia	Leasing
ERB Asset Fin d.o.o. Beograd		100.00	Serbia	Asset management
ERB Property Services d.o.o. Beograd		80.00	Serbia	Real estate services
IMO Property Investments A.D. Beograd		100.00	Serbia	Real estate services
Reco Real Property A.D.		55.94	Serbia	Real estate
Eurobank Tekfen A.S.	a	99.26	Turkey	Banking
EFG Finansal Kiralama A.S.	a	99.26	Turkey	Leasing
EFG Istanbul Equities Menkul Degerler A.S.	a	99.26	Turkey	Capital market services
EFG Istanbul Holding A.S.		100.00	Turkey	Holding company
EFG Istanbul Portfoy Yonetimi A.S.	a	99.26	Turkey	Mutual fund management
Public J.S.C. Universal Bank	b	99.97	Ukraine	Banking
ERB Property Services Ukraine LLC		100.00	Ukraine	Real estate services
Eurobank EFG Ukraine Distribution LLC		100.00	Ukraine	Sundry services
Anaptyxi 2006-1 Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi APC Ltd		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi II Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi II Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi Options Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi SME I Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi SME I Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi SME II 2009-1 Plc	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi SME II APC Ltd	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Anaptyxi SME II Holdings Ltd (2)	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Andromeda Leasing I Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Andromeda Leasing I Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Daneion 2007-1 Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Daneion APC Ltd		-		United Kingdom Special purpose financing vehicle (SIC 12)
Daneion Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
ERB Hellas Plc		100.00		United Kingdom Special purpose financing vehicle
Karta 2005-1 Plc	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta APC Ltd	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta Holdings Ltd (2)	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta II Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta II Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta LNI 1 Ltd	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Karta Options Ltd (2)	e	-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion II Mortgage Finance Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion III Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion III Mortgage Finance Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion IV Holdings Ltd (2)		-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion IV Mortgage Finance Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)
Themeleion Mortgage Finance Plc		-		United Kingdom Special purpose financing vehicle (SIC 12)

(1) dormant/under liquidation entities not consolidated as of 31 December 2011 due to immateriality

(2) In July 2012, the Bank obtained full ownership of Enalios Real Estate Developments S.A., a dormant entity not consolidated due to immateriality

(3) not consolidated due to immateriality

(a) Eurobank Tekfen A.S., Turkey

On 9 April 2012, the Group entered into a sale agreement for the disposal of Eurobank Tekfen A.S. and its subsidiaries to Burgan Bank of Kuwait. The completion of the sale is expected before the year end. All regulatory approvals by the competent authorities were obtained in December 2012. Under the terms of the transaction, Burgan Bank will acquire 99.3% of Eurobank Tekfen, from Eurobank and the Tekfen Group, for an upfront cash consideration of TRY 641 million (1x Book Value). The consideration may be adjusted, depending on the Net Asset Value of Eurobank Tekfen as at the closing date. The transaction will increase Eurobank's Core Tier I capital ratio by approximately 50 bps (or capital equivalent of almost € 200 million) and will improve its liquidity position by € 500 million.

(b) Public J.S.C. Universal Bank, Ukraine

In May 2012, the Group increased its participation in Public J.S.C. Universal Bank from 99.96% to 99.97%.

(c) EFG Hellas II (Cayman Islands) Ltd, Cayman Islands

In March 2012, the company was liquidated.

Post Balance sheet events

Eurobank Financial Planning Services S.A. (previously Open 24 S.A.), Eurobank Household Lending Services S.A. (previously Eurobank Cards S.A.) and Eurobank Remedial Services S.A. (previously Eurobank Financial Planning Services S.A.), Greece

In November 2012, "Eurobank Cards S.A." changed its name into "Eurobank Household Lending Services S.A." and it operates in promotion and management of loan/ insurance products to households. "Eurobank Financial Planning Services S.A." was renamed to "Eurobank Remedial Services S.A." and operates in notification to overdue debtors.

In December 2012, the name and the activity of "Open 24 S.A." were changed. The new name of the entity is "Eurobank Financial Planning Services S.A." and it operates in the management of overdue consumer and mortgage loans.

(e) Anaptyxi SME II 2009-1 Plc, Anaptyxi SME II APC Ltd, Anaptyxi SME II Holdings Ltd, Karta 2005-1 Plc, Karta APC Ltd, Karta Holdings Ltd, Karta LNI 1 Ltd and Karta Options Ltd, United Kingdom

In October 2012, the companies were liquidated.

(d)

Selected Explanatory Notes

to the Condensed Consolidated Interim Financial Statements

16. Other assets

As at 30 September 2012, investments in associates and joint ventures amounted to € 7 million (31 December 2011: € 8 million, 30 September 2011: € 14 million) and are presented within "Other Assets".

The following is a listing of the Group's joint ventures as at 30 September 2012:

Name	Note	Percentage Holding	Country of incorporation	Line of business
Femion Ltd		66.67	Cyprus	Special purpose investment vehicle
Cardlink S.A.		50.00	Greece	POS administration
Tefin S.A.		50.00	Greece	Motor vehicle sales financing
Sinda Enterprises Company Ltd		48.00	Cyprus	Special purpose investment vehicle
Unitfinance S.A.		40.00	Greece	Financing company
Rosequeens Properties Ltd	a	33.33	Cyprus	Special purpose investment vehicle
Rosequeens Properties SRL	a	33.33	Romania	Real estate company

(a) Rosequeens Properties Ltd, Cyprus and Rosequeens Properties SRL, Romania

In August 2012, the Group acquired 33.33% of Rosequeens Properties Ltd, a special purpose investment vehicle incorporated in Cyprus, which controls 100% of Rosequeens Properties SRL, a real estate company incorporated in Romania.

17. Debt issued and other borrowed funds

	30 September	31 December
	2012	2011
	€ million	€ million
Medium-term notes (EMTN)	760	1,606
Subordinated	218	300
Securitised	405	765
	1,383	2,671

During the period, notes amounting to € 522 million, issued under the EMTN Program through the Group's special purpose entities, matured.

During the period, the Group proceeded with the repurchase of € 309 million of notes issued under the EMTN program and € 236 million of residential mortgage backed securities. All securities were issued through the Group's special purpose entities.

In February 2012, the Group invited the holders of Lower Tier II unsecured subordinated notes to tender existing bonds. The Group has repurchased notes amounting to € 106 million, generating a gain for the Group and increasing Core Tier I capital by € 53 million.

As at 30 September 2012, the covered bonds and government guaranteed bonds under the second stream of the Greek Economy Liquidity Support Program (note 5), totalling € 3,800 million and € 17,776 million respectively, were fully retained by the Bank and its subsidiaries. In May 2012, covered bonds amounting to € 650 million, matured. In November 2012, government guaranteed bonds amounting to € 1,500 million, matured.

Financial disclosures required by the Act 2620/28.08.2009 of the Bank of Greece in relation to the covered bonds issued, are available on the Bank's website.

18. Ordinary share capital, share premium and treasury shares

The par value of the Bank's shares is € 2.22 per share (31 December 2011: € 2.22). All shares are fully paid. The movement of ordinary share capital, share premium and treasury shares is as follows:

	Ordinary share capital € million	Treasury shares € million	Net € million	Share premium € million	Treasury shares € million	Net € million
Balance at 1 January 2012	1,228	(2)	1,226	1,448	(9)	1,439
Purchase of treasury shares	-	(1)	(1)	-	0	0
Sale of treasury shares	-	1	1	-	(1)	(1)
Balance at 30 September 2012	1,228	(2)	1,226	1,448	(10)	1,438
					Number of shares

	Issued ordinary shares	Treasury shares	Net
Balance at 1 January 2012	552,948,427	(809,010)	552,139,417
Purchase of treasury shares	-	(340,321)	(340,321)
Sale of treasury shares	-	390,431	390,431
Balance at 30 September 2012	552,948,427	(758,900)	552,189,527

In June 2009, the Annual General Meeting approved the issue, within certain parameters, the terms and timing of which are at the Board of Directors discretion, either in total or gradually in tranches, of a callable bond of up to € 500 million, convertible to ordinary shares of the Bank (note 20, Series D and E). In July 2011, the repeat Annual General Meeting decided the amendment of the terms of the callable bonds approved by the Annual General Meeting in June 2009 for the amount of € 150 million not yet issued/allotted and the increase of the bonds total amount by up to € 100 million under certain conditions.

Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements

18. Ordinary share capital, share premium and treasury shares (continued)

Treasury shares

Under Law 3756/2009, banks participating in the Government's Greek Economy Liquidity Support Program are not allowed to acquire treasury shares under article 16 of the Company Law.

In the ordinary course of business, subsidiaries of the Group may acquire and dispose of treasury shares; the majority of which relates to life insurance activity.

19. Preference shares

Preference Shares
	30 September	31 December
Number of	2012	2011
shares	€ million	€ million
345,500,000	950	950

On 12 January 2009 the Extraordinary General Meeting of the Bank approved the issue of 345,500,000 non-voting, non-listed, non-transferable, tax deductible, noncumulative 10% preference shares, with nominal value € 2.75 each, under Law 3723/2008 "Greek Economy Liquidity Support Program", to be fully subscribed to and paid by the Greek State with bonds of equivalent value. The proceeds of the issue total € 940 million, net of expenses, and the transaction was completed on 21 May 2009. In accordance with the current legal and regulatory framework, the issued shares have been classified as Tier I capital.

The preference shares pay a non-cumulative coupon of 10%, subject to meeting minimum capital adequacy requirements, set by Bank of Greece, availability of distributable reserves in accordance with article 44a of Company Law 2190/1920 and the approval of the Annual General Meeting. According to Law 3723/2008, as in force, five years after the issue of the preference shares or earlier subject to the approval of the Bank of Greece, the Bank may redeem the preference shares at their nominal value. In case of non redemption at the expiration of the five year period, the coupon is increased by 2% each year.

Based on the 2011 results and article 44a of Company Law 2190/1920, the Shareholders' Annual General Meeting approved the non distribution of a dividend to either ordinary or preference shareholders.

Post Balance sheet event

Under Law 3723/2008, as amended by Law 4093/2012, the Banks are required to pay the 10% coupon on preference shares notwithstanding the provisions of Law 2190/1920, with the exception of article 44a, and provided that the relevant payment does not jeopardise the minimum capital adequacy requirements.

20. Preferred securities

The movement of preferred securities issued by the Group through its Special Purpose Entity, EFG Hellas Funding Limited, is as follows:

	Series A € million	Series B € million	Series C € million	Series D € million	Series E € million	Total € million
Balance at 1 January 2012	90	155	166	275	59	745
Purchase of preferred securities	(73)	(148)	(107)	(49)	-	(377)
Sale of preferred securities	-	-	-	-	-	-
Balance at 30 September 2012	17	7	59	226	59	368

In February 2012, the Group invited the holders of preferred securities, series A, B and C to tender existing securities. The Group has repurchased an aggregate principal amount of € 325 million (Series A: € 71 million, Series B: € 147 million, Series C: € 107 million). The repurchase of preferred securities has generated a gain for the Group, net of related expenses, increasing its Core Tier I capital by € 188 million.

The rate of preferred dividends for the Tier I Issue series A has been determined at 2.50% for the period 18 March 2012 to 17 March 2013.

As at 30 September 2012, the dividend attributable to preferred securities' holders amounted to € 26 million (30 September 2011: € 37 million).

As at 30 September 2012, total gain from the redemption of preferred securities amounted to € 212 million (30 September 2011: € 18 million).

21. Advance contribution of Hellenic Financial Stability Fund

On 28 May 2012 the HFSF advanced to the Group EFSF notes of face value of € 3.97 bn on account for the impending recapitalisation of the Bank. Under the terms of the relevant presubscription agreement (PSA), the entire transaction was recorded as a securities lending agreement. On 21 December 2012, the Bank, the HFSF and the EFSF signed a similar PSA for the advance to the Bank of further EFSF notes of face value of € 1.34 bn (see note 7).

22. Contingent liabilities and other commitments

As at 30 September 2012, the Group's contingent liabilities in terms of guarantees, standby letters of credit and commitments to extend credit amounted to € 1,903 million (31 December 2011: € 2,239 million) and the Group's documentary credits amounted to € 121 million (31 December 2011: € 161 million).

Included above are contingent liabilities related to held for sale operations amounted to € 386 million as at 30 September 2012.

The Group's capital commitments in terms of property, plant and equipment amounted to € 8 million (31 December 2011: € 7 million).

23. National Bank of Greece S.A. voluntary tender offer

On 5 October 2012, the National Bank of Greece (NBG) announced its intention to launch a voluntary exchange offer to acquire all Eurobank's shares offering 58 new shares of NBG for every 100 shares of Eurobank tendered. NBG also stated that, Eurobank shareholders holding 43.6% of Eurobank's ordinary share capital have committed to tender their shares in the tender offer. The offer is subject to regulatory approvals. On 23 November 2012, the General Meeting of the shareholders of NBG, approved the increase of NBG's share capital, and the issue of new ordinary shares to be offered to Eurobank's ordinary shareholders who will accept NBG's voluntary tender offer at the said exchange ratio.

to the Condensed Consolidated Interim Financial Statements Selected Explanatory Notes

23. National Bank of Greece S.A. voluntary tender offer (continued)

The Bank announced that the exchange offer falls within the context of the on-going consolidation of the Greek banking system. Eurobank's board will further evaluate, in a constructive spirit, the merits of the business combination in the interest of all stakeholders, including employees, customers, shareholders and the Greek economy.

After the offer is launched, following the approval of relevant offering documentation by the Greek Capital Market Committee, the Bank's Board of Directors, with the assistance of its financial advisers, will consider the merits, the terms and conditions of the exchange offer and express its opinion thereon as required by Law 3461/2006.

24. Other significant and post balance sheet events

On 22 May 2012, the Second Repeat Extraordinary Shareholders' Meeting of Alpha Bank aborted the merger procedure with Eurobank and recalled Alpha Bank's General Meeting decisions on 15 November 2011.

Under Law 3864/2012 as amended by Law 4093/2012, that was enacted in November 2012, the banks receiving financial support from HFSF are required to make a lump sum payment to HFSF totalling to € 556 million. According to the relevant presubscription agreement signed with HFSF on 21 December 2012, Eurobank's portion was determined at € 154 million.

Details of significant post balance sheet events are also provided in the following notes:

Note 5-Greek Economy Liquidity Support Program

Note 6-Credit exposure to Greek sovereign debt

Note 7-Greek Banks' recapitalisation

Note 11-Discontinued operations and disposal groups

Note 15-Shares in subsidiary undertakings Note 19-Preference shares

Note 21-Advance contribution of Hellenic Financial Stability Fund

25. Related party transactions

Until 23 July 2012, the Bank was a member of the EFG Group, having as operating parent company the "European Financial Group EFG (Luxembourg) S.A." and ultimate parent company the "Private Financial Holdings Limited", the latter owned and controlled indirectly by members of the Latsis family. In particular, the EFG Group held 44.70% of the Bank's ordinary shares and voting rights, through wholly owned subsidiaries of the ultimate parent company and the remaining ordinary shares and voting rights were held by institutional and retail investors, none of which, to the knowledge of the Bank, held 5% or more.

On 23 July 2012, 43.55% of the ordinary shares and voting rights held by EFG Group were transferred to ten legal entities, each of which acquired approximately 4.4%, while the EFG Group retained the remaining 1.15%. These entities have formally stated they are independent from each other. As a result, from 23 July 2012, onwards, Eurobank ceased to be under EFG Group's control and will no longer be consolidated in the financial statements of the EFG Group. In addition, the Bank's corporate and trade name have already been amended in order to no longer include the "EFG" suffix.

In the context of the separation of the Eurobank Group from the EFG Group, the five EFG Group nominated Board members of Eurobank resigned from the Board. On 21 September 2012 the Board elected Mrs. Angeliki Frangou and Messrs. George David and Nicholas Stassinopoulos as new BoD members, with a term equal to the remaining term of the resigned members.

A number of banking transactions are entered into with related parties in the normal course of business and are conducted on an arm's length basis. These include loans, deposits and guarantees. In addition, as part of its normal course of business in investment banking activities, the Group at times may hold positions in debt and equity instruments of related parties. The volume of related party transactions and outstanding balances at the period/year-end are as follows:

		30 September 2012			31 December 2011
		Key	Entities		Key	Entities
		management	controlled		management	controlled
	EFG	personnel	by KMP and	EFG	personnel	by KMP and
	Group	(KMP)(2)	associates	Group	(KMP)(2)	associates
	€ million	€ million	€ million	€ million	€ million	€ million
Derivative financial instruments assets	-	-	-	-	-	1
Investment securities	-	-	-	82	-	7
Loans and advances to customers(1)	-	11	25	1	15	335
Due to banks	-	-	-	54	-	-
Due to customers(1)	-	13	20	4	42	345
Other liabilities	-	1	-	0	1	0
Guarantees issued	-	-	1	272	-	2
Guarantees received	-	0	-	271	0	50
		nine months ended 30 September 2012			nine months ended 30 September 2011
Net interest income	1	(0)	1	4	(1)	(3)
Net banking fee and commission income	(0)	0	0	1	0	0
Other operating income/(expense)	(0)	(1)	(0)	(3)	(0)	(1)

(1)As at 30 September 2012, loans and advances to customers are covered by cash collateral amounting to € nil (31 December 2011: € 211 million).

(2)Key management personnel includes directors and key management personnel of the Group and its parent and their close family members.

No provisions have been recognised in respect of loans given to related parties.

Key management compensation (directors and other key management personnel of the Group)

Key management personnel are entitled to compensation in the form of short-term employee benefits of € 5.2 million (30 September 2011: € 5.3 million), and longterm employee benefits of € 0.5 million out of which € 0.1 million are share-based payments (30 September 2011: € 1.4 million and € 1 million respectively).

Selected Explanatory Notes to the Condensed Consolidated Interim Financial Statements

26. Dividends

Final dividends are not accounted for until they have been ratified by the Annual General Meeting.

Under Law 3756/2009, as amended by Law 3844/2010 and supplemented by Laws 3965/2011 and 4063/2012, banks participating in the Greek Economy Liquidity Support Program are not allowed to declare a cash dividend to their ordinary shareholders for 2008 to date. Based on the 2011 results and article 44a of Company Law 2190/1920, the Shareholders Annual General Meeting approved the non distribution of a dividend to either ordinary or preference shareholders (see also note 19).

Athens, 21 December 2012

Efthymios N. Christodoulou I.D. No AB - 049358 CHAIRMAN OF THE BOARD OF DIRECTORS

Nicholas C. Nanopoulos I.D. No ΑΕ - 586794 CHIEF EXECUTIVE OFFICER

Paula N. Hadjisotiriou I.D. No AK - 221300 CHIEF FINANCIAL OFFICER

Harris V. Kokologiannis I.D. No ΑK - 021124 HEAD OF GROUP FINANCE & CONTROL