Eurobank Ergasias Services and Holdings S.A.

Quarterly Report • Nov 11, 2022

EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.

INTERIM CON SOLIDATED FINAN CIAL STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

8 Othonos Street, Athens 105 57, Greece www.eurobankholdings.gr, Tel.: (+30) 214 40 61000 General Commercial Registry No: 000223001000

General information 6
Basis of preparation and principal accounting policies 6
Significant accounting estimates and judgments in applying accounting policies 9
Capital Management 10
Operating segment information 12
Earnings per share 15
Net interest income15
Net banking fee and commission income16
Operating expenses16
Impairment allowance for loans and advances to customers17
Other impairments, restructuring costs and provisions18
Income tax 18
Disposal groups classified as held for sale 22
Derivative financial instruments23
Loans and advances to customers24
Investment securities26
Group composition 27
Investments in associates and joint ventures30
Property and equipment and Investment property 31
Other assets32
Due to central banks32
Due to credit institutions32
Due to customers33
Debt securities in issue 33
Other liabilities 34
Share capital, share premium and treasury shares 34
Fair value of financial assets and liabilities36
Interest Rate Benc hmark reform – IBOR reform 39
Cash and cash equivalents and other information on interim cash flow statement39
Contingent liabilities and commitments40
	17.1 Shares in subsidiaries27 17.2 Consolidated balance sheet and income statement of Eurobank S.A. 29

31.	Post balance sheet events40
32.	Related parties41
33.	Board of Directors42

Interim Consolidated Balance Sheet

		30 September 2022	31 December 2021
	Note	€ million	€ million
ASSETS
Cash and balances with central banks		16,165	13,515
Due from credit institutions		1,011	2,510
Securities held for trading		75	119
Derivative financial instruments	14	2,485	1,949
Loans and advances to customers	15	41,409	38,967
Investment securities	16	12,984	11,316
Investments in associates and joint ventures	18	183	267
Property and equipment	19	816	815
Investment property	19	1,372	1,492
Intangible assets		293	269
Deferred tax assets	12	4,259	4,422
Other assets	20	2,224	2,065
Assets of disposal groups classified as held for sale	13	162	146
Total assets		83,438	77,852
LIABILITIES
Due to central banks	21	11,596	11,663
Due to credit institutions	22	2,228	973
Derivative financial instruments	14	2,286	2,394
Due to customers	23	55,696	53,168
Debt securities in issue	24	3,193	2,552
Other liabilities	25	1,958	1,358
Liabilities of disposal groups classified as held for sale	13	55	109
Total liabilities		77,012	72,217
EQUITY
Share capital	26	816	816
Share premium	26	8,056	8,055
Reserves and retained earnings	26	(2,540)	(3,332)
Equity attributable to shareholders of the Company		6,332	5,539
Non controlling interests		94	96
Total equity		6,426	5,635
Total equity and liabilities		83,438	77,852

Interim Consolidated Income Statement

		Nine months ended 30 September		Three months ended 30 September
		2022	2021	2022	2021
	Note	€ million	€ million	€ million	€ million
Net interest income	7	1,081	1,000	381	330
Net banking fee and commission income	8	323	253	116	92
Income from non banking services	19	71	73	22	25
Net trading income/(loss)	14, 25	661	(5)	34	1
Gains less losses from investment securities		(19)	71	2	21
Other income/(expenses)	13, 17.1, 18	300	(1)	9	(2)
Operating income		2,417	1,391	564	467
Operating expenses	9	(681)	(650)	(231)	(217)
Profit from operations before impairments,
provisions and restructuring costs		1,736	741	333	250
Impairment losses relating to loans and
advances to customers	10	(203)	(390)	(77)	(166)
Other impairment losses and provisions	11	(48)	(25)	(15)	(15)
Restructuring costs	11	(77)	(13)	(9)	(6)
Share of results of associates and joint ventures		16	14	2	8
Profit before tax		1,424	327	234	71
Income tax	12	(318)	(111)	(68)	(45)
Net profit		1,106	216	166	26
Net profit/(loss) attributable to non controlling
interests		(0)	0	1	(0)
Net profit attributable to shareholders		1,106	216	165	26
		€	€	€	€
Earnings per share
-Basic and diluted earnings per share	6	0.30	0.06	0.04	0.01

Interim Consolidated Statement of Comprehensive Income

			Nine months ended 30 September		Three months ended 30 September
	2022		2021		2022		2021
	€ million		€ million		€ million		€ million
Net profit		1,106		216		166		26
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss:
Cash flow hedges
- changes in fair value, net of tax	3		26		4		4
- transfer to net profit, net of tax	(2)	1	1	27	(1)	3	1	5
Debt securities at FVOCI
- changes in fair value, net of tax	(587)		(36)		(103)		(4)
- transfer to net profit, net of tax	224	(363)	12	(24)	48	(55)	(11)	(15)
Foreign currency translation
- foreign operations' translation differences	1		(0)		1		(0)
- transfer to net profit on the liquidation of foreign subsidiary (note 17.1)	76	77	-	(0)	-	1	-	(0)
Associates and joint ventures
- changes in the share of other comprehensive
income, net of tax	(37)	(37)	4	4	(7)	(7)	(1)	(1)
		(322)		7		(58)		(11)
Items that will not be reclassified to profit or loss:
- Gains/(losses) from equity securities at
FVOCI, net of tax		3		1		4		1
- Actuarial gains/(losses) on post employment
benefit obligations, net of tax		2		-		-		-
		5		1		4		1
Other comprehensive income		(317)		8		(54)		(10)
Total comprehensive income attributable to:
- Shareholders		790		224		112		16
- Non controlling interests		(1)		0		0		(0)
		789		224		112		16

Interim Consolidated Statement of Changes in Equity

	Share capital € million	Share premium € million	Reserves and retained earnings € million	Non controlling interests € million	Total € million
Balance at 1 January 2021, as restated⁽¹⁾	815	8,055	(3,608)	0	5,262
Net profit	-	-	216	0	216
Other comprehensive income	-	-	8	(0)	8
Total comprehensive income for the nine months ended 30 September 2021	-	-	224	0	224
Share options plan	-	-	1	-	1
Purchase/sale of treasury shares	1	1	0	-	2
Other	-	-	(2)	(0)	(2)
	1	1	(1)	(0)	1
Balance at 30 September 2021, as restated⁽¹⁾	816	8,056	(3,385)	0	5,487
Balance at 1 January 2022	816	8,055	(3,332)	96	5,635
Net profit/(loss)	-	-	1,106	(0)	1,106
Other comprehensive income	-	-	(316)	(1)	(317)
Total comprehensive income for the nine months ended 30 September 2022	-	-	790	(1)	789
Share options plan (note 26)	0	0	2	-	2
Purchase/sale of treasury shares (note 26)	0	1	(0)	-	1
Other	-	-	-	(1)	(1)
	0	1	2	(1)	2
Balance at 30 September 2022	816	8,056	(2,540)	94	6,426
	Note 26	Note 26

(1) The comparative information has been restated due to the change in accounting policy applied in 2021 in respect of the IFRIC agenda decision for attributing benefit to periods of service (IAS 19). As a result, total equity as of 1 January and 30 September 2021 has increased by € 17 million. Further information is provided in note 2.3 of the consolidated financial statements for the year ended 31 December 2021.

Interim Consolidated Cash Flow Statement

		Nine months ended 30 September
		2022	2021
	Note	€ million	€ million
Cash flows from operating activities
Profit before income tax		1,424	327
Adjustments for:
Impairment losses relating to loans and advances to customers	10	203	390
Other impairment losses, provisions and restructuring costs	11	125	38
Depreciation and amortisation	9	92	87
Other (income)/losses οn investment securities	29	29	(20)
(Income)/losses οn debt securities in issue	29	27	20
Other adjustments	29	(315)	(10)
		1,585	832
Changes in operating assets and liabilities
Net (increase)/decrease in cash and balances with central banks		(96)	(104)
Net (increase)/decrease in securities held for trading		47	(62)
Net (increase)/decrease in due from credit institutions		1,538	547
Net (increase)/decrease in loans and advances to customers		(2,860)	(618)
Net (increase)/decrease in derivative financial instruments		55	4
Net (increase)/decrease in other assets Net increase/(decrease) in due to central banks and credit institutions		(57) 1,189	(69) 788
Net increase/(decrease) in due to customers		2,528	3,848
Net increase/(decrease) in other liabilities		208	122
		2,552	4,456
Income tax paid		(23)	(19)
Net cash from/(used in) operating activities		4,114	5,269
Cash flows from investing activities
Acquisition of fixed and intangible assets		(117)	(88)
Proceeds from sale of fixed and intangible assets	19	115	23
(Purchases)/sales and redemptions of investment securities		(2,500)	(1,516)
Acquisition of subsidiaries, net of cash acquired		-	(6)
Acquisition of holdings in associates and joint ventures, participations
in capital increases		0	(7)
Disposal of subsidiaries and merchant acquiring business, net of cash disposed	17.1,13	278	1
Disposal of holdings in associates and joint ventures	18,13	22	7
Dividends from investment securities, associates and joint ventures		1	3
Net cash from/(used in) investing activities		(2,201)	(1,583)
Cash flows from financing activities
(Repayments)/proceeds from debt securities in issue	24	709	959
Repayment of lease liabilities		(29)	(26)
(Purchase)/sale of treasury shares and exercise of share options		1	1
Net cash from/(used in) financing activities		681	934
Effect of exchange rate changes on cash and cash equivalents		1	(0)
Net increase/(decrease) in cash and cash equivalents		2,595	4,620
Cash and cash equivalents at beginning of period	29	13,149	6,681
Cash and cash equivalents at end of period	29	15,744	11,301

1. General information

Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings), which is the parent company of Eurobank S.A. (the Bank) and its subsidiaries (the Group), consisting mainly of Eurobank S.A. Group (note 17.2), are active in retail, corporate and private banking, asset management, treasury, capital markets and other services. The Group operates mainly in Greece and in Central and Southeastern Europe. The Company is incorporated in Greece and its shares are listed on the Athens Stock Exchange.

These interim consolidated financial statements were approved by the Board of Directors on 9 November 2022.

2. Basis of preparation and principal accounting policies

These interim condensed consolidated financial statements have been prepared in accordance with the International Accounting Standard (IAS) 34 'Interim Financial Reporting' as endorsed by the European Union (EU). The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2021. Where necessary, comparative figures have been adjusted to conform to changes in the presentation in the current period or to reflect changes in the accounting policies that were applied in the year ended 31 December 2021 (note 2.3 of the consolidated financial statements for the year ended 31 December 2021). Unless indicated otherwise, financial information presented in Euro has been rounded to the nearest million. The figures presented in the notes may not sum precisely to the totals provided due to rounding.

The accounting policies and methods of computation in these interim consolidated financial statements are consistent with those in the consolidated financial statements for the year ended 31 December 2021, except as described below (note 2.1).

Going concern considerations

The interim financial statements have been prepared on a going concern basis, as the Board of the Directors considered as appropriate, taking into consideration the following:

In the first nine months of 2022, the war in Ukraine continues to negatively affect the global and European economy, setting it on a new, volatile environment in which geopolitical risks, energy supply concerns and inflationary pressures have increased, while interest rate hikes may dampen growth prospects. In this challenging environment, the Greek economy exhibited notable resilience in the first half of 2022, growing by 8% and 7.7% on an annual basis in the first and second quarter respectively according to Hellenic Statistical Authority (ELSTAT), while the seasonally adjusted unemployment rate stood at 12.2% in August 2022 (August 2021: 13.7%). The Harmonized Index of Consumer Prices (HICP) increased by 12% on an annual basis in September 2022, compared to 1.9% in September 2021. According to 2023 draft State Budget, submitted to the Parliament in October 2022, the Greek Government forecasts that a) the Greek economy will grow by 5.3% in 2022 and by 2.1% in 2023 (2021: 8.4%), b) the average inflation rate (HICP) will close at 8.8% in 2022 due to increased energy and fuel costs and their secondary impact on the other sectors of the economy, before declining to 3% in 2023, c) the general government primary balance will post a deficit of 1.7% of GDP in 2022 (including a pandemic stimulus and relief package of € 4.3 billion, an energy crisis package of € 12.1 billion, and additional support measures of € 1 billion) and a surplus of 0.7% of GDP in 2023 (2021: deficit of 5%) and d) the gross public debt-to-GDP ratio will decline to 169.1% and 161.6% in 2022 and 2023 respectively (2021: 194.5%). The above forecasts may change as a result of the actual size of the support measures, the impact of inflation on economic growth, and the repercussions of the energy price hikes on public finances.

According to the International Monetary Fund's (IMF) autumn forecasts (October 2022), the real GDP in Bulgaria is expected to grow by 3.9% in 2022 and by 3% in 2023 (2021: 7.6%), while the Consumer Price Index (CPI) is expected at 12.4% in 2022 and then settle at 5.2% in 2023 (2021: 2.8%). Respectively, in Cyprus the real GDP growth is forecasted at 3.5% in 2022 and 2.5% in 2023 (2021: 5.6%), while the CPI is estimated at 8% in 2022 and 3.8% in 2023 (2021: 2.2%). Regarding Serbia, the IMF expects real GDP to expand by 3.5% in 2022 and 2.7% in 2023 (2021: 7.4%), while the forecast for the CPI is at 9.8% in 2022 and 5.5% in 2023 (2021: 4.1%).

A significant boost to growth is expected in Greece and in other countries of presence from the European Union (EU) funding mainly under the European Commission's (EC) Next Generation EU (NGEU) and the EU's Multiannual Financial Framework (MFF). Greece shall receive EU funds of more than € 30.5 billion (€ 17.8 billion in grants and € 12.7 billion in loans) up to 2026 from the Recovery and Resilience Facility (RRF) to finance projects and initiatives laid down in its National Recovery and Resilience Plan (NRRP) titled "Greece 2.0". A pre-financing of € 4 billion was disbursed in August 2021, and the first regular payment of € 3.6 billion in April 2022. In September 2022, the government filed an application for the second regular payment of € 3.6 billion. Greece has been also allocated about € 40 billion through EU's MFF 2021-2027. On the monetary policy front, although net bond purchases under the temporary Pandemic Emergency Purchase Programme (PEPP) ended in March 2022, as scheduled, the European Central Bank (ECB) will continue to reinvest principal from maturing securities at least until the end of 2024, including purchases of Greek Government

Bonds (GGBs) over and above rollovers of redemptions. Furthermore, the Governing Council of ECB, in line with its strong commitment to its price stability mandate, has proceeded with three rounds of interest rate hikes (in July 2022, September 2022 and October 2022), raising the three key ECB interest rates by 200 basis points. Moreover, it has approved a new instrument (the "Transmission Protection Instrument" – TPI) aimed at preventing fragmentation in the sovereign bonds market. Finally, it decided to recalibrate the terms and conditions of the TLTRO III (Targeted Longer-Term Refinancing Operations) (note 21).

In the first nine months of 2022, the Greek State, through the Public Debt Management Agency (PDMA), proceeded with the issuance of seven bonds of various maturities, (5-year, 10-year, 15-year and 20-year) drawing a total of € 6.9 billion from international financial markets. More recently, on 25 October 2022, the PDMA issued a 5-year bond of € 975 million (reopening of an older 5-year bond) at a yield of 2.773%. As of late September 2022, the cash reserves of the Greek State stood at nearly € 38 billion, and its sovereign rating was one notch below investment grade by two of the four major rating agencies accepted by the ECB (DBRS Morningstar: ΒΒ (high), S&P Ratings: BB+).

Regarding the outlook for the next 12 months the major macroeconomic risks and uncertainties in Greece and our region are as follows: (a) the ongoing Russia- Ukraine war, and its ramifications on the regional and global stability and security, as well as the European and Greek economy; in particular the supply disturbances caused in the natural gas market create uncertainty regarding the availability and cost of energy in Europe in the forthcoming winter and raise concerns about a slowdown or recession in European economies in 2023, (b) a prolongation and/or exacerbation of the ongoing inflationary wave, especially in the energy and food sectors, and its impact on economic growth, employment, public finances, household budgets, firms' production costs, external trade and banks' asset quality, as well as the social and political ramificationsthese may entail, (c) the ongoing and potential upcoming increases in the interest rates worldwide, and in the Euro Area in particular, that may exert upwards pressures on sovereign and private borrowing costs, especially those of highly indebted borrowers, deter investments, increase turbulence in the financial markets and lead economies to slow down or recession, (d) the actual size and duration of the current and potentially new fiscal measures aimed at alleviating the impact of rising energy prices and living costs, and their impact on the long-term sustainability of the country's public debt, (e) the impact of a potential curtailment or discontinuation of this fiscal support on growth, employment and the servicing of household and corporate debt, (f) the prospect of the so-called "twin deficits" (i.e., fiscal and current account deficit) becoming more structural, although currently they appear to be rather a repercussion of the pandemic and the energy crisis, (g) the evolution of the Covid-19 pandemic, and the probability of emergence of new Covid-19 variants that could further impact economic growth, fiscal balances and international trade by prolonging the disruptions in the global supply chain due to the lockdowns in China and the imbalances in the production process in many industries, (h) the absorption capacity of the NGEU and MFF funds and the attraction of new investments in the country, (i) the implementation of the structural reforms and privatizations' agenda in order to meet the RRF targets and milestones, (j) the geopolitical developments in the near region, (k) the exacerbation of natural disasters due to the climate change and their effect on GDP, employment and fiscal balance, and (l) the delay in the implementation of planned reforms, projects and the budget's fiscal agenda in Greece due to the prospect of the 2023 national elections resulting in a potential inability to form government and leading to a fresh election.

Materialization of the above risks including those related to increased energy prices and inflation, would have potentially adverse effects on the fiscal planning of the Greek government, as it could decelerate the pace of expected growth and on the liquidity, asset quality, solvency and profitability of the Greek banking sector. The Russia- Ukraine war poses uncertainties in global economy and international trade with far-reaching and long-term consequences. However, the risks coming from the geopolitical upheaval could be potentially mitigated with coordinated measures at the European level, as per the pandemic precedent, although progress so far is very limited and slow. In this context, the Group holds non-significant exposure in Russian or Ukrainian assets, is continuously monitoring the developments on the macroeconomic and geopolitical fronts as well as the evolution of its asset quality KPIs and has increased its level of readiness, so as to accommodate decisions, initiatives and policies to protect its capital and liquidity standing as well as the fulfilment, to the maximum possible degree, of its strategic and business goals in accordance with the business plan for 2022-2024.

In the period ended 30 September 2022, the net profit attributable to shareholders amounted to € 1,106 million (period ended 30 September 2021: € 216 million), of which € 145 million (period ended 30 September 2021: € 110 million) was related to the international operations. The adjusted net profit, excluding the € 230.5 million gain (after tax) on sale of Bank's merchant acquiring business and the € 56 million restructuring costs (after tax), amounted to € 932 million (period ended 30 September 2021: € 298 million). As at 30 September 2022, the Group's Total Adequacy Ratio (total CAD) and Common Equity Tier 1 (CET1) ratios, which include full year's transition effects, stood at 17.4% (31 December 2021: 16.1%) and 14.9% (31 December 2021: 13.7%) respectively (note 4). With regards to asset quality, the Group's NPE formation was slightly positive by € 12 million during the period (third quarter 2022: € 18 million positive), (period ended 30 September 2021: € 3 million positive). At 30 September 2022 the Group's NPE stock, following the classification of project "Solar" underlying loan portfolio as held for sale, amounted to € 2.4 billion (31 December 2021:

€ 2.8 billion), driving the NPE ratio to 5.6% (31 December 2021: 6.8%), while the NPE coverage ratio stood at 72.7% (31 December 2021: 69.2%). In accordance with the business plan for the period 2022-2024, the Group's NPE ratio was expected at 5.8% at the end of 2022 and to decline below 5% in 2024 (note 15).

In terms of liquidity, as at 30 September 2022, the Group deposits increased to € 55.7 billion (31 December 2021: € 53.2 billion), leading the Group's (net) loans to deposits (L/D) ratio to 74.3% (31 December 2021: 73.2%), while the funding from the targeted long term refinancing operations of the European Central Bank – TLTRO III programme amounted to € 11.6 billion (31 December 2021: € 11.7 billion) (note 21). During the period, the Bank proceeded with the issuance of a preferred senior note (MREL-eligible) of € 500 million (note 24). As at 30 September 2022, the Bank's MREL ratio at consolidated level stands at 21.3% of RWAs, higher than the interim binding MREL target for 2022 of 17.82% but also than the interim non-binding MREL target from 1 January 2023 of 20.45%. The rise in high quality liquid assets of the Group led the respective Liquidity Coverage ratio (LCR) to 169% (31 December 2021: 152%). In the context of the 2022 ILAAP (Internal Liquidity Adequacy Assessment Process), the liquidity stress tests results indicated that the Bank has adequate liquidity buffer to cover the potential outflows that could occur in all scenarios both in the short term (1 month horizon) and in the medium term (1 year horizon).

Going concern assessment

The Board of Directors, acknowledging the geopolitical and macroeconomic risks to the economy and the banking system and taking into account the above factors relating to (a) the idiosyncratic growth opportunities in Greece and the region for this and the next years, also underpinned by the mobilisation of the already approved EU funding mainly through the RRF, and (b) the Group's preprovision income generating capacity, asset quality, capital adequacy and liquidity position, has been satisfied that the financial statements of the Group can be prepared on a going concern basis.

2.1 New and amended standards and interpretations adopted by the Group

The following amendments to standards as issued by the International Accounting Standards Board (IASB) and endorsed by the European Union (EU) that are relevant to the Group's activities apply from 1 January 2022:

IFRS 3, Amendments, Reference to the Conceptual Framework

The amendments to IFRS 3 "Business Combinations" updated a reference to the current version of Conceptual Framework while added a requirement that, for obligations within the scope of IAS 37 "Provisions, Contingent Liabilities and Contingent Assets", an acquirer applies IAS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. In addition, for a levy that would be within the scope of IFRIC 21 Levies, the acquirer applies IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy exists at the acquisition date.

Moreover, the issued amendments added a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition in a business combination at the acquisition date.

The adoption of the amendments had no impact on the interim consolidated financial statements.

Annual improvement to IFRSs 2018-2020 cycle: IFRS1, IFRS9 and IFRS 16

The improvements introduce changes to several standards. The amendments that are relevant to the Group's activities are set out below:

The amendment to IFRS 1 "First-time Adoption of International Financial Reporting Standards" provides additional relief to a subsidiary which becomes a first-time adopter later than its parent in respect of accounting for cumulative translation differences. As a result, the amendment allows entities that have elected to measure their assets and liabilities at carrying amountsrecorded in their parent's books to also measure any cumulative translation differences using the amounts reported in the parent's consolidated financial statements. This amendment also applies to associates and joint ventures that have taken the same IFRS 1 exemption.

The amendment to IFRS 9 "Financial Instruments" clarifies which feesshould be included in the 10% test for derecognition of financial liabilities. The fees to be included in the assessment are only those paid or received between the borrower (entity) and the lender, including fees paid or received by either the borrower or lender on the other's behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the amendment.

The amendment to IFRS 16 "Leases" removes the illustration of the reimbursement of leasehold improvements, in order to avoid any potential confusion about the treatment of lease incentives.

The adoption of the amendments had no impact on the interim consolidated financial statements.

IAS 37, Amendments, Onerous Contracts – Costs of Fulfilling a Contract

The amendments to IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' clarify which costs to include in determining the cost of fulfilling a contract when assessing whether a contract is onerous. In particular, the direct costs of fulfilling a contract include both the incremental costs and an allocation of other costs directly related to fulfilling contracts' activities. General and administrative costs do notrelate directly to a contract and are excluded unlessthey are explicitly chargeable to the counterparty under the contract.

The adoption of the amendments had no impact on the interim consolidated financial statements.

3. Significant accounting estimates and judgments in applying accounting policies

In preparing these interim condensed consolidated financial statements, the significant estimates, judgments and assumptions made by Management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the consolidated financial statements for the year ended 31 December 2021, except for those related to the expected credit losses (ECL) on loans and advances to customers, as described below.

Further information about the key assumptions and sources of estimation uncertainty are set out in notes 12, 13, 15, 16, 25, 27 and 30.

3.1 Impairment losses on loans and advances to customers

In the first nine months of 2022, the prolonged war in Ukraine, the resulting geopolitical crisis along with the persistent inflationary pressures and high energy prices, and the rising borrowing costs continue to negatively affect the global economic environment. As a result of the above uncertainty has increased regarding the economic outlook in the regions the Group operates. These factors will decelerate the growth pace and may eventually affect the vulnerable corporate borrowers (like those that operate in the food industry, the energy sector, the supply of raw materials for the construction sector etc.) as well as the disposable income and the repayment capacity of the retail customers. In this volatile environment, the Greek economy exhibits notable resilience, mainly driven by the increased tourism revenues, continuousimprovements in the unemployment ratio and further acceleration of new investment on the back of the RRF funds (note 2).

Considering the macroeconomic environment described above, as well as the solid performance of the Group's lending exposures, as evidenced by the marginally positive NPE formation for the nine-month period of 2022, the Group, as at 30 September 2022, maintained the same probability-weighted annual forecasts of the key macroeconomic variables incorporated in the IFRS 9 expected credit losses' models as these were revised as at 30 June 2022.Specifically, the updated arithmetic averages of the probabilityweighted annual forecasts for the years 2022-2025, as applied for the ECL measurement of Greek lending portfolios, provide for GDP growth at 2.95% (31 December 2021: 3.27%), unemployment rate at 11.36% (31 December 2021: 12.6%), residential property growth rate at 5.60% (31 December 2021: 5.55%), commercial property growth rate at 4.97% (31 December 2021: 5.75%) and inflation rate at 3.66% (31 December 2021: 1.57%).

The Group remains cautious for any developments in the macroeconomic trends and geopolitical front and closely monitors all loan portfolios, so as to revise its estimates and assumptions applied to the assessment of impairment losses, if necessary.

4. Capital Management

The Group's capital adequacy position is presented in the following table:

	30 September	31 December
	2022	2021
	€ million	€ million
Equity attributable to shareholders of the Company	6,332	5,539
Add: Adjustment due to IFRS 9 transitional arrangements	271	528
Add: Regulatory non-controlling interests	57	57
Less: Goodwill	(2)	(2)
Less: Other regulatory adjustments	(356)	(686)
Common Equity Tier 1 Capital	6,302	5,436
Total Tier 1 Capital	6,302	5,436
Tier 2 capital-subordinated debt	950	950
Add: Other regulatory adjustments	93	-
Total Regulatory Capital	7,345	6,386
Risk Weighted Assets	42,183	39,789
Ratios:	%	%
Common Equity Tier 1	14.9	13.7
Tier 1	14.9	13.7
Total Capital Adequacy Ratio	17.4	16.1

Notes:

a) The profit of € 1,106 million attributable to the shareholders of the Company for the period ended 30 September 2022 (31 December 2021: profit of € 328 million) has been included in the calculation of the above capital ratios.

b) The Group has elected to apply the phase-in approach for mitigating the impact of IFRS 9 transition on the regulatory capital, according to the Regulation (EU) 2017/2395 (providing a 5-year transition period to recognize the impact of IFRS 9 adoption) and the Regulation 2020/873 (CRR quick fix – see below). The transition effect is included in the regulatory capital as of the first quarter of each year.

c) As of 31 March 2022, the Group is applying the temporary treatmentspecified in Article 468 of the CRR, amended by the Regulation (EU) 2020/873, therefore the Group's phased in own funds and capital ratiosreflect the 60% of unrealised lossesfor the period 1.1.2020 to 30.9.2022, accounted for asfair value changes of debt instruments measured at fair value through other comprehensive income, corresponding to specific debt exposures, as provided for in the said article. The Group's Common Equity Tier 1 and Total Capital Adequacy ratios, as if the temporary treatment of the aforementioned unrealised losses had not been applied, would be 14.7 % and 17.1% respectively.

d) The Group's CET1 as at 30 September 2022, based on the full implementation of the Basel III rules in 2025 (fully loaded CET1), referring mainly to the completion of the aforementioned IFRS 9 transitional arrangements, would be 14.2% (31 December 2021: 12.7%).

e) The pro-forma Common Equity Tier 1 and Total Capital Adequacy ratios as at 30 September 2022 with the completion of Project "Solar" (note 15) would be 14.9% and 17.2%, respectively.

The Group has sought to maintain an actively managed capital base to cover risks inherent in the business. The adequacy of the Group's capital is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking Supervision (BIS rules/ratios) which have been incorporated in the European Union (EU) legislation through the Directive 2013/36/EU (known as CRD IV) along with the Regulation No 575/2013/EU (known as CRR), as they are in force. The above Directive has been transposed into Greek legislation by Law 4261/2014 as in force. Supplementary to that, in the context of Internal Capital Adequacy Assessment Process (ICAAP), the Group considers a broader range of risk types and the Group's risk management capabilities. ICAAP aims ultimately to ensure that the Group hassufficient capital to cover all material risksthat it is exposed to, over a three-year horizon.

Based on Council Regulation No 1024/2013, the European Central Bank (ECB) conducts annually a Supervisory Review and Evaluation Process (SREP) in order to define the prudential requirements of the institutions under its supervision. The key purpose of the SREP is to ensure that institutions have adequate arrangements, strategies, processes and mechanisms as well as capital and liquidity to ensure a sound management and coverage of their risks, to which they are or might be exposed, including those revealed by stress testing and risks the institution may pose to the financial system.

Taking into account the 2021 SREP decision, for 2022, the Group is required to meet a Common Equity Tier 1 Ratio of at least 9.50% and a Total Capital Adequacy Ratio of at least 14.31% (Overall Capital Requirement or OCR) including Combined Buffer Requirement of 3.31%, which is covered with CET1 capital and sits on top of the Total SREP Capital Requirement (TSCR). However, in accordance with the ECB's measures to address the effects of Covid-19, banks are allowed, among others, to operate below the level of capital defined by the Pillar 2 Guidance and, without prejudice to the restrictions set out in CRD IV, the Combined Buffer Requirement (i.e.

Capital Conservation Buffer, Countercyclical Capital Buffer, Other Systemically Important Institutions Buffer) until the end of 2022. According to the FAQs published by the ECB, the above measure that allowed banks to operate below the combined buffer requirement results in the ECB taking a flexible approach to approving capital conservation plans that banks are legally required to submit if they breach that requirement.

The breakdown of the Group's CET1 and Total Capital requirements is presented below:

	30 September 2022
	CET1 Capital Requirements	Total Capital Requirements
Minimum regulatory requirement	4.50%	8.00%
Pillar 2 Requirement (P2R)⁽¹⁾	1.69%	3.00%
Total SREP Capital Requirement (TSCR)	6.19%	11.00%
Combined Buffer Requirement (CBR)
Capital conservation buffer (CCoB)	2.50%	2.50%
Countercyclical capital buffer (CCyB)	0.06%	0.06%
Other systemic institutions buffer (O-SII)	0.75%	0.75%
Overall Capital Requirement (OCR)	9.50%	14.31%

(1)As of 1 st of March 2022, the P2R is not applicable for the Bank, at a standalone level.

Furthermore, the Regulation 2020/873 (CRR quick fix) provides, among others, for the extension by two years of the transitional arrangements for IFRS 9 and further relief measures, allowing banks to add back to their regulatory capital any increase in new provisions for expected losses that they have recognized in 2020 and 2021 for their financial assets, which have not been defaulted. Accordingly, the relief applied for 2022 is 75%, for 2023 50% and for 2024 25%.

Further disclosures regarding capital adequacy in accordance with the Regulation 575/2013 are provided in the Consolidated Pillar 3 Reports on the Company's website.

Minimum Requirements for Eligible Own Funds and Eligible Liabilities (MREL)

Under the Directive 2014/59 (Bank Recovery and Resolution Directive or BRRD), as amended by Directive 2019/879 (BRRD II), which was transposed into the Greek legislation pursuant to Law 4799/2021 amending Law 4335/2015, European banks are required to meet the minimum requirement for own funds and eligible liabilities (MREL). The Single Resolution Board (SRB) has determined Eurobank S.A. as the Group's resolution entity and a Single Point of Entry (SPE) strategy for resolution purposes. Based on the latest SRB's communication to the Bank, the fully calibrated MREL (final target) to be met by Eurobank S.A. on a consolidated basis until the end of 2025 is set at 27.36% of its total risk weighted assets (RWAs), including a fully-loaded combined buffer requirement (CBR) of 3.76%. The final MREL target is updated by the SRB on an annual basis. The interim binding MREL target, which is applicable from 1 January 2022, stands at 17.82% of RWAs, including a CBR of 3.31%, while an interim non-binding MREL target of 20.45%, including a CBR of 3.67%, will apply from January 2023.

In the period ended 30 September 2022, in the context of the implementation of its medium-term strategy to meet its MREL requirements, the Bank proceeded with the issuance of an MREL-eligible senior preferred bond with a nominal value of € 500 million (note 24). As at 30 September 2022, the Bank's MREL ratio at consolidated level stands at 21.3% of RWAs including profit for the period ended 30 September 2022 (31 December 2021: 18.47%), which issignificantly above the aforementioned interim binding MREL target of 17.82%.

Climate risk stress test

The Group participated in the European Central Bank's (ECB) supervisory climate risk stress test, which was conducted in the first half of 2022. The 2022 climate risk stress test assessed how well banks are set up to deal with climate-related risks. A total of 104 significant banks participated in the test consisting of three modules, in which banks provided information on their: (i) own climate stress-testing capabilities, (ii) reliance on carbon-emitting sectors, and (iii) performance under different scenarios over several time horizons.

The test, which was part of the ECB's wider climate roadmap, was not a capital adequacy exercise but rather a learning one for banks and supervisors alike, aiming at identifying vulnerabilities and best practices and providing guidance to banks for the green transition. In this context, the Group has successfully completed the 2022 climate risk stress test exercise.

In July 2022, the European Central Bank (ECB) published the climate risk stress test aggregated results, showing that banks must improve their focus on climate risk. Furthermore, all participating entities, including the Group, received individual feedback and are

expected to take action accordingly, in line with the set of best practices that the ECB will publish by the end of 2022. The results have shown that the Group has made significant progress in incorporating a climate risk stress testing framework, with an overall performance in line with the average score of European Banks. The Group continues to work in order to implement its climate risk action plan, to further integrate climate risks into its business strategy and risk management practices, and to support its clients towards climate transition and sustainable business growth.

The results will feed into the Supervisory Review and Evaluation Process (SREP) from a qualitative point of view and could have an indirect potential impact on Pillar 2 requirements through the SREP scores, without however directly impacting capital through Pillar 2 guidance.

5. Operating segment information

Management has determined the operating segments based on the internal reports reviewed by the Strategic Planning Committee that are used to allocate resources and to assess their performance in order to make strategic decisions. The Strategic Planning Committee considers the business both from a business unit and geographic perspective. Geographically, management considers the performance of its business activities originated from Greece and other countries in Europe (International).

Greece is further segregated into retail, corporate, global markets & asset management and investment property. 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.

In more detail, 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 current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products to corporate entities, custody and clearing services, cash management and trade services and investment banking services including corporate finance, merger and acquisitions advice.
• Global Markets & Asset Management: incorporating financial instruments trading, services to institutional investors, as well as, specialized financial advice and intermediation. In addition, this segment incorporates mutual fund products, institutional asset management and equity brokerage.
• International: incorporating operations in Bulgaria, Serbia, Cyprus, Luxembourg and Romania.
• Investment Property: incorporating investment property activities relating to a diversified portfolio of commercial real estate assets.

Other segment of the Group refers mainly to a) property management (including repossessed assets), b) other investing activities (including equities' positions), c) private banking services to medium and high net worth individuals and the Group's share of results of Eurolife Insurance group, d) the results related to the Group's transformation projects and initiatives, the notes of Cairo, Pillar and Mexico securitizations, which were retained by the Group, and the Group's share of results of doValue Greece Loans and Credits Claim Management S.A. and e) the effect of the liquidation of "ERB Istanbul Holding A.S." in June 2022 (note 17.1).

The Group's management reporting is based on International Financial Reporting Standards (IFRS) as adopted by the EU. 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.

Operating segments

	For the nine months ended 30 September 2022
						Other and
			Global Markets &	Investment		Elimination
	Retail	Corporate	Asset Mngt	Property	International	center	Total
	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Net interest income	299	257	229	(12)	317	(11)	1,081
Net commission income	72	80	67	0	105	(0)	323
Other net revenue	328	3	641	114	(7)	(67)	1,013
Total external revenue	699	340	938	102	415	(78)	2,417
Inter-segment revenue	17	30	(25)	2	(2)	(21)	-
Total revenue	716	369	913	104	413	(99)	2,417
Operating expenses	(306)	(95)	(51)	(29)	(202)	3	(681)
Impairment losses relating to loans
and advances to customers	(147)	(15)	-	-	(26)	(15)	(203)
Other impairment losses and
provisions (note 11)	(1)	1	(16)	(3)	(7)	(23)	(48)
Share of results of associates and
joint ventures	(0)	(0)	0	-	-	16	16
Profit/(loss) before tax before
restructuring costs	262	259	846	73	178	(117)	1,501
Restructuring costs (note 11)	(13)	(1)	(1)	-	(10)	(52)	(77)
Profit/(loss) before tax	249	259	845	73	169	(169)	1,424
Net profit/(loss) attributable to non
controlling interests	-	-	-	-	(0)	0	(0)
Profit/(loss) before tax attributable to
shareholders	249	259	845	73	169	(169)	1,425

				30 September 2022
						Other and
			Global Markets	Investment		Elimination
	Retail	Corporate	& Asset Mngt	Property	International	center ⁽¹⁾	Total
	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Segment assets	14,984	16,303	13,725	1,412	21,300	15,713	83,438
Segment liabilities	31,120	11,378	7,375	360	19,534	7,244	77,012

The International segment is further analyzed as follows:

				For the nine months ended 30 September 2022
	Bulgaria	Serbia	Cyprus	Luxembourg	Romania	Total
	€ million	€ million	€ million	€ million	€ million	€ million
Net interest income	154	50	91	21	1	317
Net commission income	55	16	29	6	(1)	105
Other net revenue	(7)	2	0	0	(2)	(7)
Total external revenue	202	68	120	27	(1)	415
Inter-segment revenue	0	(0)	-	(2)	-	(2)
Total revenue	202	68	120	25	(1)	413
Operating expenses	(98)	(48)	(36)	(17)	(4)	(202)
Impairment losses relating to loans and
advances to customers	(25)	(9)	(3)	(0)	12	(26)
Other impairment losses and provisions	(2)	(3)	0	(0)	(2)	(7)
Share of results of associates and joint
ventures	-	-	-	-	(0)	(0)
Profit/(loss) before tax before
restructuring costs	77	7	80	9	5	178
Restructuring costs (note 11)	-	(10)	-	-	-	(10)
Profit/(loss) before tax	77	(2)	80	9	5	169
Net profit/(loss) attributable to non
controlling interests	0	(0)	-	-	-	(0)
Profit/(loss) before tax attributable to
shareholders	77	(2)	80	9	5	169
			30 September 2022
	Bulgaria	Serbia	Cyprus	Luxembourg	Romania	International
	€ million	€ million	€ million	€ million	€ million	€ million

Segment assets⁽²⁾ 7,692 2,473 8,761 2,264 162 21,300 Segment liabilities⁽²⁾ 6,927 2,186 8,040 2,077 356 19,534

	For the nine months ended 30 September 2021
						Other and
			Global Markets	Investment		Elimination
	Retail	Corporate	& Asset Mngt	Property	International	center	Total
	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Net interest income	332	239	165	(13)	280	(3)	1,000
Net commission income	57	52	60	0	84	(0)	253
Other net revenue	1	4	54	72	(1)	9	138
Total external revenue	390	295	279	59	363	5	1,391
Inter-segment revenue	16	31	(24)	2	(2)	(23)	-
Total revenue	406	326	255	61	361	(18)	1,391
Operating expenses	(306)	(95)	(45)	(28)	(177)	0	(650)
Impairment losses relating to loans and
advances to customers	(218)	(46)	-	-	(55)	(71)	(390)
Other impairment losses and
provisions	(1)	(0)	(2)	(3)	(4)	(14)	(25)
Share of results of associates and
joint ventures	(0)	0	0	3	(0)	12	14
Profit/(loss) before tax
before restructuring costs	(119)	186	208	32	125	(92)	340
Restructuring costs	(4)	(1)	(0)	-	(0)	(8)	(13)
Profit/(loss) before tax	(123)	185	208	32	125	(100)	327
Net profit/(loss) attributable to non
controlling interests	-	-	-	0	0	0	0
Profit/(loss) before tax attributable to
shareholders	(123)	185	208	32	125	(100)	327

				31 December 2021
						Other and
			Global Markets &	Investment		Elimination
	Retail	Corporate	Asset Mngt	Property	International	center⁽¹⁾	Total
	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Segment assets	14,878	14,696	13,265	1,495	19,870	13,648	77,852
Segment liabilities	29,562	10,869	6,828	356	18,183	6,420	72,217

	For the nine months ended 30 September 2021
	Bulgaria	Serbia	Cyprus	Luxembourg	Romania	Total
	€ million	€ million	€ million	€ million	€ million	€ million
Net interest income	138	39	76	19	8	280
Net commission income	46	10	23	6	(1)	84
Other net revenue	(1)	1	1	0	(1)	(1)
Total external revenue	183	50	100	25	5	363
Inter-segment revenue	0	(0)	0	(2)	-	(2)
Total revenue	183	50	100	23	5	361
Operating expenses	(87)	(36)	(34)	(15)	(4)	(177)
Impairment losses relating to loans and
advances to customers	(31)	(9)	(4)	0	(11)	(55)
Other impairment losses and
provisions	(2)	(2)	1	(0)	(0)	(4)
Share of results of associates
and joint ventures	-	(0)	-	-	(0)	(0)
Profit/(loss) before tax before
restructuring costs	63	3	62	8	(11)	125
Restructuring costs	-	-	-	(0)	-	(0)
Profit/(loss) before tax	63	3	62	7	(11)	125
Net profit/(loss) attributable to non
controlling interests	0	0	-	-	-	0
Profit/(loss) before tax attributable to
shareholders	63	3	62	7	(11)	125

	31 December 2021
	Bulgaria	Serbia	Cyprus	Luxembourg	Romania	International
	€ million	€ million	€ million	€ million	€ million	€ million
Segment assets ⁽²⁾	7,159	2,404	8,027	2,231	159	19,870
Segment liabilities ⁽²⁾	6,422	2,121	7,341	2,051	358	18,183

(1) Interbank eliminations between International and the other Group's segments are included.

(2) Intercompany balances among the Countries have been excluded from the reported assets and liabilities of International segment.

6. 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 dilutive potential ordinary shares. As at 30 September 2022, the Group's dilutive potential ordinary shares relate to the share options that were allocated to key executives with grant date in July 2021 (note 26). The weighted average number of shares is adjusted for the share options by calculating the weighted average number of shares that could have been acquired at fair value (determined as the average market price of the Company's shares for the period). The number of shares resulting from the above calculation 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 30 September		Three months ended 30 September
		2022	2021	2022	2021
Net profit for the period attributable to ordinary shareholders	€ million	1,106	216	165	26
Weighted average number of ordinary shares in issue for basic earnings per share	Number of shares	3,708,437,194	3,707,734,944	3,709,410,004	3,708,837,734
Weighted average number of ordinary shares in issue for diluted earnings per share	Number of shares	3,715,169,315	3,708,597,493	3,715,506,929	3,712,208,348
Earnings per share
- Basic and diluted earnings per share	€	0.30	0.06	0.04	0.01

7. Net interest income

	30 September 2022	30 September 2021
	€ million	€ million
Interest income
Customers	970	923
Banks and other assets	20	7
Securities	182	111
Derivatives	378	336
	1,550	1,377
Interest expense
Customers	(44)	(40)
Banks ⁽¹⁾⁽²⁾	23	41
Debt securities in issue	(82)	(58)
Derivatives	(364)	(318)
Lease liabilities - IFRS 16	(2)	(2)
	(469)	(377)
Total	1,081	1,000

(1) For the period ended 30 September 2022, it includes net income of € 67 million that is attributable to the targeted longer-term refinancing operations (TLTRO III) of the European Central Bank (30 September 2021: € 79 million) (note 21).

(2) Interest from financial assets with negative rates is recorded in interest expense.

8. Net banking fee and commission income

The following tables include net banking fees and commission income from contracts with customers in the scope of IFRS 15, disaggregated by major type of services and operating segments (note 5).

	30 September 2022
			Global Markets		Other and Elimination
	Retail	Corporate	& Asset Mngt	International	center	Total
	€ million	€ million	€ million	€ million	€ million	€ million
Lending related activities	7	66	7	13	(0)	92
Mutual funds and assets under management	11	1	28	8	4	52
Network activities and other⁽¹⁾	54	5	21	79	(1)	159
Capital markets	-	8	11	4	(3)	20
Total	72	80	67	105	(0)	323

	30 September 2021
			Global Markets		Other and Elimination
	Retail	Corporate	& Asset Mngt	International	center	Total
	€ million	€ million	€ million	€ million	€ million	€ million
Lending related activities	7	43	5	8	(0)	63
Mutual funds and assets under management	11	1	27	6	5	50
Network activities and other ⁽¹⁾	39	4	17	65	(6)	120
Capital markets	-	4	11	4	1	19
Total	57	52	60	84	(0)	253

(1) Including income from credit cards related services.

9. Operating expenses

	30 September 2022	30 September 2021
	€ million	€ million
Staff costs	(332)	(322)
Administrative expenses	(201)	(183)
Contributions to resolution and deposit guarantee funds	(56)	(58)
Depreciation of real estate properties and equipment	(34)	(31)
Depreciation of right of use assets	(30)	(29)
Amortisation of intangible assets	(28)	(27)
Total	(681)	(650)

The average number of employees of the Group during the period was 11,676 (30 September 2021: 11,454). As at 30 September 2022, the number of branches and business/private banking centers of the Group amounted to 615 (31 December 2021: 668).

10. Impairment allowance for loans and advances to customers

The following tables present the movement of the impairment allowance on loans and advances to customers (expected credit losses – ECL). Information with regards to the estimates applied for the expected credit loss measurement as at 30 September 2022 is provided in note 3.

	30 September 2022
	12-month ECL - Stage 1 € million	Lifetime ECL - Stage 2 € million	Lifetime ECL - Stage 3 and POCI⁽¹⁾ € million	Total € million
Impairment allowance as at 1 January	171	311	1,391	1,872
Transfers between stages	28	(8)	(20)	-
Impairment loss for the period	(45)	28	198	182
Recoveries from written - off loans	-	-	37	37
Loans and advances derecognised/ reclassified as held for sale during the period⁽²⁾	(0)	(0)	(202)	(202)
Amounts written off	-	-	(144)	(144)
Unwinding of Discount	-	-	(15)	(15)
Foreign exchange and other movements	(2)	10	(40)	(33)
Impairment allowance as at 30 September	152	341	1,203	1,696

	30 September 2021
	12-month ECL - Stage 1	Lifetime ECL - Stage 2	Lifetime ECL - Stage 3 and POCI ⁽¹⁾	Total
	€ million	€ million	€ million	€ million
Impairment allowance as at 1 January	183	439	2,855	3,477
Transfers between stages	55	18	(73)	-
Impairment loss for the period	(35)	(47)	495	413
Recoveries from written - off loans	-	-	18	18
Loans and advances derecognised/ reclassified as
held for sale during the period ⁽²⁾	(0)	(63)	(1,507)	(1,571)
Amounts written off	-	-	(179)	(179)
Unwinding of Discount	-	-	(40)	(40)
Foreign exchange and other movements	(8)	(4)	(54)	(66)
Impairment allowance as at 30 September	194	343	1,515	2,053

(1) The impairment allowance for POCI loans of € 6 million is included in 'Lifetime ECL –Stage 3 and POCI' (30 September 2021: € 5 million).

(2) It represents the impairment allowance of loans derecognized due to a) substantial modifications of the loans' contractual terms, b) sale and securitization transactions, c) debt to equity transactions and those that have been classified as held for sale (note 15).

The impairment losses relating to loans and advances to customers recognized in the Group's income statement for the period ended 30 September 2022 amounted to € 203 million (30 September 2021: € 390 million, including € 72 million loss relating to the project Mexico) and are analyzed as follows:

	30 September	30 September
	2022	2021
	€ million	€ million
Impairment loss on loans and advances to customers	(182)	(413)
Net income / (loss) from financial guarantee contracts ⁽¹⁾	(19)	-
Modification gain / (loss) on loans and advances to customers	3	18
Impairment (loss)/ reversal for credit related commitments	(5)	4
Total	(203)	(390)

(1) It refers to purchased financial guarantee contracts, not integral to the guaranteed loans (projects Wave I and II).

11. Other impairments, restructuring costs and provisions

	30 September	30 September
	2022	2021
	€ million	€ million
Impairment and valuation losses on real estate properties	(4)	(15)
Impairment losses on bonds (note 16)	(17)	(1)
Other impairment losses and provisions⁽¹⁾	(27)	(9)
Other impairment losses and provisions	(48)	(25)
Voluntary exit schemes and other related costs (note 25)	(55)	(8)
Other restructuring costs	(22)	(5)
Restructuring costs	(77)	(13)
Total	(125)	(38)

(1) Includes impairment losses on equipment and software, other assets and provisions on litigations and other operational risk events.

In the period ended 30 September 2022, the Group recognized € 27 million other impairment losses and provisions, of which € 22 million relate to impairment losses for receivables and provisions for cases in legal dispute.

For the period ended 30 September 2022, the Group recognized € 22 million restructuring costs, of which ca. € 10 million relate to the merger of Eurobank a.d. Beograd with Direktna Banka a.d., while the remaining costs mainly relate to the Group's transformation projects and initiatives.

12. Income tax

	30 September	30 September
	2022	2021
	€ million	€ million
Current tax	(38)	(26)
Deferred tax	(280)	(85)
Total income tax	(318)	(111)

According to Law 4172/2013 currently in force, the nominal Greek corporate tax rate for credit institutions that fall under the requirements of article 27A of Law 4172/2013 regarding eligible DTAs/deferred tax credits (DTCs) against the Greek State is 29%. As at 30 September 2022, the Greek corporate tax rate for legal entities other than the aforementioned credit institutions was 22%. In addition, the withholding tax rate for dividends distributed, other than intragroup dividends, is 5%. In particular, the intragroup dividends under certain preconditions are relieved from both income and withholding tax.

The nominal corporate tax rates applicable in the banking subsidiaries incorporated in the international segment of the Group (note 5) are as follows: Bulgaria 10%, Serbia 15%, Cyprus 12.5% and Luxembourg 24.94%.

Tax certificate and open tax years

The Company and its subsidiaries, associates and joint ventures, which operate in Greece (notes 17.1 and 18) have in principle 1 to 6 open tax years. For fiscal years starting from 1 January 2016 onwards, an 'Annual Tax Certificate' on an optional basis, is provided for the Greek entities, with annual financial statements audited compulsorily, pursuant to the Law 4174/2013, which is issued after a tax audit is performed by the same statutory auditor or audit firm that audits the annual financial statements. The Company and (as a general rule) the Group's Greek companies will continue to obtain such certificate.

In June 2022, the tax audit of the Company by the tax authorities for the tax year 2016 was completed, while for the open tax years 2017-2020 the tax certificates are unqualified. The Bank's open tax years are 2020 - 2021. The tax certificates of the Bank and the other Group's entities, which operate in Greece, are unqualified for their open tax years until 2020. In addition, for the year ended 31 December 2021, the tax audits from external auditors are in progress.

In accordance with the Greek tax legislation and the respective Ministerial Decisions issued, additional taxes and penalties may be imposed by the Greek tax authorities following a tax audit within the applicable statute of limitations (i.e. in principle five years as from the end of the fiscal year within which the relevant tax return should have been submitted), irrespective of whether an unqualified tax certificate has been obtained from the tax paying company. In light of the above, as a general rule, the right of the

Greek State to impose taxes up to tax year 2015 (included) has been time-barred for the Group's Greek entities as at 31 December 2021.

The open tax years of the foreign banking entities of the Group are as follows: (a) Eurobank Cyprus Ltd, 2018-2021, (b) Eurobank Bulgaria A.D., 2016-2021, (c) Eurobank Direktna a.d. (Serbia), 2016-2021, and (d) Eurobank Private Bank Luxembourg S.A., 2017-2021. The remaining foreign entities of the Group (notes 17.1 and 18), which operate in countries where a statutory tax audit is explicitly stipulated by law, have 2 to 6 open tax years in principle, subject to certain preconditions of the applicable tax legislation of each jurisdiction.

In reference to its total uncertain tax positions, the Group assesses all relevant developments (e.g. legislative changes, case law, ad hoc tax/legal opinions, administrative practices) and raises adequate provisions.

Deferred tax

Deferred tax is calculated on all deductible temporary differences under the liability method as well as for unused tax losses at the rate in effect at the time the reversal is expected to take place.

The net deferred tax is analyzed as follows:

	30 September	31 December
	2022	2021
	€ million	€ million
Deferred tax assets	4,259	4,422
Deferred tax liabilities	(28)	(26)
Net deferred tax	4,231	4,396

The movement on deferred tax is as follows:

	30 September
	2022
	€ million
Balance at 1 January	4,396
Income statement credit/(charge)	(280)
Investment securities at FVOCI	116
Cash flow hedges	(0)
Other	(1)
Balance at 30 September	4,231

Deferred income tax (charge)/credit is attributable to the following items:

	30 September	30 September
	2022	2021
	€ million	€ million
Impairment/ valuation relating to loans, disposals and write-offs	(91)	(35)
Unused tax losses	(0)	(1)
Tax deductible PSI+ losses	(38)	(38)
Carried forward debit difference of law 4831/2021	(73)	6
Change in fair value and other temporary differences	(78)	(17)
Deferred income tax (charge)/credit	(280)	(85)

Deferred tax assets/(liabilities) are attributable to the following items:

	30 September	31 December
	2022	2021
	€ million	€ million
Impairment/ valuation relating to loans and accounting write-offs	1,037	1,034
PSI+ tax related losses	964	1,001
Losses from disposals and crystallized write-offs of loans	2,273	2,365
Carried forward debit difference of law 4831/2021⁽¹⁾	-	73
Other impairments/ valuations through the income statement	(109)	(38)
Costs directly attributable to equity transactions	3	5
Cash flow hedges	4	5
Defined benefit obligations	6	6
Real estate properties, equipment and intangible assets	(72)	(61)
Investment securities at FVOCI	4	(112)
Other⁽²⁾	121	118
Net deferred tax	4,231	4,396

(1) The unutilized part, as at 31 December 2021, of the carried forward crystallized tax losses of loans, in accordance with the law 4831/2021 (see below), was offset against taxable profit for the period ended 30 September 2022.

(2) It includes, among others, DTA on deductible temporary differences relating to operational risk provisions and the leasing operations.

Further information, in relation to the aforementioned categories of deferred tax assets as at 30 September 2022, is as follows:

• (a) € 1,037 million refer to deductible temporary differences arising from impairment/valuation relating to loans including the accounting debt write-offs according to the Greek tax law 4172/2013, as in force. These temporary differences can be utilized in future periods with no specified time limit and according to current tax legislation of each jurisdiction;
• (b) € 964 million refer to losses resulted from the Group's participation in PSI+ and the Greek's state debt buyback program which are subject to amortization for tax purposes over a thirty-year period, i.e. 1/30 of losses per year starting from year 2012 onwards (see below – DTCs section);
• (c) € 2,273 million refer to the unamortized part of the crystallized tax losses arising from write-offs and disposals of loans, which are subject to amortization over a twenty-year period;

In addition, as at 30 September 2022, the Company and the Bank have not recognised deferred tax asset on unused tax losses amounting to € 441 million (31 December 2021: € 517 million). In particular, a part of the Bank's carried forward tax losses was offset against the taxable profit for the period ended 30 September 2022, leading the Group's respective effective tax rate to 22% (34% in the comparative period, including the effect of the non-recognition of DTA on the impairment loss of the "Mexico" loan portfolio in Eurobank Holdings consolidated financial statements).

Assessment of the recoverability of deferred tax assets

The recognition of the deferred tax assets is based on management's assessment that the Group's legal entities will have sufficient future taxable profits, against which the deductible temporary differences and the unused tax losses can be utilized. The deferred tax assets are determined on the basis of the tax treatment of each deferred tax asset category, as provided by the applicable tax legislation of each jurisdiction and the eligibility of carried forward losses for offsetting with future taxable profits. Additionally, the Group's assessment on the recoverability of recognized deferred tax assets is based on (a) the future performance expectations (projections of operating results) and growth opportunities relevant for determining the expected future taxable profits, (b) the expected timing of reversal of the deductible and taxable temporary differences, (c) the probability that the Group entities will have sufficient taxable profits in the future, in the same period as the reversal of the deductible and taxable temporary differences or in the years into which the tax losses can be carried forward, and (d) the historical levels of Group entities' performance in combination with the previous years' tax losses caused by one off or non-recurring events.

In particular, for the period ended 30 September 2022, the deferred tax asset (DTA) recoverability assessment has been based on the three-year Business Plan that was approved by the Board of Directors in December 2021, for the period up to the end of 2024, (also submitted to the Single Supervisory Mechanism -SSM-) and certain updates of the above plan that were carried out in the first half of 2022. For the years beyond 2024, the forecast of operating results was based on the management projections considering the growth opportunities of the Greek economy, the banking sector and the Group itself. Specifically, the management projections for

the Group's future profitability adopted in the Business Plan and its updates, have considered, among others, (a) the macroeconomic developments in Greece and the region including the resilient (even though decelerated) growth of the Greek economy underpinned by the Recovery and Resilience Fund (RRF) grants and loans, b) the potential upside, related with the impact of interest rates' increase on the Group's net interest income, (c) the increase in loan volumes and investment securities, (d) the higher fee and commission income mostly from assets under management, bancassurance, network and capital markets, (e) the discipline in operating expenses' targets, and (f) the gradual reduction of cost of risk in line with the new NPE Management Strategy submitted to SSM (note 15). The major initiatives introduced in the context of the Group's transformation plan "Eurobank 2030", will contribute to the achievement of the above financial objectives.

The Group closely monitors and constantly assesses the developments on the macroeconomic and geopolitical front (note 2) including the inflationary pressures mainly related with the energy and food prices and their potential effect on the achievement of its Business Plan in terms of asset quality and profitability and will continue to update its estimates accordingly.

Deferred tax credit against the Greek State and tax regime for loan losses

As at 30 September 2022, pursuant to the Law 4172/2013, as in force, the Bank's eligible DTAs/deferred tax credits (DTCs) against the Greek State amounted to € 3,438 million (31 December 2021: € 3,547 million). The DTCs are accounted for on: (a) the unamortised losses from the Private Sector Involvement (PSI) and the Greek State Debt Buyback Program, which are subject to amortisation over a thirty-year period and (b) on the sum of (i) the unamortized part of the DTC eligible crystallized tax losses arising from write-offs and disposals of loans, which are subject to amortization over a twenty-year period, (ii) the accounting debt write-offs and (iii) the remaining accumulated provisions and other losses in general due to credit risk recorded up to 30 June 2015. The DTCs will be converted into directly enforceable claims (tax credit) against the Greek State provided that the Bank's after tax accounting result for the year is a loss.

According to the Law 4831/2021 (article 125), which amended Law 4172/2013, the amortization of the PSI tax related losses is deducted from the taxable income at a priority over that of the crystallized tax losses (debit difference) arising from write-offs and disposals of loans. In addition, the amount of the annual tax amortization of the above crystallized tax losses is limited to the amount of the annual taxable profits, calculated before the deduction of such losses and following the annual tax deduction of the PSI tax related losses. The unutilized part of the annual tax amortization of the crystallized loan losses can be carried forward for offsetting over a period of 20 years. If at the end of the 20-year utilization period, there are balancesthat have not been offset, these will qualify as a tax loss, which is subject to the 5-year statute of limitation. The above provisions apply as of 1 January 2021 and cover the crystallized tax losses that have arisen from write-offs and disposals of loans as of 1 January 2016 onwards.

Taking into account the tax regime in force, the recovery of the Bank's deferred tax asset recorded on loans and advances to customers and the regulatory capital structure are further safeguarded, contributing substantially to the achievement of NPE management targets through write-offs and disposals, in line with the regulatory framework and SSM requirements.

According to tax Law 4172/2013 as in force, an annual fee of 1.5% is imposed on the excess amount of deferred tax assets guaranteed by the Greek State, stemming from the difference between the current tax rate for the eligible credit institutions (i.e. 29%) and the tax rate applicable on 30 June 2015 (i.e. 26%). For the period ended 30 September 2022, an amount of € 4.6 million has been recognized in "Other income/(expenses)".

13. Disposal groups classified as held for sale

	30 September	31 December
	2022	2021
	€ million	€ million
Assets of disposal groups
Real estate properties	17	31
Loans related to project Solar (note 15)	71	-
Village Roadshow Operations Hellas S.A. and
Intertech S.A. – International Technologies	64	81
IMO 03 E.A.D. (note 17.1)	-	6
Credit card acquiring - project Triangle	-	28
Eliade Tower S.A.	10	-
Total	162	146
Liabilities of disposal groups
Village Roadshow Operations Hellas S.A.	54	72
Credit card acquiring - project Triangle	-	37
Other liabilities related to project Solar (note 15)	1	-
Eliade Tower S.A.	0	-
Total	55	109

Real estate properties

Starting from the end of 2019, the Group, in the context of its strategy for the active management of its real estate portfolio (repossessed, investment properties and own used properties), has gradually classified as held for sale (HFS) certain pools of real estate assets of total remaining carrying amount ca. € 17 million as at 30 September 2022 (31 December 2021: € 31 million), after their remeasurement in accordance with the IFRS 5 requirements. The Group remains committed to its plan to sell the aforementioned assets, which is expected to be completed within 2023, and undertakes all necessary actions towards this direction.

The above non-recurring fair value measurements were categorized as Level 3 of the fair value hierarchy due to the significance of the unobservable inputs used, with no change occurring up to 30 September 2022.

Village Roadshow Operations Hellas S.A. and Intertech S.A. – International Technologies

In the third quarter of 2021, the Bank acquired 100% of the shares and voting rights of Village Roadshow Operations Hellas S.A. for a cash consideration of € 1 million; and 29.48% of the shares and voting rights of Intertech S.A. – International Technologies for a cash consideration of € 2 million. The acquisitions took place following the enforcement of collaterals on the companies' shares under Bank's lending arrangements.

Since its acquisition, Village Roadshow Operations Hellas S.A. has been accounted for in accordance with the provisions of IFRS 5 for subsidiaries acquired with a view to sale. On 2 August 2022, the Bank signed an agreement for the sale of its participation interest of 100% in Village Roadshow Operations Hellas S.A to a third party. The completion of the sale is subject to the terms and conditions provided for in the aforementioned agreement. As at 30 September 2022, the company's assets of € 64 million (net of intragroup cash deposit) were classified as held for sale and measured based on a) the fair value of the identifiable liabilities of € 54 million (net of the carrying amount of the intragroup liabilities mainly referring to borrowing from the Bank) and b) the fair value of the net assets less costs to sell, determined at € 1 million.

The aforementioned fair value measurement for Village Roadshow Operations Hellas S.A has been categorized as level 3 of the fair value hierarchy due to the significance of the unobservable inputs used.

In addition, since its acquisition, Intertech S.A. – International Technologies, which is a listed company in Athens Stock Exchange, was classified as held for sale. In September 2022, the Bank disposed of its remaining participation interest in the company of 29.36% for a cash consideration of € 1.9 million with an immaterial effect on the Group's income statement.

Eurobank Merchant Acquiring business -Project 'Triangle'

On 7 December 2021, the Company announced that its subsidiary Eurobank S.A. ("Eurobank") had signed a binding agreement with Worldline B.V. ("Worldline") that included, among others, a) the sale of 80% of Eurobank's merchant acquiring business ("PayCo") to Worldline and b) a long term agreement for the exclusive distribution of PayCo products in Greece through Eurobank's sales network. On the basis of the aforementioned agreement, as of 31 December 2021 "PayCo" was classified as held for sale.

On 30 June 2022, after receiving all necessary approvals, the spin-off of the Bank's merchant acquiring business to Cardlink Payment Institution S.A. ("Cardlink One"), a licensed payment institution, and the transfer of 80% of Cardlink One's shares to Worldline was completed for a cash consideration of € 254 million, after certain adjustments. Furthermore, under the related shareholders' agreement, the remaining 20% interest in "Cardlink One" is subject to a combination of call and put options, exercisable after approximately 3 years.

As a result of the sale transaction for the 80% shareholding and based on the terms of the shareholders' agreement in reference to the combination of optionsfor the 20% shareholding, the Bank hasfully derecognised the merchant acquiring business, since through the combination of options, access to substantially all the returns associated with the remaining 20% ownership interest is deemed to be transferred to Wordline at the time of the transaction.

On this basis, other than the cash consideration, on 30 June 2022 the Bank recognised in other assets a financial asset to be measured at fair value through profit or loss equal to € 68.5 million, representing the present value of the contractual right to receive the options' estimated exercise price at the time of their execution. In addition, on the same date, the Bank recognised in other assets € 15.1 million deferred consideration in accordance with the terms of the agreement.

Following the above, the resulting gain from the transaction that was recognised in "Other income/(expenses)", amounted to € 324.7 million before tax (€ 230.5 million after tax), including the costs directly attributable to the transaction.

Eliade Tower S.A.

In September 2022, the Group decided to proceed with the sale of its participation interest of 99.99% in Eliade Tower S.A. On this basis, as at 30 September 2022 the company was classified as held for sale and was measured by reference to the expected consideration, based on a relevant offer made by a third party, being the lower of its carrying amount and fair value less costs to sell, in accordance with IFRS 5. Accordingly, an impairment loss of € 1.5 million was recognized in the income statement line "Other impairment losses and provisions". As at 30 September 2022, the carrying amount of the company's assets (mainly relating to investment property) was € 10.1 million.

Post balance sheet event

In October 2022, the sale of Eliade Tower S.A. was completed with an immaterial effect on the Group's income statement.

14. Derivative financial instruments

	30 September 2022		31 December 2021
	Fair values		Fair values
	Assets	Liabilities	Assets	Liabilities
	€ million € million		€ million	€ million
Derivatives for which hedge accounting is not applied/ held for trading	1,962	1,653	1,837	1,479
Derivatives designated as fair value hedges	515	534	82	804
Derivatives designated as cash flow hedges	8	99	30	111
Total derivatives assets/liabilities	2,485	2,286	1,949	2,394

Ιn the period ended 30 September 2022, the change in the carrying amount of the derivatives assets and liabilities is mainly attributed to the upward movement of the euro interest rate curve, the liquidation of certain derivative positions and the initiation of new ones that are designated as hedging instruments, performed in the context of the reassessment of the Group's hedging strategies.

As described in note 2.2.3 of the consolidated financial statements for the year ended 31 December 2021, the Group manages its exposure to interest rate risk by forming hedging relationships within the hedge accounting framework, as well as economic hedges for which hedge accounting is not applied.

Accordingly, in response to the heightened market volatility since the beginning of 2022, the Group discontinued hedge accounting by revoking the designation of certain hedging relationships, which had been initiated in a low interest rate environment and fulfilled

to a significant extent their hedging purpose. The derivative positions were gradually liquidated over the first quarter of 2022, while in parallel new economic hedges were initiated to manage the Group's interest rate exposures on a portfolio level. Such economic hedges were eventually liquidated towards the end of the second quarter of 2022, since Management, in the context of its updated hedging strategy and risk management objectives, decided to enter into new interest rate swaps designated upon their inception as hedging instruments for which hedge accounting is applied. The realized gains from the aforementioned actions on the Group's hedging strategies, due to the increase in interest rates, amounted to approximately € 390 million.

Furthermore, the significant movements in interest and inflation rates, especially in longer tenors exacerbated the ineffectiveness of certain long-dated hedging relationships for which different discount rates apply to the hedged item and hedging instrument. For these hedging relationships, the hedge ratio fell outside the designated range of 80%-125% allowed by IAS39, both prospectively and retrospectively, leading to the mandatory discontinuance of the hedge accounting since the relationships no longer met the hedge accounting criteria. Accordingly, the Group proceeded to the gradual unwinding of the related interest rate swaps, realizing approximately € 160 million gains, while at the same time entered into new ones of shorter tenor, so as to ensure hedge effectiveness going forward.

As at 30 September 2022, the net carrying value of the derivatives with the Hellenic Republic amounted to a liability of € 449 million (31 December 2021: € 1,100 million asset).

15. Loans and advances to customers

	30 September 2022	31 December 2021
	€ million	€ million
Loans and advances to customers at amortised cost
- Gross carrying amount	43,086	40,815
- Impairment allowance	(1,696)	(1,872)
Carrying Amount	41,390	38,943
Loans and advances to customers at FVTPL	20	23
Total	41,409	38,967

The table below presents the carrying amount of loans and advances to customers per business unit and per stage as at 30 September 2022:

					31 December
		30 September 2022			2021
			Lifetime ECL -
	12-month ECL	Lifetime ECL	Stage 3 and
	Stage 1	Stage 2	POCI ⁽¹⁾	Total amount	Total amount
	€ million	€ million	€ million	€ million	€ million
Loans and advances to customers at
amortised cost
Mortgage lending:
- Gross carrying amount	6,849	2,837	566	10,252	10,105
- Impairment allowance	(17)	(150)	(222)	(389)	(325)
Carrying Amount	6,832	2,687	344	9,863	9,780
Consumer lending:
- Gross carrying amount	2,697	372	282	3,351	3,242
- Impairment allowance	(38)	(46)	(206)	(289)	(340)
Carrying Amount	2,659	327	76	3,062	2,902
Small Business lending:
- Gross carrying amount	2,529	824	469	3,822	3,753
- Impairment allowance	(27)	(70)	(234)	(332)	(326)
Carrying Amount	2,501	754	235	3,490	3,427
Wholesale lending: ⁽²⁾
- Gross carrying amount	23,011	1,561	1,089	25,661	23,716
- Impairment allowance	(70)	(74)	(542)	(686)	(881)
Carrying Amount	22,941	1,487	547	24,975	22,835
Total loans and advances to customers at AC
- Gross carrying amount	35,085	5,595	2,406	43,086	40,815
- Impairment allowance	(152)	(341)	(1,203)	(1,696)	(1,872)
Carrying Amount	34,933	5,254	1,202	41,390	38,943
Loans and advances to customers at FVTPL
Carrying Amount ⁽³⁾				20	23
Total				41,409	38,967

(1) As at 30 September 2022, POCI loans of € 45 million gross carrying amount (of which € 43 million included in non performing exposures) and € 6 million impairment allowance are presented in 'Lifetime ECL – Stage 3 and POCI' (31 December 2021: € 44 million gross carrying amount and € 6 million impairment allowance).

(2) Includes € 4,838 million related to the senior notes of Pillar, Cairo and Mexico securitizations, which have been categorized in Stage 1.

(3) Includes € 9.9 million related to the mezzanine notes of the Pillar, Cairo and Mexico securitizations.

Ιn line with the regulatory framework and Single Supervisory Mechanism's (SSM) requirements for Non-Performing Exposures' (NPE) management, in March 2022, the Group submitted its NPE Management Strategy for 2022-2024, along with the annual NPE stock targets at both Bank and Group level. The plan envisages the decrease of the Group's NPE ratio at 5.8% at the end of 2022 and below 5% in 2024.

In the context of its NPE management strategy, the Group is contemplating another NPE securitization transaction (project 'Solar'), as part of a joint initiative with the other Greek systemic banks initiated since 2018, in order to decrease further its NPE ratio and strengthen its balance sheet de-risking. In addition, the Group targets to the prudential and accounting derecognition of the underlying corporate loan portfolio from its balance sheet by achieving a Significant Risk Transfer (SRT) and including 'Solar' securitization under the Hellenic Asset Protection Scheme (HAPS), thus the senior note of the securitization to become entitled to the Greek State's guarantee. In parallel, the Management along with the other participating banks have initiated actions towards the disposal of the majority stake of the mezzanine and junior notes to be issued in the context of the above-mentioned securitization.

Accordingly, as of 30 June 2022, the Group classified the underlying corporate loan portfolio as held for sale, while the remeasurement of the portfolio's expected credit losses, in accordance with the Group's accounting policy for the impairment of financial assets, had no significant impact in impairment losses from loans and advances to customers. The impairment loss was calculated by reference to the estimated fair value of the notes to be retained by the Group upon the completion of transaction and the expected consideration to be received by the sale of mezzanine and junior notes. As at 30 September 2022, the carrying amount of the aforementioned loan portfolio reached € 71 million, comprising loans with gross carrying amount of € 272 million, which carried

an impairment allowance of € 201 million. Furthermore, the impairment allowance of the letters of guarantee included in the underlying portfolio reached € 1 million and was presented in "liabilities of disposal groups classified as held for sale" (note 13).

As at 30 September 2022, following the classification of project "Solar" underlying loan portfolio as held for sale, the Group's NPE stock amounted to € 2.4 billion (31 December 2021: € 2.8 billion) driving the NPE ratio to 5.6% (31 December 2021: 6.8%), while the NPE coverage ratio stood at 72.7% (31 December 2021: 69.2%).

16. Investment securities

		30 September 2022
	12-month ECL	Lifetime ECL	Lifetime ECL
	Stage 1	Stage 2	Stage 3	Total
	€ million	€ million	€ million	€ million
Debt securities at amortised cost
- Gross carrying amount	8,575	10	29	8,614
- Impairment allowance	(11)	(1)	(8)	(20)
Debt securities at FVOCI	4,023	93	-	4,116
Total	12,587	102	21	12,710
Debt securities at FVTPL				1
Equity securities at FVOCI				48
Equity securities at FVTPL				225
Total Investment securities				12,984
			31 December 2021
		12-month ECL	Lifetime ECL
		Stage 1	Stage 2	Total
		€ million	€ million	€ million
Debt securities at amortised cost
- Gross carrying amount		4,672	-	4,672
- Impairment allowance		(6)	-	(6)
Debt securities at FVOCI
		6,456	9	6,465
Total		11,122	9	11,131
Debt securities at FVTPL				1
Equity securities at FVOCI				44

The investment securities per category are analyzed as follows:

	30 September 2022
		Investment
	Investment	securities at	Investment
	securities at FVOCI	amortised cost	securities at FVTPL	Total
	€ million	€ million	€ million	€ million
Debt securities
- Greek government bonds	1,181	4,198	-	5,379
- Greek government treasury bills	190	-	-	190
- Other government bonds	1,608	1,901	-	3,509
- Other issues	1,137	2,495	1	3,633
	4,116	8,594	1	12,711
Equity securities	48	-	225	273
Total	4,164	8,594	226	12,984

Equity securities at FVTPL 140 Total Investment securities 11,316

		31 December 2021
		Investment
	Investment	securities at	Investment
	securities at FVOCI	amortised cost	securities at FVTPL	Total
	€ million	€ million	€ million	€ million
Debt securities
- Greek government bonds	1,872	3,159	-	5,031
- Greek government treasury bills	277	-	-	277
- Other government bonds	2,475	519	-	2,994
- Other issues	1,841	988	1	2,830
	6,465	4,666	1	11,132
Equity securities	44	-	140	184
Total	6,509	4,666	141	11,316

As at 30 September 2022, Eurobank S.A. holds a 12.6% participation in Hellenic Bank Public Company Limited, a financial institution located in Cyprus. The above investment is aligned with the overall strategy of the Group to further strengthen its presence in all key markets in which retains a strategic interest and thus has been designated at FVOCI. Its fair value as at 30 September 2022 amounted to € 48 million (2021: € 44 million).

Following the significant worldwide restrictions and sanctions introduced against Russia, resulting in significant uncertainty on the ability of the Russian debt issuers to repay their obligations on foreign currency-denominated bonds, as of 31 March 2022 the Group has classified its Russian debt exposures as credit impaired. Following the repayment of a Russian government bond of carrying value € 12 million in April 2022, the carrying value of the said debt exposures was € 21 million as at 30 September 2022, including an impairment allowance of € 8 million.

17. Group composition

17.1 Shares in subsidiaries

The following is a listing of the Company's subsidiaries as at 30 September 2022, included in the interim consolidated financial statements for the period ended 30 September 2022:

		Percentage	Country of
Name	Note	holding	incorporation	Line of business
Eurobank S.A.		100.00	Greece	Banking
Be Business Exchanges S.A. of Business Exchanges		98.01	Greece	Business-to-business e-commerce,
Networks and Accounting and Tax Services				accounting, tax and sundry services
Eurobank Asset Management Mutual Fund Mngt		100.00	Greece	Mutual fund and asset management
Company Single Member S.A.
Eurobank Equities Investment Firm Single Member S.A.		100.00	Greece	Capital markets and advisory services
Eurobank Leasing Single Member S.A.		100.00	Greece	Leasing
Eurobank Factors Single Member S.A.		100.00	Greece	Factoring
Hellenic Post Credit S.A.	c	100.00	Greece	Credit card management and other services
Herald Greece Single Member Real Estate		100.00	Greece	Real estate
development and services S.A. 1
Herald Greece Single Member Real Estate		100.00	Greece	Real estate
development and services S.A. 2
Standard Single Member Real Estate S.A.		100.00	Greece	Real estate
Cloud Hellas Single Member Ktimatiki S.A.		100.00	Greece	Real estate
Piraeus Port Plaza 1 Single Member Development S.A.		100.00	Greece	Real estate
(Under liquidation) Anchor Hellenic Investment Holding		100.00	Greece	Real estate
Single Member S.A.
Athinaiki Estate Investments Single Member S.A.		100.00	Greece	Real estate
Piraeus Port Plaza 2 Single Member Development S.A.		100.00	Greece	Real estate
Piraeus Port Plaza 3 Single Member Development S.A.		100.00	Greece	Real estate
Tenberco Real Estate Single Member S.A.		100.00	Greece	Real estate
Value Touristiki Single Member Development S.A.		100.00	Greece	Real estate
Village Roadshow Operations Hellas S.A.⁽¹⁾		100.00	Greece	Cinema entertainment services
Eurobank Bulgaria A.D.		99.99	Bulgaria	Banking
IMO Property Investments Sofia 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
Eurobank Cyprus Ltd		100.00	Cyprus	Banking
ERB New Europe Funding III Ltd		100.00	Cyprus	Finance company
Foramonio Ltd		100.00	Cyprus	Real estate
NEU 03 Property Holdings Ltd		100.00	Cyprus	Holding company
NEU Property Holdings Ltd		100.00	Cyprus	Holding company

Name	Note	Percentage holding	Country of incorporation	Line of business
Lenevino Holdings Ltd		100.00	Cyprus	Real estate
Rano Investments Ltd		100.00	Cyprus	Real estate
Neviko Ventures Ltd		100.00	Cyprus	Real estate
Zivar Investments Ltd		100.00	Cyprus	Real estate
Amvanero Ltd		100.00	Cyprus	Real estate
Revasono Holdings Ltd		100.00	Cyprus	Real estate
Volki Investments Ltd		100.00	Cyprus	Real estate
Adariano Investments Ltd		100.00	Cyprus	Real estate
Elerovio Holdings Ltd		100.00	Cyprus	Real estate
Sagiol Ltd		100.00	Cyprus	Holding company
Macoliq Holdings Ltd		100.00	Cyprus	Holding company
Senseco Trading Limited		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
ERB Lux Immo S.A.		100.00	Luxembourg	Real estate
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
ERB IT Shared Services S.A.		100.00	Romania	Informatics data processing
IMO Property Investments Bucuresti S.A.		100.00	Romania	Real estate services
IMO-II Property Investments S.A.		100.00	Romania	Real estate services
Eliade Tower S.A.⁽¹⁾		99.99	Romania	Real estate
Retail Development S.A.		99.99	Romania	Real estate
Seferco Development S.A.		99.99	Romania	Real estate
Eurobank Direktna a.d.		70.00	Serbia	Banking
ERB Leasing A.D. Beograd-in Liquidation		85.15	Serbia	Leasing
IMO Property Investments A.D. Beograd		100.00	Serbia	Real estate services
Reco Real Property A.D. Beograd		100.00	Serbia	Real estate
ERB Hellas Plc	f	100.00	United Kingdom	Special purpose financing vehicle
Karta II Plc		-	United Kingdom	Special purpose financing vehicle
Astarti Designated Activity Company		-	Ireland	Special purpose financing vehicle
ERB Recovery Designated Activity Company		-	Ireland	Special purpose financing vehicle

(1) The company has been classified as a held for sale subsidiary (note 13).

The following entities are not included in the interim consolidated financial statements mainly due to immateriality:

(i) the Group's special purpose financing vehicles and the related holding entities, which are dormant and/or are under liquidation: Themeleion III Holdings Ltd, Themeleion IV Holdings Ltd, Themeleion Mortgage Finance Plc, Themeleion II Mortgage Finance Plc, Themeleion III Mortgage Finance Plc, Themeleion IV Mortgage Finance Plc, Themeleion V Mortgage Finance Plc, Themeleion VI Mortgage Finance Plc, Anaptyxi APC Ltd and Byzantium II Finance Plc.

(ii) the holding entity of Karta II Plc: Karta II Holdings Ltd.

(iii) dormant entity: Enalios Real Estate Development S.A.

(iv) entities controlled by the Group pursuant to the terms of the relevant share pledge agreements: Finas S.A., Rovinvest S.A., Societe Anonyme for trade of veterinary products, pet food and accessories single member S.A. and Promivet S.A.

(a) IMO 03 E.A.D., Bulgaria

In February 2022, the Bank disposed of its participation interest of 100% in IMO 03 E.A.D. (which as of 31 December 2021 was classified as held for sale) to a third party for a cash consideration of € 5.8 million. The resulting loss on the disposal was immaterial.

(b) (Under liquidation) Real Estate Management Single Member S.A., Greece

In February 2022, the liquidation of the company was completed.

(c) Hellenic Post Credit S.A., Greece

In February 2022, the Bank reached an agreement with the other shareholder for the acquisition of the remaining 50% of the share capital of Hellenic Post Credit S.A. Further information in relation to the transaction is provided in note 30.

(d) Staynia Holdings Limited, Cyprus

In February 2022, the liquidation of the company was decided. In June 2022, the distribution of the company's surplus assets to the Bank (its sole shareholder) was completed with an immaterial effect on the Group's income statement.

(e) ERB Istanbul Holding A.S. in liquidation, Turkey

In June 2022, the liquidation of the company was completed. The Group recognized a) € 76.3 million loss in "Other income/(expenses)", arising mainly from the recyclement of foreign currency losses of € 75.9 million, previously recorded in other comprehensive income, to the income statement and b) € 2.5 million tax expense on the liquidation proceeds.

(f) ERB Hellas Plc, United Kingdom

In June 2022, the liquidation of the company was decided.

(g) Vouliagmeni Residence Single Member S.A., Greece

In March 2022, the Bank signed an agreement for the sale of its participation interest of 100% in Vouliagmeni Residence Single Member S.A. to a third party. On the basis of the said agreement, the company was classified as held for sale since 31 March 2022 and an impairment loss of € 0.7 million was recognised in the income statement line "Other impairment losses and provisions". In July 2022, the sale of the company was completed for a cash consideration of € 9.7 million with no effect on the Group's income statement.

17.2 Consolidated balance sheet and income statement of Eurobank S.A.

Eurobank Holdings Group comprises Eurobank S.A. Group, which constitutes its most significant component and the Company's directly held subsidiary Be Business Exchanges S.A. The consolidated balance sheet and income statement of Eurobank S.A. including explanatory information regarding the main differences with those of Eurobank Holdings are set out below:

	30 September	31 December
	2022	2021
	€ million	€ million
ASSETS
Cash and balances with central banks	16,165	13,515
Due from credit institutions	1,011	2,510
Securities held for trading	75	120
Derivative financial instruments	2,485	1,949
Loans and advances to customers	41,409	38,967
Investment securities	12,984	11,316
Investments in associates and joint ventures	183	267
Property and equipment	816	815
Investment property	1,372	1,492
Intangible assets	293	269
Deferred tax assets	4,259	4,422
Other assets	2,219	2,060
Assets of disposal groups classified as held for sale	162	146
Total assets	83,433	77,848
LIABILITIES
Due to central banks	11,596	11,663
Due to credit institutions	2,228	973
Derivative financial instruments	2,286	2,394
Due to customers	55,754	53,232
Debt securities in issue	3,195	2,554
Other liabilities	1,958	1,358
Liabilities of disposal groups classified as held for sale	55	109
Total liabilities	77,072	72,283
EQUITY
Share capital	3,941	3,941
Reserves and retained earnings	2,326	1,528
Equity attributable to shareholders of the Bank	6,267	5,469
Non controlling interests	94	96
Total equity	6,361	5,565
Total equity and liabilities	83,433	77,848

	Nine months ended 30 September
	2022	2021
	€ million	€ million
Net interest income	1,081	1,000
Net banking fee and commission income	323	252
Income from non banking services	71	73
Net trading income/(loss)	661	(4)
Gains less losses from investment securities	(19)	71
Other income/(expenses)	300	(1)
Operating income	2,417	1,391
Operating expenses	(674)	(644)
Profit from operations before impairments,
provisions and restructuring costs	1,743	747
Impairment losses relating to loans and
advances to customers	(204)	(319)
Other impairment losses and provisions	(48)	(25)
Restructuring costs	(77)	(13)
Share of results of associates and joint ventures	16	14
Profit before tax	1,430	404
Income tax	(318)	(111)
Net profit	1,112	293
Net profit/(loss) attributable to non controlling interests	(0)	0
Net profit attributable to shareholders	1,112	293

As at 30 September 2022, the total assets and total liabilities of Eurobank S.A. Group are € 5 million lower and € 60 million higher than those of Eurobank Holdings Group, respectively. Hence, the total equity of Eurobank S.A. Group amounting to € 6,361 million is € 65 million lower than that of Eurobank Holdings Group mainly due to the intercompany assets and liabilities of Eurobank Holdings and its direct subsidiary with the Bank. The net profit attributable to shareholders of Eurobank S.A. Group for the period amounting to € 1,112 million is € 6 million higher than that of Eurobank Holdings Group mainly due to € 7 million higher operating expenses of Eurobank Holdings Group.

18. Investments in associates and joint ventures

The following is the listing of the Group's associates and joint ventures as at 30 September 2022:

	Country of		Group's
Name	incorporation	Line of business	share
Femion Ltd	Cyprus	Special purpose investment vehicle	66.45
(Under liquidation) Tefin S.A.	Greece	Dealership of vehicles and machinery	50.00
Sinda Enterprises Company Ltd	Cyprus	Special purpose investment vehicle	48.00
Global Finance S.A.⁽¹⁾	Greece	Investment financing	33.82
Rosequeens Properties Ltd⁽²⁾	Cyprus	Special purpose investment vehicle	33.33
Odyssey GP S.a.r.l.	Luxembourg	Special purpose investment vehicle	20.00
Eurolife FFH Insurance Group Holdings S.A.⁽¹⁾	Greece	Holding company	20.00
Alpha Investment Property Commercial Stores S.A.	Greece	Real estate	30.00
Peirga Kythnou P.C.	Greece	Real estate	50.00
doValue Greece Loans and Credits Claim Management S.A.	Greece	Loans and Credits Claim Management	20.00
Perigenis Business Properties S.A.	Greece	Real estate	18.90

(1) Eurolife Insurance group (Eurolife FFH Insurance Group Holdings S.A. and its subsidiaries) and Global Finance group (Global Finance S.A. and its subsidiaries) are considered as the Group's associates.

(2) Rosequeens Properties Ltd (including its subsidiary Rosequeens Properties SRL) is considered as a Group's joint venture.

Grivalia Hospitality S.A., Luxembourg

On 24 March 2022, the Bank signed a Share Purchase Agreement for the disposal of a 5.1% shareholding in the Group's joint venture Grivalia Hospitality S.A. for a total consideration of € 15.9 million. As a result of the transaction, the Bank's shareholding in Grivalia

Hospitality S.A. decreased from 25% to 19.9% and in combination with the terms of the revised Shareholders' Agreement signed with the other shareholders on the same date, the Bank ceased to have joint control over the entity and hence has discontinued the use of the equity method of accounting. Following the aforementioned sale, as of 31 March 2022, the retained interest in the entity has been measured as a financial asset at FVTPL with any change in the carrying amount to be recognized in the income statement. Accordingly, the difference between: (i) the fair value of the retained interest on the aforementioned date, amounting to € 71.2 million and the proceeds received from the said partial disposal and (ii) the previous carrying amount of the investment in the entity under the equity method amounting to € 54.2 million, resulted in a total gain of € 32.3 million, net of the recyclement of € 0.6 million foreign currency translation losses (previously recognized in other comprehensive income), that was recognised in the income statement in "Other income/(expenses)".

Information Systems Impact S.A., Greece

In July 2022, the Bank disposed of its participation interest in Information SystemsImpact S.A. to a third party for a cash consideration of € 3.9 million. The resulting gain on disposal amounted to € 1.1 million.

Intertech S.A. - International Technologies, Greece

In September 2022, the Bank disposed of its participation interest in Intertech S.A. - International Technologies (which since its acquisition was classified as held for sale) to a third party (note 13).

Post balance sheet event

Sinda Enterprises Company Ltd, Cyprus

In October 2022, the Bank disposed of its participation interest in Sinda Enterprises Company Ltd to a third party.

19. Property and equipment and Investment property

The carrying amounts of property and equipment and investment property are analyzed as follows:

	30 September	31 December
	2022	2021
	€ million	€ million
Land, buildings, leasehold improvements	457	458
Furniture, equipment, motor vehicles	49	43
Computer hardware, software	87	84
Right of use of assets ⁽¹⁾	223	230
Total property and equipment	816	815
Investment Property ⁽²⁾	1,372	1,492
Total	2,188	2,307

(1) The respective lease liabilities are presented in "other liabilities" (note 25).

(2) In the period ended 30 September 2022, the carrying amount of investment property decreased by € 120 million, mainly due to disposals with a resulting gain of ca. € 10 million that was recognised in "Other income/(expenses)".

In the period ended 30 September 2022, the Group recognized rental income of € 67 million from investment properties in the income statement line 'income from non banking services' (30 September 2021: € 70 million).

The valuation methods and key assumptions required under each method, based on which the carrying value of investment property portfolio is determined, as well as the sensitivity analysis on key assumptions, are described in the consolidated financial statements for the year ended 31 December 2021. The Group will continue to monitor closely the effect of the economic environment on the valuation of its investment properties.

20. Other assets

	30 September	31 December
	2022	2021
	€ million	€ million
Receivable from Deposit Guarantee and Investment Fund	706	706
Repossessed properties and relative prepayments	593	597
Pledged amount for a Greek sovereign risk financial guarantee	234	235
Balances under settlement ⁽¹⁾	43	18
Deferred costs and accrued income	112	104
Other guarantees	206	128
Income tax receivable ⁽²⁾	36	30
Other assets	294	247
Total	2,224	2,065

(1) Includes settlement balances with customers relating to banking and brokerage activities. (2) Includes withholding taxes, net of provisions.

As at 30 September 2022, other assets net of provisions, amounting to € 294 million include, among others, receivables related to (a) prepayments to suppliers, (b) public entities, (c) property management activities, (d) legal cases and (e) the sale of the Bank's Merchant Acquiring Business (note 13).

21. Due to central banks

30 September	31 December
2022	2021
€ million	€ million
11,596	11,663

As at 30 September 2022, the Group had borrowed € 11.8 billion under the TLTRO III refinancing program of the European Central Bank (ECB), whereas the respective net income that is recognized under interest expense amounted to € 67 million, for the period ended 30 September 2022. On the basis that the Group met the required lending thresholds, the above income was calculated under the program's more favorable interest rates that provides for an interest rate of -1% for the special interest period from 24 June 2020 to 23 June 2022 and the applicable ECB average deposit facility rate (DFR), thereafter.

Following ECB's decision in late October 2022, the applicable average DFR (a) for the period up to 22 November 2022, is set as the average DFR from the start of the operation until that date and (b) for the period from 23 November 2022 onwards, is set as the average DFR from that date until the maturity or early repayment of each TLTRO III operation.

22. Due to credit institutions

	30 September	31 December
	2022	2021
	€ million	€ million
Secured borrowing from credit institutions	604	270
Borrowings from international financial and similar institutions	671	619
Deposits from banks received as collateral ⁽¹⁾	815	27
Current accounts and settlement balances with banks	120	54
Interbank takings	18	3
Total	2,228	973

(1) It refers to collateral received for derivative financial instruments under master netting arrangements.

As at 30 September 2022, secured borrowing from credit institutions refers to repurchase agreements mainly with foreign institutions. In addition, borrowings from international financial and similar institutions include borrowings from European Investment Bank, European Bank for Reconstruction and Development and other similar institutions.

23. Due to customers

	30 September	31 December
	2022	2021
	€ million	€ million
Savings and current accounts	43,686	40,601
Term deposits	11,809	12,367
Repurchase agreements	201	200
Total	55,696	53,168

As at 30 September 2022, due to customers for the Greek and International operations amounted to € 38,300 million and € 17,396 million, respectively (31 December 2021: € 37,016 million and € 16,152 million, respectively).

24. Debt securities in issue

	30 September	31 December
	2022	2021
	€ million	€ million
Securitisations	553	552
Subordinated notes (Tier 2)	955	948
Medium-term notes (EMTN)	1,685	1,052
Total	3,193	2,552

Securitisations

The carrying value of the class A asset backed securities issued by the Bank's special purpose vehicles Karta II plc and Astarti DAC as at 30 September 2022, amounted to € 303 million and € 250 million, respectively.

Tier 2 Capital instruments

In January 2018, Eurobank Ergasias S.A. issued Tier 2 capital instruments of face value of € 950 million, in replacement of the preference shares which had been issued in the context of the first stream of Hellenic Republic's plan to support liquidity in the Greek economy under Law 3723/2008. The aforementioned instruments have a maturity of ten years (until 17 January 2028) and pay fixed nominal interest rate of 6.41%, that shall be payable semi-annually.

Covered bonds

Financial disclosures required by the Act 2620/28.08.2009 of the Bank of Greece in relation to the covered bonds issued, are available at the Bank's website (Investor Report for Covered Bonds Programs).

Medium-term notes (EMTN)

In June 2022, the Bank proceeded with the issue of a preferred senior debt with a nominal value of € 500 million, of which € 7 million were held by a Bank's subsidiary. The bond, which is listed in the Luxembourg Stock Exchange's Euro MTF market, matures in March 2025 and is callable at par in March 2024, offering a coupon of 4.375% per annum.

This transaction is another step towards the implementation of Eurobank's medium-term strategy to meet its MREL requirements. The proceeds from the issue will be used for Eurobank's general funding purposes.

Further information about the issue is provided in the relevant announcement published in the Bank's website on 1 June 2022.

During the period ended 30 September 2022, the Bank proceeded with the issue and the partial redemption of medium term notes of face value of € 225 million and € 6 million, respectively, which were designated for Group's customers.

25. Other liabilities

	30 September	31 December
	2022	2021
	€ million	€ million
Balances under settlement⁽¹⁾	394	374
Lease liabilities	242	248
Deferred income and accrued expenses	185	157
Other provisions	63	95
ECL allowance for credit related commitments	52	48
Standard legal staff retirement indemnity obligations	23	23
Employee termination benefits	80	64
Sovereign risk financial guarantee	34	36
Income taxes payable	19	15
Deferred tax liabilities (note 12)	28	26
Trading liabilities	687	43
Other liabilities	151	229
Total	1,958	1,358

(1) Includes settlement balances relating to bank cheques and remittances, credit card transactions, other banking and brokerage activities.

As at 30 September 2022, other liabilities amounting to € 151 million mainly consist of payables relating with (a) suppliers and creditors, (b) contributions to insurance organizations, (c) duties and other taxes and d) acquisition obligation.

As at 30 September 2022, other provisions amounting to € 63 million (31 December 2021: € 95 million) mainly include: (a) € 28 million for outstanding litigations against the Group (note 30) and (b) € 32 million for other operational risk events, mainly referring to a provision for an outstanding tax litigation case in relation to the sale of former Romanian subsidiaries.

As at 30 September 2022, trading liabilities amounting to € 687 million (31 December 2021: € 43 million) reflect the higher levels of short positions in debt instruments, entered into in the context of the Group's economic hedging strategies, aiming to manage on a pool basis market driven risks that derive from asset positions. For the period ended 30 September 2022, the gain recognized in net trading income from the aforementioned short positions amounted to € 120 million.

For the period ended 30 September 2022, an amount of € 48 million has been recognised in the Group's income statement for employee termination benefits mainly in respect of the new Voluntary Exit Scheme (VES) that was launched by the Group in February 2022 for eligible units in Greece and offered to employees over a specific age limit. The new VES is implemented through either lumpsum payments or long-term leaves during which the employees will be receiving a percentage of a monthly salary, or a combination thereof. The estimated saving in personnel expenses amounts to € 16 million on an annual basis.

26. Share capital, share premium and treasury shares

As at 30 September 2022, the par value of the Company's shares is € 0.22 per share (31 December 2021: € 0.22). All shares are fully paid. The movement of share capital, share premium and treasury shares is as follows:

	Share capital € million	Treasury shares € million	Net € million	Share premium € million	Treasury shares € million	Net € million
Balance at 1 January 2022 Share capital increase following the	816	(0)	816	8,056	(1)	8,055
exercise of share options	0	-	0	0	-	0
Purchase of treasury shares	-	(0)	(0)	-	(1)	(1)
Sale of treasury shares	-	0	0	-	2	2
Balance at 30 September 2022	816	(0)	816	8,056	(0)	8,056

The following is an analysis of the movement in the number of shares issued by the Company:

	Number of shares
	Issued	Treasury
	Shares	Shares	Net
Balance at 1 January 2022	3,709,161,852	(784,540)	3,708,377,312
Share capital increase following the exercise of share options	1,515,656	-	1,515,656
Purchase of treasury shares	-	(1,485,257)	(1,485,257)
Sale of treasury shares	-	2,231,875	2,231,875
Balance at 30 September 2022	3,710,677,508	(37,922)	3,710,639,586

Share capital increase

Following the exercise of share options granted to key executives of the Group under the current share options' plan (see below), and by virtue of the decision of the Board of Directors of the Company on 30 August 2022, the Company's share capital increased by € 333,444.32 through the issue of 1,515,656 new common voting shares, of a nominal value of € 0.22 per share and exercise price of € 0.23 per share. The difference between the exercise price of the new shares and their nominal value, net of the expenses directly attributable to the equity transaction, amounted to € 2,136 and was recorded in the account "Share premium". Following the above increase, as at 30 September 2022, the share capital of the Company amounts to € 816,349,051.76, divided into 3,710,677,508 common shares with a nominal value of € 0.22 each. The new shares were listed on the Athens Exchange on 14 September 2022.

Offsetting of equity accounts

On 21 July 2022, the Annual General Meeting (AGM) of the shareholders of Eurobank Holdings approved, among others, the offsetting of a) the total of the account "Corporate law Reserves" amounting to € 6,919.3 million and b) part of the account "Share Premium" amounting to €6,894.4 million with accumulated losses of equivalent value amounting to €13,813.7 million, included in the account "Retained earnings/(losses)". The above offsetting does not affect the Company's own and regulatory capital and was approved by the competent Supervisory Authorities in October 2022.

Treasury shares

In the ordinary course of business, the Company's subsidiaries, except for the Bank, may acquire and dispose of treasury shares. According to paragraph 1 of Article 16c of Law 3864/2010, during the period of the participation of the HFSF in the share capital of the Company, the Company is not permitted to purchase treasury shares without the approval of the HFSF.

In addition, as at 30 September 2022 the number of the Company's shares held by the Group's associates in the ordinary course of their insurance and investing activities was 64,163,790 in total (31 December 2021: 64,163,790).

Share options

Under the share options' plan approved by the AGM of the shareholders of Eurobank Holdings in 2020, 12,374,561 share options were granted to key executives of the Group in July 2021 at an exercise price of € 0.23. The options are exercisable in portions, annually during the period from 2022 to 2025. Each portion may be exercised wholly or partly and converted into shares at the executives' option, provided they remain employed by the Group until the first available exercise date. A retention period of one year applies to the first portion of the share options vesting one year after the grant date.

From the share options exercisable in 2022, 1,515,656 options were exercised during the period from 27 July 2022 up to 5 August 2022, resulting in the issue of an equal number of new common voting shares.

The share options outstanding as at 30 September 2022 and their expiry dates are presented in the following table:

	Share options
Expiry date ⁽¹⁾	30 September 2022
2023	5,557,226
2024	4,539,975
2025	525,840
Weighted average remaining contractual life of share options outstanding at the end of the period	1.19

(1) Based on the earliest contractual exercise date.

In accordance with Law 4941/2022 which amended Law 3864/2010, the specific provisions with respect to the remuneration restrictions applicable to certain key executives, are in force until the end of 2022.

The terms of the aforementioned share options, along with the valuation method and the inputs used for their measurement, are presented in Note 39 of the consolidated financial statements for the year ended 31 December 2021.

27. Fair value of financial assets and liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price). When a quoted price for an identical asset or liability is not observable, fair value is measured using another valuation technique that is appropriate in the circumstances and maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect assumptions that market participants would use when pricing financial instruments, such as quoted prices in active markets for similar instruments, interest rates and yield curves, implied volatilities and credit spreads.

The Group's financial instruments measured at fair value or at amortized cost for which fair value is disclosed are categorized into the three levels of the fair value hierarchy based on whether the inputs to the fair values are observable or unobservable, as follows:

• (a) Level 1-Financial instruments measured based on quoted prices (unadjusted) in active markets for identical financial instruments that the Group can access at the measurement date. A market is considered active when quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and represent actually and regularly occurring transactions. Level 1 financial instruments include actively quoted debt instruments held or issued by the Group, equity and derivative instruments traded on exchanges, as well as mutual funds that have regularly and frequently published quotes.
• (b) Level 2-Financial instruments measured using valuation techniques with inputs, other than level 1 quoted prices, that are observable either directly or indirectly, such as: i) quoted prices for similar financial instruments in active markets, ii) quoted prices for identical or similar financial instruments in markets that are not active, iii) inputs other than quoted prices that are directly or indirectly observable, mainly interest rates and yield curves observable at commonly quoted intervals, forward exchange rates, equity prices, credit spreads and implied volatilities obtained from internationally recognized market data providers and iv) other unobservable inputs which are insignificant to the entire fair value measurement. Level 2 financial instruments include over the counter (OTC) derivatives, less liquid debt instruments held or issued by the Group and equity instruments.
• (c) Level 3-Financial instruments measured using valuation techniques with significant unobservable inputs. When developing unobservable inputs, best information available is used, including own data, while at the same time market participants' assumptions are reflected (e.g. assumptions about risk). Level 3 financial instruments include unquoted equities or equities traded in markets that are not considered active, certain OTC derivatives, loans and advances to customers including notes from securitizations of loan portfolios originated by the Group and recognized in financial assets and debt securities issued by the Group.

Financial instruments carried at fair value

The fair value hierarchy categorization of the Group's financial assets and liabilities measured at fair value is presented in the following tables:

	30 September 2022
	Level 1	Level 2	Level 3	Total
	€ million	€ million	€ million	€ million
Securities held for trading	75	-	-	75
Investment securities at FVTPL	78	14	134	226
Derivative financial instruments	1	2,476	8	2,485
Investment securities at FVOCI	3,933	231	-	4,164
Loans and advances to customers mandatorily at FVTPL	-	-	20	20
Financial assets measured at fair value	4,087	2,721	162	6,970
Derivative financial instruments	0	2,286	-	2,286
Trading liabilities	687	-	-	687
Financial liabilities measured at fair value	687	2,286	-	2,973

	31 December 2021
	Level 1	Level 2	Level 3	Total
	€ million	€ million	€ million	€ million
Securities held for trading	119	-	-	119
Investment securities at FVTPL	78	16	47	141
Derivative financial instruments	0	1,949	0	1,949
Investment securities at FVOCI	6,212	297	-	6,509
Loans and advances to customers mandatorily at FVTPL	-	-	23	23
Financial assets measured at fair value	6,409	2,262	70	8,741
Derivative financial instruments	1	2,393	-	2,394
Trading liabilities	43	-	-	43
Financial liabilities measured at fair value	44	2,393	-	2,437

The Group recognizes transfers into and out of the fair value hierarchy levels at the beginning of the quarter in which a financial instrument's transfer was effected. During the period ended 30 September 2022, the Group transferred OTC derivative instruments of € 9 million from Level 2 to Level 3 following the assessment on the significance of the CVA adjustment to their entire fair value measurement, calculated based on internal rating models.

Reconciliation of Level 3 fair value measurements

	30 September 2022 € million
Balance at 1 January	70
Transfers into Level 3	9
Transfers out of Level 3	0
Additions, net of disposals and redemptions (note 18) ⁽¹⁾	78
Total gain/(loss) for the period included in profit or loss	5
Foreign exchange differences and other	(0)
Balance at 30 September	162

(1) Including capital returns on equity instruments.

Group's valuation processes and techniques

The Group's processes and procedures governing the fair valuations are established by the Group Market Counterparty Risk Sector in line with the Group's accounting policies. The Group uses widely recognized valuation models for determining the fair value of common financial instruments that are not quoted in an active market, such as interest and cross currency swaps, that use only observable market data and require little management estimation and judgment. Specifically, observable prices or model inputs are usually available in the market for listed debt and equity securities, exchange-traded and simple over-the-counter derivatives. Availability of observable market prices and model inputs reduces the need for management judgment and estimation and also reduces the uncertainty associated with determining fair values.

Where valuation techniques are used to determine the fair values of financial instruments that are not quoted in an active market, they are validated against historical data and, where possible, against current or recent observed transactions in different instruments, and periodically reviewed by qualified personnel independent of the personnel that created them. All models are certified before they are used and models are calibrated to ensure that outputs reflect actual data and comparative market prices. Fair values' estimates obtained from models are adjusted for any other factors, such as liquidity risk or model uncertainties, to the extent that market participants would take them into account in pricing the instrument. Fair values also reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and the counterparty, where appropriate.

Valuation controls applied by the Group may include verification of observable pricing, re-performance of model valuations, review and approval process for new models and/or changes to models, calibration and back-testing against observable market transactions, where available, analysis of significant valuation movements, etc. Where third parties' valuations are used for fair value measurement, these are reviewed in order to ensure compliance with the requirements of IFRS 13.

The fair values of OTC derivative financial instruments are estimated by discounting expected cash flows using market interest rates at the measurement date. Counterparty credit risk adjustments and own credit risk adjustments are applied to OTC derivatives, where

appropriate. Bilateral credit risk adjustments consider the expected cash flows between the Group and its counterparties under the relevant terms of the derivative instruments and the effect of the credit risk on the valuation of these cash flows. As appropriate in circumstances, the Group considers also the effect of any credit risk mitigating arrangements, including collateral agreements and master netting agreements on the calculation of credit risk valuation adjustments (CVAs). CVA calculation uses probabilities of default (PDs) based on observable market data such as credit default swaps (CDS) spreads, where appropriate, or based on internal rating models. The Group applies similar methodology for the calculation of debit-value-adjustments (DVAs), when applicable. Where valuation techniques are based on internal rating models and the relevant CVA is significant to the entire fair value measurement, such derivative instruments are categorized as Level 3 in the fair value hierarchy. A reasonably possible change in the main unobservable input (i.e. the recovery rate), used in their valuation, would not have a significant effect on their fair value measurement.

The Group determines fair values for debt securities held using quoted market prices in active markets for securities with similar credit risk, maturity and yield, quoted market prices in non active markets for identical or similar financial instruments, or using discounted cash flows method.

Unquoted equity instruments at FVTPL under IFRS 9 are estimated mainly (i) using third parties' valuation reports based on investees' net assets, where management does not perform any further significant adjustments, and (ii) net assets' valuations, adjusted where considered necessary.

Loans and advances to customers including notes from securitizations of loan portfolios originated by the Group with contractual cash flows that do not represent solely payments of principal and interest (SPPI failures), are measured mandatorily at fair value through profit or loss. Quoted market prices are not available as there are no active markets where these instruments are traded. Their fair values are estimated on an individual loan basis by discounting the future expected cash flows over the time period they are expected to be recovered, using an appropriate discount rate or by reference to other comparable assets of the same type that have been transacted during a recent time period. Expected cash flows, which incorporate credit risk, represent significant unobservable input in the valuation and as such, the entire fair value measurement is categorized as Level 3 in the fair value hierarchy.

Financial instruments not measured at fair value

The following tables present the carrying amounts and fair values of the Group's financial assets and liabilities which are not carried at fair value on the balance sheet:

	30 September 2022
	Carrying	Fair
	amount	value
	€ million	€ million
Loans and advances to customers	41,390	40,278
Investment securities at amortised cost	8,594	7,376
Financial assets not measured at fair value	49,984	47,654
Debt securities in issue	3,193	3,020
Financial liabilities not measured at fair value	3,193	3,020
	31 December 2021
	Carrying
	amount	Fair value
	€ million	€ million
Loans and advances to customers	38,943	38,369
Investment securities at amortised cost	4,666	4,313
Financial assets not measured at fair value	43,609	42,682
Debt securities in issue	2,552	2,539
Financial liabilities not measured at fair value	2,552	2,539

The assumptions and methodologies underlying the calculation of fair values of financial instruments not measured at fair value, are in line with those used to calculate the fair values for financial instruments measured at fair value. Particularly:

(a) Loans and advances to customers including notes from securitizations of loan portfolios originated by the Group: quoted market prices are not available as there are no active markets where these instruments are traded. The fair values are estimated by

discounting future expected cash flows over the time period they are expected to be recovered, using appropriate risk-adjusted rates. Loans are grouped into homogenous assets with similar characteristics, as monitored by Management, such as product, borrower type and delinquency status, in order to improve the accuracy of the estimated valuation outputs. In estimating future cash flows, the Group makes assumptions on expected prepayments, product spreads and timing of collateral realization. The discount rates for loans to customers incorporate inputs for expected credit losses and interest rates, as appropriate;

• (b) Investment securities measured at amortized cost: the fair values are determined using prices quoted in an active market when these are available. In other cases, fair values are determined using quoted market prices for securities with similar credit risk, maturity and yield, quoted market prices in non active markets for identical or similar financial instruments, or by using the discounted cash flows method; and
• (c) Debt securities in issue: the fair values are determined using quoted market prices, if available. If quoted prices are not available, fair values are determined based on third party valuations, quotes for similar debt securities or by discounting the expected cash flows at a risk-adjusted rate, where the Group's own credit risk is determined using inputs indirectly observable, i.e. quoted prices of similar securities issued by the Group or other Greek issuers.

For other financial instruments, which are short term or re-price at frequent intervals (cash and balances with central banks, due from credit institutions, due to central banks, due to credit institutions and due to customers), the carrying amounts represent reasonable approximations of fair values.

28. Interest Rate Benchmark reform – IBOR reform

During 2022, the Group's IBOR transition program managed successfully the transition of IBOR rates (CHF, GBP, JPY, 1W and 2M USD and EUR Libor) that ceased after 31 December 2021 to the new risk-free rates (RFRs). In particular, most of the Group's financial instruments, such as loans to customers and deposit contracts, referencing the abovementioned IBOR rates, have been successfully transitioned to the new RFRs on their first repricing date up to 30 September 2022, while any remaining contracts will transition by the end of the year, on their next roll date. For derivatives, the migration to the new RFRs was performed through the activation of their fallback clauses. Further information regarding the Group's IBOR transition program is provided in note 5.2.4 of the consolidated financial statements for the year ended 31 December 2021.

Following the transition of the majority of IBOR rates as described above, the Group focuses on the exposures referencing the remaining USD LIBOR tenors ahead of 30 June 2023 scheduled cessation date, while it continues to closely monitor and assess all relevant market and regulatory developments.

29. Cash and cash equivalents and other information on interim cash flow statement

For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturities of three months or less:

	30 September	31 December
	2022	2021
	€ million	€ million
Cash and balances with central banks (excluding mandatory and collateral
deposits with central banks)	15,197	12,644
Due from credit institutions	544	505
Total	15,744	13,149

Other (income)/losses on investment securities presented in operating activities are analyzed as follows:

	30 September 2022	30 September 2021
	€ million	€ million
Amortisation of premiums/discounts and accrued interest	11	52
(Gains)/losses from investment securities	19	(71)
Dividends	(1)	(1)
Total	29	(20)

In the period ended 30 September 2022, changes in debt securities in issue arising from accrued interest and amortisation of debt issuance costs amount to € 27 million loss (30 September 2021: € 20 million loss).

In the period ended 30 September 2022, other adjustments of € 315 million mainly include a) € 325 million gain resulting from the sale of Eurobank's merchant acquiring business to Worldline (note 13), b) € 32 million gain resulting from the disposal of a 5.1% shareholding in the Group's former joint venture Grivalia Hospitality S.A. and the measurement on the disposal date of the retained interest in the entity as a financial asset at FVTPL (note 18) and c) € 76 million loss from the recyclement of currency translation reserves due to liquidation of ERB Istanbul Holding A.S. (note 17.1).

30. Contingent liabilities and commitments

The Group presents the credit related commitments it has undertaken within the context of its lending related activities into the following three categories: a) financial guarantee contracts, which refer to guarantees and standby letters of credit that carry the same credit risk as loans (credit substitutes), b) commitments to extend credit, which comprise firm commitments that are irrevocable over the life of the facility or revocable only in response to a material adverse effect and c) other credit related commitments, which refer to documentary and commercial letters and other guarantees of medium and low risk according to the Regulation No 575/2013/EU.

Credit related commitments are analyzed as follows:

	30 September	31 December
	2022	2021
	€ million	€ million
Financial guarantee contracts	1,621	1,068
Commitments to extend credit	3,307	1,572
Other credit related commitments	924	634
Total	5,852	3,274

The credit related commitments within the scope of IFRS 9 impairment requirements amount to € 9.6 billion (31 December 2021: € 6.8 billion), including revocable loan commitments of € 3.7 billion (31 December 2021: € 3.6 billion), while the corresponding allowance for impairment losses amounts to € 52 million (31 December 2021: € 48 million).

In addition, the Group has issued a sovereign risk financial guarantee of € 0.23 billion (31 December 2021: € 0.24 billion) for which an equivalent amount has been deposited under the relevant pledge agreement (note 20).

Legal proceedings

In the period ended 30 September 2022, the Bank concluded an agreement for the acquisition of the remaining 50% of Hellenic Post Credit S.A share capital (note 17.1), settled by offsetting receivables it held from the other shareholder. As a result, related provisions of € 34 million which had been recognized, were used to offset the respective receivables, leading to a significant decrease of the provisions for legal proceedings outstanding against the Group, which as at 30 September 2022 amounted to € 28 million (note 25) (31 December 2021: € 64 million).

Furthermore, in the normal course of its business, the Group has been involved in a number of legal proceedings, which are either at still a premature or at an advanced trial instance. The final settlement of these cases may require the lapse of a certain time so that the litigants exhaust the legal remedies provided for by the law. Management, is closely monitoring the developmentsto the relevant cases and, having considered the advice of the Legal Services General Division, does not expect that there will be an outflow of resources and therefore does not acknowledge the need for a provision.

31. Post balance sheet events

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

Note 2 - Basis of preparation and principal accounting policies

• Note 13 Disposal groups classified as held for sale
• Note 18 Investments in associates and joint ventures
• Note 21 Due to central banks
• Note 26 Share capital, share premium and treasury shares

32. Related parties

Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) isthe parent company of Eurobank S.A. (the Bank).

The Board of Directors (BoD) of Eurobank Holdings is the same as the BoD of the Bank and part of the key management personnel (KMP) of the Bank providesservicesto Eurobank Holdings according to the terms of the relevant agreement between the two entities. As at 30 September 2022, the percentage of the Company's ordinary shares with voting rights held by the Hellenic Financial Stability Fund (HFSF) stands at 1.40%. The HFSF is considered to have significant influence over the Company pursuant to the provisions of the Law 3864/2010, as in force, including the amendments under law 4941/2022, and the Tripartite Relationship Framework Agreement (TRFA) between the Bank, the Company and the HFSF signed on 23 March 2020 and amended on 3 February 2022.

Fairfax Group, which holds 32.99% of Eurobank Holdings voting rights as of 30 September 2022 (31 December 2021: 33%), is considered to have significant influence over the Company.

In January 2022, an occupational insurance fund ("Institution for occupational retirement provision-occupational insurance fund Eurobank's Group personnel" henceforth "the Fund") was established as a not-for-profit legal entity under Law 4680/2020, for the benefit of the employees of the Company, the Bank and certain other Greek entities of the Group, which constitute the sponsoring employers of the Fund. Accordingly, in line with IAS 24 Related Parties, the Fund is considered to be related party to the Group.

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 outstanding balances of the transactions with (a) Fairfax group, (b) the key management personnel (KMP) and the entities controlled or jointly controlled by KMP and (c) other related parties, as well as the relating income and expenses are as follows:

		30 September 2022			31 December 2021
		KMP and Entities
		controlled or			KMP and Entities
		jointly			controlled or
	Fairfax	controlled by	Other Related	Fairfax	jointly controlled	Other Related
	Group⁽²⁾ ⁽⁴⁾	KMP⁽¹⁾	Parties⁽³⁾	Group⁽²⁾	by KMP⁽¹⁾	Parties⁽³⁾
	€ million	€ million	€ million	€ million	€ million	€ million
Loans and advances to customers	62.82	4.74	28.37	0.01	4.95	26.52
Other assets	0.03	-	88.89	0.37	0.19	76.04
Due to customers	25.59	21.77	118.24	0.24	21.90	80.68
Debt securities in issue	81.09	0.85	101.37	-	0.20	-
Other liabilities	0.20	0.04	24.42	-	0.32	40.86
Guarantees issued	1.75	-	0.05	-	0.01	4.65
Guarantees received	-	0.01	-	-	0.01	-
		Nine months ended 30 September 2022			Nine months ended 30 September 2021
Net interest income	(0.77)	-	(3.61)	0.20	-	(1.96)

(0.77)	-	(3.61)	0.20	-	(1.96)
0.01	0.10	9.83	-	0.12	9.68
(0.36)	-	(43.72)	0.03	-	(64.16)
				(11.53)	(14.48)
				6.87 (11.53) (5.17) 3.07

(1) Includes the key management personnel of the Group and their close family members.

(2) The balances with the Group's associate Eurolife FFH Insurance Group Holdings S.A., which is also a member of Fairfax Group, are presented in the column other related parties.

(3) Other related parties include associates, joint ventures and as of the first half of 2022 the aforementioned Eurobank Group's personnel occupational insurance fund. In particular, as at 30 September 2022 the outstanding balances of transactions with the Fund refer only to deposits of € 11 million received from the Fund.

(4) As of 24 March 2022, the Bank ceased to have joint control over its former joint venture Grivalia Hospitality S.A. (note 18). In addition, in the third quarter of 2022, Fairfax Group obtained control over Grivalia Hospitality S.A. Hence, as at 30 September 2022, the company is considered to be a related party of the Group.

For the period ended 30 September 2022, there were no material transactions with the HFSF.

For the period ended 30 September 2022, an impairment of € 0.9 million (30 September 2021: an impairment of € 0.2 million) has been recorded against loan balances with Group's associates and joint ventures, while the respective impairment allowance amounts

to € 0.5 million (31 December 2021: € 0.4 million). In addition, as at 30 September 2022, the fair value adjustment for loans to Group's associates and joint ventures measured at FVTPL amounts to € 0.4 million.

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 € 5.37 million (30 September 2021: € 5.26 million) and long-term employee benefits of € 0.89 million (30 September 2021: € 0.85 million). Additionally, the Group has recognized € 0.70 million expense relating with equity settled share based payments (30 September 2021: € 0.28 million) (note 26). Furthermore, as at 30 September 2022, the defined benefit obligation for the KMP amounts to € 1.57 million (31 December 2021: € 1.48 million), while the respective cost for the period through the income statement amounts to € 0.09 million (30 September 2021: € 0.06 million).

33. Board of Directors

The Board of Directors (BoD) was elected by the Annual General Meeting (AGM) of the Shareholders held on 23 July 2021 for a three years term of office that will expire on 23 July 2024, prolonged until the end of the period the AGM for the year 2024 will take place.

Following the aforementioned AGM decision, the BoD was constituted as a body at the BoD meeting of 23 July 2021, as follows:

G. Zanias	Chairman, Non-Executive Member
G. Chryssikos	Vice Chairman, Non-Executive Member
F. Karavias	Chief Executive Officer
S. Ioannou	Deputy Chief Executive Officer
K. Vassiliou	Deputy Chief Executive Officer
A. Athanasopoulos	Deputy Chief Executive Officer
B.P. Martin	Non-Executive Member
A. Gregoriadi	Non-Executive Independent Member
I. Rouvitha Panou	Non-Executive Independent Member
R. Kakar	Non-Executive Independent Member
J. Mirza	Non-Executive Independent Member
C. Basile	Non-Executive Independent Member
E. Deli	Non-Executive Member (HFSF representative under Law 3864/2010)

Athens, 9 November 2022