National Bank of Greece2012年年度報告.pdf

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1、Profit and loss account data(millions)Profit and loss account data(millions)Net interest income3,3653,8434,148Net fee&commission income495494610Earned insurance premia net of claims&commissions13114776Net trading income/(loss)&results from investment securities(588)(29)(138)Net other income(33)(84)(

2、56)Total operating income3,3714,3714,640Total operating expenses*(2,335)(2,541)(2,512)Operating profit/(loss)before provisions1,0361,8302,128Loan loss provisions(2,532)(2,185)(1,365)Provisions for claims on the Greek Government not included in PSI+(418)(1,254)(85)Share of profit of equity method inv

3、estments212Profit/(loss)before tax and minorities(1,911)(1,608)679Taxes(158)63(197)Minorities4(19)(35)Non-cash charges(27)(30)(41)Income from the sale of Finans Pension140-Impairment of Greek Government Bonds due to PSI+(after tax)(187)(10,750)-Attributable profit/(loss)(2,139)(12,344)406Balance she

4、et data(millions)Balance sheet data(millions)Due from banks(net)4,3184,6363,321Loans and advances to customers(net)69,13571,49677,262Investment securities&financial assets 13,74513,37222,090Other assets17,60117,22818,072Total assets104,799106,732120,745Due to banks33,97234,10829,899Due to customers5

5、8,72259,54468,039Debt securities in issue&other borrowed funds3,7723,4404,432Other liabilities10,2219,8937,470Total shareholder equity(1,888)(253)10,905Total equity and liabilities104,799106,732120,745Key figures and ratiosKey figures and ratiosEarnings(losses)per share()(2.12)(12.93)0.46Dividend pe

6、r ordinary share()-Cost:Income66%58%54%Net interest margin3.7%3.7%3.9%Tier I CAD ratio*7.8%11.5%13.1%Tier I CAD ratio*9.2%12.6%13.7%Staff numbers(year end)35,07834,69836,866Credit ratingsLong-termShort-termCredit ratingsLong-termShort-termMoodysCaa2NPStandard&Poors CCCCFitch RatingsB-B*Including oth

7、er operating charges.*The funds of 2012 have been recalculated on the basis of Act No 13/28.3.2013 of the Executive Committee of the BoG.The capitaladequacy ratios for 2012 and 2011 include the sum of 9,756 million.201220112010201220112010GROUP FINANCIAL HIGHLIGHTS2LETTERS TO SHAREHOLDERSLETTERS TO

8、SHAREHOLDERS4BOARD OF DIRECTORSBOARD OF DIRECTORS8NBG SENIOR MANAGEMENTNBG SENIOR MANAGEMENT10FINANCIAL REVIEW 2012FINANCIAL REVIEW 201212NBG SHARENBG SHARE16SHAREHOLDER STRUCTURESHAREHOLDER STRUCTURE18SECTION 1:FINANCIAL ENVIRONMENT191.1INTERNATIONAL DEVELOPMENTS201.2THE GREEK ECONOMY231.3GREEK BAN

9、KING SECTOR27SECTION 2:ACTIVITIES OF THE GROUP IN GREECE292.1RETAIL BANKING30Mortgage lending30Consumer lending31Credit cards32Lending to small businesses332.2BUSINESS BANKING34Corporate lending34Project finance35Lending to medium-sized businesses36Leasing37Shipping 38Global transaction services39Ma

10、naging loans in arrears392.3ASSET MANAGEMENT40Deposits Investment products40Mutual funds41Private banking422.4INVESTMENT BANKING43Treasury43Brokerage 44Private equity45Custodian services472.5STRATEGY FOR OPERATIONS UPGRADE47Branch network47Alternative delivery channels49Technology upgrade512.6NBG CU

11、STOMER OMBUDSMAN 52CONTENTS32.7HUMAN RESOURCES532.8CORPORATE SOCIAL RESPONSIBILITY55SECTION 3:INTERNATIONAL ACTIVITIES OF THE GROUP593.1THE GROUPS INTERNATIONAL PRESENCE603.2FINANSBANK SA623.3UNITED BULGARIAN BANK(UBB)643.4STOPANSKA BANKA AD653.5BANCA ROMANEASCA SA663.6VOJVODJANSKA BANKA AD673.7BANK

12、A NBG ALBANIA SH.A683.8NATIONAL BANK OF GREECE(CYPRUS)683.9NBG BANK MALTA LTD693.10SOUTH AFRICAN BANK OF ATHENS(SABA)693.11INTERNATIONAL BRANCHES(EGYPT,THE UK)70SECTION 4:OTHER NBG GROUP ACTIVITIES714.1INSURANCE724.2HOTEL BUSINESS754.3REAL ESTATE764.4COMPUTING SERVICES77SECTION 5:RISK MANAGEMENT AND

13、 CORPORATE GOVERNANCE795.1GROUP RISK MANAGEMENT80Market risk81Credit risk83Counterparty risk90Country risk93Operational risk945.2REGULATORY COMPLIANCE965.3INTERNAL AUDIT985.4CORPORATE GOVERNANCE99SUMMARY FINANCIAL STATEMENTSSUMMARY FINANCIAL STATEMENTS101INDEPENDENT AUDITORS REPORT TO SHAREHOLDERSIN

14、DEPENDENT AUDITORS REPORT TO SHAREHOLDERS102SUMMARY FIANANCIAL DATA 2012SUMMARY FIANANCIAL DATA 2012104AUDIT COMMITTEE REPORT TO SHAREHOLDERSAUDIT COMMITTEE REPORT TO SHAREHOLDERS110INVITATION TO THE BANKS ANNUAL GENERAL MEETING OF SHAREHOLDERSINVITATION TO THE BANKS ANNUAL GENERAL MEETING OF SHAREH

15、OLDERS114CONTACT INFORMATIONCONTACT INFORMATION1184LETTER TO SHAREHOLDERSDear Shareholder,For Greece and its banking system,2012 marked a turning point.The necessary and unavoidable decision torestructure the sovereign debt transposed the greater part of the burden of the Greek economic rescue proce

16、ssonto the banks.The restructuring of the domestic banking system,which was essential in order for it to cope withthe extremely stressed conditions,has brought about radical changes to its structure and operation.While therecapitalization of the banking system was immediately put into motion and the

17、 necessary funds were securedthrough the countrys support program,the restoration of the capital position of Greek banks took second place tothe avalanche of financial and political developments that dominated the greater part of the year.The protracted negotiations required to complete the first re

18、view of the second economic support package servedto amplify uncertainty,and forced the government sector to operate under economically difficult conditions for muchof the year,as the scheduled economic support was delayed by over five months.A part of the funding needs wasfinanced by Treasury bills

19、the refinancing of which was largely shouldered by Greek bankswhile governmentspending was further slashed,thereby fuelling,in combination with the political uncertainty and contracting domesticdemand,the recessionary dynamic.Since the end of 2012 there have been clear signs of improvement in econom

20、ic sentiment,reflecting the significantprogress that has been made in fiscal adjustment overperformance as regards the deficit target for the first timein many yearsand the rapid correction of external imbalances,which translated into a substantial contraction inthe current account deficit,which wil

21、l be close to balance in 2013.Indeed,the greater part of lost competitiveness,in cost terms,has been regained,while there are also strong signs of recovery in the deposit base(sustained inQ1.2013),mainly due to returning funds that had fled the domestic banking system due to uncertainty.Judging byth

22、e markets and our partners,it is clear that there is now greater confidence in Greeces ability to meet its obligationsand achieve a primary surplus,most probably from 2013 onwards.As far as implementation of structural changesand,above all,reversing the recessionary spiral of the economy are concern

23、ed,the challenges remain significant.A series of leading indicators,however,appear to suggest that a turnaround is not far away.It is reasonable to expect the turnaround in economic performance to start with the banking sector,in view of thefact that banks are the key source of financing for economi

24、c growth.To play this role effectively,banks need toensure that two key fundamentals are firmly in place:a satisfactory capital base,and sufficient liquidity.Thesuccessful completion of the recapitalization process by the countrys core banks should resolve the first of thesetwo issues,which since th

25、e outbreak of the global financial crisis has been the key focus of interest of regulatoryand supervisory authorities.The second crucial issueliquidityis recovering gradually,with the return of substantial volumes of deposits intothe Greek banking system following the elections last summer and,at a

26、more intense pace,from December 2012onwards,as the Economic Support Program for Greece was put back on track,and as the crisis in the Cypriotbanking system unwound.In addition,banks have regained access to relatively cheaper liquidity from the ECB,enabling them to shift from the Emergency Liquidity

27、Assistance facility which they had to resort to for a large partof the year.In the meantime,Greek banks have been scaling down their funding from the ECB,and moreover,theynow hold high quality debt instruments with which to draw liquidity either from the ECB or the markets.Likewise,substantial progr

28、ess has been made in the restructuring of the banking sector,both in terms of operatingcosts and the divestment of non-core assets.Note also that NBG and other Greek banks are engaged in more activeliability management in the context of measures designed to enhance their capital.The recent recapital

29、ization of systemic banks secures the key tool they need in order to meet the challenges involvedin revitalizing the Greek economy and improving the business climate.Indeed,a more positive story is finallybecoming evident.Only with strong foundations will Greek banks be able to play their part in sh

30、aping the future ofthe economy.With the support of its shareholders and staff,NBG will stand at the forefront of this national endeavour,true to itshistory.George P.ZaniasChairman of the Board56Dear Shareholder,For much of 2012,the country and its economy laboured under extreme economic and politica

31、l uncertainty,whilethe modus operandi of key economic institutions experienced significant changes.The intensification of the crisisleft deep marks on the Greek economy,making the implementation of radical restructuring of its productivestructures inevitable.The unprecedented challenges faced by Gre

32、ece on the fiscal level sent shock waves across the entire spectrum ofthe domestic banking business.Banks were required to manage the massive losses arising from the restructuringof the Greek sovereign debt,runs on deposits,and deterioration in asset quality.NBG had to take on a series of immense ch

33、allenges:?The fifth consecutive year of recession led domestic NPLs to the high level of 24.3%in Q1.2013 from 13%at theend of 2011.In 2012,new loan delinquencies accelerated by 10 pps,leading to formation of provisions of circa2 billion for the domestic portfolio.Note that for the years 2010-2012,NB

34、G set aside some 5 billion inprovisions for doubtful debts,thereby maintaining a high coverage ratio of 54%.It is significant that NBG hasmanaged to absorb much of the losses arising from NPLs through its core profitability.?Liquidity conditions were severely stressed,posting some improvement only i

35、n the second half of the yearwhen the countrys funding program was put back on track.For NBG(as for the other domestic banks)thismeant a sharp increase in funding costs since it was forced to resort to costly emergency liquidity via theEmergency Liquidity Assistance(ELA),in view of the fact that the

36、 country was rated“Selective Default”.Weresponded to this challenge by deposit gathering,deleveraging,and promoting the funding autonomy of oursubsidiaries abroad.?The pressure on core profitability made it more imperative than ever to intensify our cost cutting measures.It is noteworthy that NBG ha

37、s succeeded in reducing domestic operating costs by approximately 20%cumulatively since the beginning of the crisis in 2009.It is also worth noting that our staff has accepted thesehardships.?The cost cutting measures were applied throughout the Group,with the exception of the Groups Turkishsubsidia

38、ry Finansbank,which continues to post dynamic growth and contributes impressively to the Groupsprofitability.In the Southeast European countries,against a backdrop of high inflation,costs were actuallycompressed by 8%in 2012.The discernible improvement in the economic climate and the recognition of

39、the progress made by Greece in thespheres of competitiveness and structural reforms are gradually helping to stabilize the conditions in which weoperate.Positive signs are already emerging:with the return of deposits and the slowdown in the pace of increaseof loan delinquencies.To conclude,the proce

40、ss of restoring the Banks capital base entered its final phase in the spring of 2013,achallengingin terms of scale and importanceendeavour.The moves to repurchase hybrid securities,as well aspreference shares(ADSs)issued by the Bank in the US,serve to complement our efforts to strengthen our capital

41、base.Despite these headwinds,we are concentrating on the road ahead.We are carefully weighing the options open tous going forward,while adhering to our key strategic pillars:?to defend our capital position;?to improve the structure and cost of liquidity;?to efficiently manage loans in arrears;?to en

42、hance profitable business lines and contain costs.It is important that we focus on these actions,so that the sacrifices made so far by our shareholders,our workforce,and the Greek people more generally,will produce the desired result.For this reason we firmly believe that,together,we shall succeed i

43、n this endeavour to revive the economy and protect the interests of the Bank.Alexandros G.Tourkolias Chief Executive Officer78CHAIRMAN OF THE BOARD(Non-executive member)George Zanias Professor of Economics at the Athens University of Economics and Business EXECUTIVE MEMBERSAlexandros Tourkolias Chie

44、f Executive Officer Petros Christodoulou Deputy CEONON-EXECUTIVE MEMBERSIoannis Giannidis Professor at the University of Athens School of Law and Legal CounsellorEfthymios Katsikas Employees RepresentativeStavros Koukos Employees Representative,President of OTOEINDEPENDENT NON-EXECUTIVE MEMBERSStefa

45、nos VavalidisFormer member of the Board of the European Bank for Reconstruction&Development(EBRD)Spyridon TheodoropoulosCEO,Chipita SAAlexandra Papalexopoulou-BenopoulouMember of the Board of Titan Cement SAPetros SabatacakisEconomistMaria(Marily)FrangistaManaging Director,Franco Compania Naviera SA

46、REPRESENTATIVE OF THE HELLENIC REPUBLIC(Law 3723/2008)Alexandros MakridisChairman of the Board&CEO of Chryssafidis SAREPRESENTATIVE OF THE HELLENIC FINANCIAL STABILITY FUND(HFSF)(Law 3864/2010)Charalambos MakkasEconomistBOARD OF DIRECTORS 9NotesNotesThe current BoD,whose term expires in 2016,was ele

47、cted(except for the members appointed by the Hellenic Republicand the Hellenic Financial Stability Fund)by the 2nd Repeat Extraordinary General Meeting of Shareholders held on 23November 2012,and was constituted into a body by resolution of the Board meeting of 23 November 2012.In 2012,there were th

48、e following changes in Board membership:?Mr George Zanias resigned from his position as member of the Board on 25 May 2012.?Mr Charalambos Makkas was appointed to the Board as representative of the HFSF on 11 June 2012.?Messrs Ioannis Panagopoulos and Avraam Traiantafyllidis resigned from their posi

49、tion as Board members at themeeting held on 21 June 2012.At the same meeting,Messrs Efthymios Katsikas and Mr Stavros Koukos wereelected to the Board as directors/employees representatives in replacement of the said directors who resigned.?The Chairman,Mr Vassilios Rapanos,the CEO,Mr Apostolos Tamva

50、kakis and Deputy CEO Leonidas Theoklitosresigned from the Board at the meeting held on 28 June 2012.At the same meeting,in replacement of the saiddirectors,Mr Alexandros Tourkolias was elected as Chairman and CEO,and Mr Petros Christodoulou as the soleDeputy CEO.?Mr George Zanias was elected Chairma

51、n of the Board at the meeting held on 9 July 2012.At the same meetingMr Alexandros Tourkolias was elected CEO.?Mr Anthimos Thomopoulos resigned from his position as Board member at the meeting held on 8 August 2012.?On 9 April 2013,H.E.the Metropolitan of Ioannina Theoklitos resigned from his positi

52、on as non-executive Boardmember.In 2012,the Banks Board met 28 times in total.14.3%(2 out of 14)members of the Banks Board are female.SECRETARY OF THE BOARD&BOARD COMMITTEESMichael Frousios Director of BoD Secretariat&Shareholder Services10EXECUTIVE COMMITTEEChairman:Alexandros Tourkolias-CEOMembers

53、:Petros Christodoulou Deputy CEODamianos CharalampidisChief of Operations Paul Mylonas General Manager of Strategy&International OperationsAndreas AthanassopoulosGeneral Manager of Retail Banking Dimitrios DimopoulosGeneral Manager of Corporate BankingMember without voting right:Miltiadis Stathopoul

54、osGeneral Counsel&General Manager of Corporate Governance GENERAL MANAGERSAristotelis KarytinosGeneral Manager of Group Real EstateMichael OratisGeneral Manager,Group Risk Management DivisionMarianna PolitopoulouGeneral Manager,Group Retail Collections Nelly TzakouGeneral Manager,Group Head of Opera

55、tions,Business Processes&ITLeonidas Fragkiadakis General Manager of Treasury&Global MarketsNBG SENIOR MANAGEMENT11ASSISTANT GENERAL MANAGERSAnthony Antonopoulos Assistant General Manager,Group Human ResourcesPanagiotis GeorgiouAssistant General Manager,Branch NetworkPanos GoutakisAssistant General M

56、anager of Investment BankingAndreas Exarhos Assistant General Manager,Retail BankingIoanna Katzilieri-ZourAssistant General Manager,Group Marketing and CommunicationsAngelos Katsikas Assistant General Manager of Business Processes Spiros MavrogalosAssistant General Manager,Group Procurement&Administ

57、rative SupportVassilis MitrakosAssistant General Manager,NBG Staff Insurance Fund Telemachos PalaiologosAssistant General Manager of SecurityTheofanis PanagiotopoulosAssistant General Manager of Corporate Banking Petros FourtounisGroup Chief Audit ExecutiveDimitris Frangetis Chief Credit OfficerNiko

58、s ChristodoulouGroup CIO12Group losses in 2012 amounted to 2,139.5 million.These results reflect,above all,the deterioration inasset quality in Greece in the wake of extreme politicaluncertainty and the ongoing recession,leading to apeak in loan delinquencies.The decline in domestic netinterest inco

59、me,due to the higher cost of raising fundsunder the Emergency Liquidity Assistance mechanism(ELA),plus the reduction in the borrowing rates linkedto Euribor,also had an adverse effect on the Groupsbottom line.The Group has responded to this highly stressedeconomic environment by adjusting its busine

60、ss model,and taking initiatives to fortify its capital position andbalance sheet.Actions in this context included:therepurchase of part of the covered bonds and hybridsecurities(Core Tier I capital of 302 million);the saleof a majority stake in the Groups insurance franchisein Turkey(profit before t

61、ax of 157.3 million);largereduction in domestic operating expenses andstrengthening of the balance sheet with the formationof provisions amounting to 2.5 billion.The Groupsstrategy was accompanied by significant costreductions in SE Europe(Bulgaria,Romania,Serbia,Albania,and the Former Yugoslav Repu

62、blic ofMacedonia)and even stronger earnings fromFinansbank,which posted a net profit of 668 millionin 2012.The large reduction in domestic operating expenseswas the result of a coordinated series of actions,including the signing of a Collective Labour Agreementproviding for a reduction in employee s

63、alaries,andongoing cost control at every level.Note that staffexpenses have declined by 19%over the past threeyears,while general expenses and depreciation andamortization fell at the same rate.Efforts to cut backFINANCIAL REVIEW 201213on operating costs continued in SE Europe also,withan annual red

64、uction of 8.2%,and a cumulative reductionof 15%since the end of 2009.In Turkey,the increase inoperating expenses remained moderate(up 13.5%,excluding non-recurring expenses),and wascommensurate with the rate of inflation,the substantialexpansion of the branch network,and the dynamic risein operating

65、 income.As regards liquidity,our strategy of self-fundedsubsidiaries abroad over the past two years hasresulted in the closing of the funding gap of our SEEurope subsidiaries and independent access byFinansbank to the global markets.Particularlyencouraging developments in the last quarter of theyear

66、 included the lifting of Eurosystem restrictions onaccepting Greek debt securities and collateral,theenhancement of assets that can be offered as collateralto the ECB through HFSF securities,and the gradualinflow of circa 2.0 billion of domestic deposits,whichbegan after the elections.As a result of

67、 thesedevelopments,we anticipate significant strengtheningof net interest income in the quarters ahead.The deleveraging of the loan book led to animprovement in the liquidity ratio(loans-to-deposits)to 106.7%in December 2012,while in Greece the loan-to-deposit ratio stood at 99.0%,on the back of ret

68、urningdeposits in the second half of the year.There was alsoa significant 19 pp improvement in the loan-to-depositratio in SE Europe,which by the end of December 2012had dropped to 113.4%.The Greek economy faced unprecedented macroeconomicchallenges against a backdrop of financial and politicaluncer

69、tainty that served to drag out the recession(GDPdown by 6.4%year on year in Q4.2012,and down by morethan 20%since 2009)and push up unemployment tolevels not witnessed in the past 45 years(26.5%at theend of 2012),thus leading to deterioration in the qualityof banks loan portfolios.The Banks ratio of+

70、90 dpd to total loans stood at 23.1%,compared with 13.0%in December 2011.The rapid riseof new loan delinquencies in Greece was caused by thesignificant deterioration in the countrys macro-economic environment as well as by political instabilityand two rounds of elections that rekindled talk of theco

71、untrys exit from the euro.Accordingly,NBG steppedup its provisioning levels,forming total provisions for2012 of 2,026 million.The+90 dpd coverage ratioreached 53.3%at the end of 2012,which is deemed highin view of the solid level of collateral associated withthese loans.In Q4.2012 there was a signif

72、icant declinein the growth rate of delinquencies,and this trendcontinued in Q1.2013.14Net interest income(1,782.5 million)in the domesticmarket declined by 30.1%year on year.Besides the keyimpact of the rise in the cost of Eurosystem funding andthe decline in Euribor rates,interest income was alsoaf

73、fected by the deleveraging of the loan book,thefallout from the bond exchange programme under thePSI+,and the unprecedented rise in non-performingloans.The reversal of this climate can now be discernedbeginning with the gradual return of deposits,thesignificant reduction in funding costs with the sw

74、itchback to ECB funding,and the decline in the rate of newloan delinquencies in Q4.2012 and through the firstquarter of 2013.The net profit of Finansbank increased by 82%year onyear to TL1,545 million(668.1 million)on the back ofthe strong performance of net interest income(up39.5%)and fees and comm

75、issions(up 26.9%).In 2012,NII grew by 134 bps to 654 bpsmainly due to thedecline in funding costs.The sale of a 51%stake in itsinsurance business Finans Pension in Q4.2012strengthened the results of the Turkish group by circa157 million.Growth in operating costs(excluding non-recurringexpenses)was c

76、ontained at 13.5%year on year,despitethe banks network expansion program and thepersistence of inflation at high levels.As a result,Finansbanks efficiency(cost/income)ratio improved to42.0%as compared with 51.9%the previous year.Total lending at Finansbank amounted to TL42.5 billion(18.1 billion),up

77、 15.5%year on year.+90 dpd loansincreased marginally to 5.5%compared with 4.8%in2011,as growth in credit expansion in Turkey wascontained in order to avert an overheating of theeconomy.Despite the strong lending growth,the banks CapitalAdequacy Ratio(CAR)stood at the robust level of 19.2%,the highes

78、t among its peers,strengthened by the saleof its insurance business in Q4.2012 and its growingprofitability.Finansbanks deposit pool was further enhanced as itstotal deposits grew by 20.2%year on year(including theTL2.9 billion bond issue).The growth of the loan bookby 15.5%tracking credit expansion

79、 in the Turkishbanking marketled to a reduction in the loan-to-deposit ratio to 108.5%,compared with 113.2%in 2011,including the TL2.9 billion bond issue.The successful raising of funds from the global capitalmarkets was a key component in the banks policy todiversify its funding sources.Accordingly

80、,Finansbank15raised funds totalling USD188 million and 212 millionat Libor/Euribor+1.35%by means of a syndicated loanin which 21 banks participated.In addition,the banksuccessfully issued on the European market bondsamounting to USD350 million with a 5.15%coupon,notwithstanding the increased supply

81、of similar bondissues by Turkish banks;it also securitized businessclaims worth circa USD150 million at Libor/Euribor+350 bps(approx.).In SE Europe,stagnant economic activity and theslowdown in credit growth led to a decline in totallending after provisions by 8.2%year on year to 5.7billion by the e

82、nd of 2012.The 7.4%growth in depositsover the same period contributed to a furtherimprovement in the loan-to-deposit ratio by 19.0 pps to113.4%by the end of the year.In addition,it should benoted that by the end of Q3.2012 the funding gap of theGroups units in the region had been completely closed.N

83、et interest income posted a substantial decline of24.6%year on year as a result of higher funding costs,cuts in lending rates,and the impact of deleveraging.In 2012,operating expenses were further compressed,declining by 8.2%,year on year.Profits beforeprovisions totalled 118.1 million,vs.173.4 mill

84、ion in2011,posting a decline of 31.9%.Despite the adverse macroeconomic climate,the rateof deterioration in asset quality in SE Europe showssigns of stabilization,with a slowdown in new NPLssince the beginning of 2013(just 22 million in Q4.2012compared with 104 million in Q1.2012).Indeed,inQ4.2012 t

85、he pace of new NPLs slowed(up by just 0.2pps to 23.3%)vs.the first three quarters of the year,during which the rate at which+90 dpd loandelinquencies were increasing was 1.1 pp per quarter.Provisions for NPLs grew by 3.8%on the previous year(182.8 million)but are likely to fall in 2013therebyincreas

86、ing the coverage ratio for NPLs to 49%from 46%a year earlier.The climate of economic and political instabilityprevailing in the country,uncertainty about the successof the recapitalization process of Greek banks and theresulting lack of confidence among domestic andinternational investors caused ban

87、k shares,includingNBGs share,to fall sharply for a fifth consecutive year.The limited rally following the formation of a coalitiongovernment in the middle of 2012 was not sufficient toreverse the overall picture of general decline year onyear.NBGs share price displayed high volatility,peaking at 3.0

88、 on 8 February 2012 and dipping to 0.9on 5 June 2012,while its average annual price was 1.7and its closing price at 31 December 2012 was 1.3.Theannual standard deviation(ASD)of the NBG share pricewas 6.2%compared with 5.4%in 2011.The ASD of theGreek banking sector rose from 4.8%to 6.1%,while thechan

89、ge in the ASD year-on-year of the GI-ATHEX indexwas much smaller(2.5%in 2012,2.4%in 2011).NBGs market capitalization at 31 December 2012 was1.2 billion,while its average market capitalization overthe year was 1.7 billion.NBGs share of the totalmarket capitalization of the Greek banking sectordecreas

90、ed by 43.9%in 2011 to 28.8%in 2012,whileNBGs share of the total capitalization of the Greekstock market stood at 4.2%,compared with 5.8%in 2011.The total trading volume of the NBG share amountedto 2.5 billion,lower than the previous year(4.7billion),equivalent to 19.8%of the annual trading volumeof

91、the domestic capital market and 38.9%of the annualvolume of transactions of the domestic banking sector,against 44.7%in 2011.The stocks liquidity ratio(the ratio of the value of thestocks trading volume to average capitalization)for2012 stood at 149%,far above the corresponding ratio(just 54%)for th

92、e GI-ATHEX.16NBG SHARE17TABLE 1TABLE 1NBG STOCK MARKET DATANBG STOCK MARKET DATA(1)(1)201220122011201020092008Year-end price()1 1.3.31.66.115.410.4Year high()3 3.0.08.117.724.035.9Year low()0 0.9.91.46.06.98.8Mean price for the year()1 1.7.74.49.615.022.8Yearly standard deviation for NBG share price

93、(%)6 6.2.25.43.84.04.4Yearly standard deviation for banking sector(%)6 6.1.14.83.43.43.4Yearly standard deviation for ATHEX(%)2 2.5.52.42.22.12.5NBG market capitalization at year end(billions)1 1.2.21.55.811.06.6NBG-to-ATHEX market capitalization ratio at year end(%)4 4.2.25.810.717.19.6NBG-to-banki

94、ng sector capitalization ratio at year end(%)2 28.88.843.934.935.431.1Annual trading volume(billions)2 2.5.54.711.111.614.9NBG-to-ATHEX trading volume ratio(%)1 19.89.822.631.726.219.2NBG-to-banking sector trading volume ratio(%)3 38.98.944.752.041.438.8Annual liquidity ratio:NBG(%)(2)149.2149.2112.

95、0155.1113.4103.6Annual liquidity ratio:banking sector(%)1 147.747.787.499.696.677.7Annual liquidity ratio:ATHEX(%)5 53.83.846.554.270.462.7Sources:ATHEX,Bloomberg,NBG calculations(1)For ease of comparison,share prices have been adjusted to reflect capital increases of the past 5 years.(2)Ratio of an

96、nual trading volume to average capitalization.18In 2012 no change occurred in NBGs share capital,whichat 31 December 2012,as at 31 December 2011,wasdivided into:a)956,090,482 common shares of a nominalvalue of 5 each,b)25,000,000 redeemable non-votingpreference shares without cumulative dividend rig

97、hts,ofa nominal value of 0.30 each,and c)270,000,000redeemable preference registered shares,under Law.3723/2008,of a nominal value of 5 each.NBGs share capital had a widely dispersed shareholderbase,spread across approximately 220,000 retail andinstitutional shareholders at the end of December 2012.

98、No single shareholder owned more than 3.5%of theshare capital.NBGs shareholder data indicate(DIAGRAM2)that,as at 31 December 2012,23.6%of its share capitalwas owned by international institutional and retailinvestors,compared with 27.4%a year earlier(DIAGRAM3).The percentage shareholding of domestic

99、retailinvestors increased substantially from 44.1%to 49.2%atthe end of 2012,while by contrast the respectivepercentage of domestic institutional investors fell to 2.0%from 2.7%in 2011.The percentage shareholding ofpension funds(supervised or not by the Greek State)remained virtually unchanged for th

100、e year.SHAREHOLDER STRUCTURE191FINANCIAL ENVIRONMENTSECTION20In 2012,global economic activity slowed to an annualrate of 3.2%,from 4.0%in 2011,mainly due to thenegative growth rate in the euro area.Specifically,theeuro area economy contracted by 0.6%in 2012,frompositive growth of 1.4%in the previous

101、 year(DIAGRAM1.1.1),with Spain and Italy joining the rest of theperipheral euro area economies in recession(exceptfor Ireland).The US economic recovery gained traction,expanding by 2.2%in 2012,from 1.8%in 2011,due toresilient domestic demand,a slow but steadyimprovement in the labour market and a st

102、rongerhousing market recovery.The Japanese economy grewby 2.0%from-0.6%in 2011,as a result of thereconstruction activity that followed the disastrousTohoku earthquake and the ensuing nuclear accidentof 2011.Last,the pace of growth decelerated in 2012 to5.1%,from 6.4%in 2011,across the board in emerg

103、ingeconomies.International oil prices declined in 2012,due to theslowdown in the global economy,which impactednegatively the demand for oil,and the weakening ofgeopolitical tensions in the Middle East and NorthAfrica.Specifically,by the end of the year the price ofcrude oil retreated 7%to USD92 per

104、barrel,from USD99per barrel a year earlier.In terms of average price overthe whole year,oil remained virtually unchanged atUSD94 per barrel,from USD95 in 2011.The(averageannual)prices of food and industrial metals declinedby 5.6%and 15.1%,respectively,mainly as a result ofslow global economic growth

105、.In the developedeconomies inflation decelerated in 2012 to 2.0%,from2.7%in 2011,while in the emerging economies it slowedto 5.9%,from 7.2%in 2011.By contrast,in the four keydeveloping economies,core inflation(which excludesthe particularly volatile component of food and energy1.1 FINANCIAL ENVIRONM

106、ENTFINANCIAL ENVIRONMENTSECTION121prices)rose in 2012 to 1.6%,from 1.3%in 2011,thoughremaining at manageable levels,mainly because of thewidening output gap and high unemployment.Most central banks kept their monetary policy extremelyloose in 2012.Specifically,in the US,the Fed expandedits Operation

107、 Twist program by USD267 billion by end-2012 and initiated a third round of quantitative easingtargeting agency mortgage-backed securities at a paceof USD40 billion per month on an open-ended basis aswell as a further expansion by USD45 billion per monthtargeting Treasuries to replace Operation Twis

108、t,byJanuary 2013.Moreover,the Fed linked its interest ratepolicy guidance to quantitative targets for theunemployment rate and inflation,with 6.5%as amaximum threshold for the unemployment rate and 2.5%,for the one year ahead annual inflation rate.The ECBcontinued its liquidity assistance to the eur

109、o area bankingsector through longer-term refinancing operations(“LTROs”)in February,proceeded with a rate cut by 25bps in its main refinancing rate,bringing it to 0.75%(andthe deposit facility rate to zero)in July(DIAGRAM 1.1.2)and,most importantly,announced in September a secondprogram(to replace t

110、he Securities Markets Program“SMP”)of unlimited sovereign bond purchases in thesecondary market(Outright Monetary Transactions/OMT)targeting government bonds with remaining maturity of1-3 years for countries that apply for an EFSF/ESMprogram(European Financial Stability Facility/EuropeanStability Me

111、chanism program).As regards public finances,the deficit-to-GDP ratio inthe US declined to 8.5%in 2012,from 10.0%in 2011,while in the euro area it dropped to 3.7%in 2012,from4.2%in 2011(DIAGRAM 1.1.3),reflecting the intention ofthe relevant authorities on both sides of the Atlantic toadhere to the cu

112、rrent course of fiscal adjustment.Southeast Europe(SEE-5)and TurkeyThe macroeconomic picture in Southeast Europe 5(“SEE-5”,comprising Albania,Bulgaria,FYROM,Romaniaand Serbia)and Turkey was mixed in 2012.In Turkey,growth moderated sharply;however,external imbalances receded and the banking sectorspe

113、rformance strengthened further.The sharp economicslowdown was driven by weakening domestic demand,reflecting mainly tight liquidity conditions,as theauthorities took measures to contain credit activitygrowth to 15%and to limit surging foreign capital inflows,in order to cool the overheating economy

114、and avoidfinancial instability.As a result,real GDP growth easedsharply to 2.2%in 2012 from 8.8%in 2011 and the currentaccount deficit,the“Achilles heel”of the Turkisheconomy,narrowed markedly to the manageable level of6%of GDP in 2012 from 10%of GDP in 2011.Note that theimprovement in the current a

115、ccount in 2012 was22supported by gold(net)exports(1%of GDP),which cannotbe sustained as Turkey is not a producer of gold.Despite this backdrop of weak economic growth and tightliquidity conditions(reducing lending growth to 15.3%in2012 from 31.4%in 2011),the Turkish banking sectormanaged to improve

116、its already strong fundamentals andimpressive performance.Specifically,the return onaverage equity ratio rose to 18.9%in 2012 from 18%in 2011,the ratio of NPLs to total loans remained broadlyunchanged from their 2011 level of 2.8%,and the capitaladequacy ratio improved further to 17.9%in 2012 from16

117、.6%in 2011,well above the statutory threshold of 12%.In the SEE-5,economic activity decelerated and thebanking sector performance deteriorated further;however,external imbalances receded.Subdueddomestic demand and weakening external demand werebehind the poor growth performance.The formerreflected,i

118、nter alia,tight incomes and fiscal policy,lowerforeign capital inflows,and weak credit activity,on theback of limited financing of the primarily foreign-ownedbanking sector by parent banks and tighter bank creditrules.The weak external demand was due to the returnto recession of the regions main tra

119、ding partner theeuro area.As a result,real GDP in the SEE-5 slowed tojust 0.4%in 2012,following a recovery in 2011(up 2.1%),while the adjustment in external imbalances,started in2009 in the wake of the global economic and financialcrisis,continued,with the current account deficit standingat the sust

120、ainable level of 4.6%of GDP.The fundamentals of the SEE-5 banking sector weakenedfurther in 2012,as i)economic activity weakened,ii)creditactivity moderated(up only 3.1%in 2012,against 6.1%in2011)on the back of banks efforts to contain thedeterioration of their asset quality and protect theircapital

121、,and iii)domestic and external financing becamemore expensive.Indeed,the bottom line stood at circa100 million in 2012 compared with 400 million in 2011,the ratio of NPLs to total loans deteriorated further,ranging between 10.5%(FYROM)and 22.8%(Albania)in2012,as against 9.9%(FYROM)and 19%(Serbia)in

122、2011,and the capital adequacy ratio weakened,rangingbetween 14.6%(Romania)and 17.1%(FYROM)in 2012compared with 14.9%(Romania)and 19.1%(Serbia)in 2011.FINANCIAL ENVIRONMENTSECTION1231.2 THE GREEK ECONOMY The Greek economy continued to face severemacroeconomic headwinds in 2012,as high uncertaintyrega

123、rding the evolution of the Greek crisis,a protractedpre-election period and the recessionary impact ofausterity measures underlying the fiscal adjustmentstrategy,eroded for the greater part of the year confidence gains that followed the approval of a newEconomic Support Program for Greece in March 2

124、012,and the successful completion of the ambitioussovereign debt restructuring with private sectorinvolvement(“PSI”)in April.Nevertheless,steadyprogress with regard to the implementation of the fiscaladjustment program and the successful completion albeit after several months of delay of the progres

125、sreport by the troika at the end of 2012 served toimprove the economic climate,which has gained evengreater momentum in the beginning of 2013.Greece underwent its fifth year of recession in 2012,with GDP contracting yet again,by 6.4%.This reflectsthe 9.4%decline in domestic demand.Specifically,consu

126、mer spending declined by 8.2%,while investmentspending posted a significant slowdown(down 19%yearon year).On the other hand,net exports of goods andservices impacted positively on GDP,reflecting mainlythe marked drop in imports(down 13.6%),as exports(atconstant prices)posted a slight decline(down 1.

127、9%).Thecurrent account deficit posted a significant decline(by3.4%in 2012,compared with 9.9%in 2011),due both tothe decline in net exports and the substantialimprovement in the income account with the reductionin interest payments as a result of the more favourablefinancing terms(under the PSI).The

128、strong recessionary pressures led to a furtherdeterioration in the labour market.The unemploymentrate for the year overall stood at 24.2%,while in Q4.2012it reached 26%.Equally worrying was the 8%reductionin employment.However,it should be pointed out thata number of significant changes in the natur

129、e of labourrelations have been introduced,as reflected in labourcontracts post-termination effects of CLAs,greaterflexibility in the level and nature of employment andlabour costs,which have declined substantially tocompetitive levels.Ultimately,it is anticipated that theimprovement in cost competit

130、iveness will translategradually into enhanced productivity and competitivenessof the economy and the creation of new jobs.In addition,the recession led to a further decline inhouse prices,by 13.2%in 2012,while the cumulativedecline in house prices from the historical high of 2008through to Q4.2012 w

131、as 26.1%.The CPI rose by 1.5%,showing a sharper deceleration in the second half ofthe year,while the annual change in the harmonised24index of consumer prices was below the euro arealevel(1%vs.2.5%).The deflationary trends are moreevident in the services sector,and show signs ofstrengthening in earl

132、y 2013,as the annual impact ofenergy prices is likely to be more favourable in 2013,while the inflationary impact of higher taxes(the lastbeing on heating oil)should have waned by the end ofthe current year.In view of the unprecedented cumulative decline ineconomic activity,the recovery effort is pa

133、rticularlydifficult and requires more time,as well as improvedlabour market conditions.Nevertheless,in 2012 Greecemanaged to make significant progress in reversing to a significant extent the highly negative climate,atleast in terms of credibility and the implementation ofcommitments and consolidati

134、ng the progress made infiscal adjustment.This effort was given a decisive boostby the approval of the new Economic Support Programin March 2012,and the successful completion of thepublic debt restructuring(under the PSI)in April 2012.Indeed,the PSI brought about a substantial reductionin public debt

135、,as well as the requirements for debtservicing,due to the substantial reduction in lendingrates(average lending rate less than 3%per year,vs.5%in 2011)and the lengthening of the debt term(from10 to 30 years).This positive trend was also given a boost with thesigning of the agreement,in November 2012

136、,with euroarea partners and the IMF to give Greece additionaldebt relief with a view to counteracting the adverseimpact of a sharper than expected deterioration inmacroeconomic conditions.The new agreement ondebt relief provides for lower interest rates anddeferred interest and longer maturities on

137、officialloans,sufficient financing to cover the greater part of2015,and the implementation of a voluntary debtbuyback from the private sector.Greece carried outsuccessfully the public debt buy-back tender processin December 2012.The deal aims to reduce the Greekdebt-to-GDP ratio from around 175%of G

138、DP in 2013 toapproximately 124%by end-2020,and to below 110%ofGDP in 2022.Greeces partners in the euro area haveundertaken to provide further support so as to achievea sustainable debt dynamic,provided the countrymanages to bring the primary fiscal balance intobalance and move ahead decisively with

139、the remainingstructural reforms.The successful meeting of budget targets,the gradualreturn of deposits,as well as the ongoing structuralreforms have all laid the foundations for stabilization,in the first stage,of the economy,and forge the rightconditions for growth.According to the final budgetdata

140、 for 2012 in the framework of the Excessive DeficitProcedure,which were submitted and approved byFINANCIAL ENVIRONMENTSECTION125Eurostat,the General Government deficit for 2012reached 10%(including a net fiscal burden of 4%of GDPassociated with government support for the bankingsector),while the Gen

141、eral Government debt stood at156.9%,from 170.3%in 2011.In essence,the fiscaladjustment achieved in 2012 exceeded the targets ofthe Program,with the primary budget deficit standingat 1%of GDP(excluding the extraordinary cost of thesupport to the banking sector),vs.the Programs targetof 1.5%of GDP.The

142、 remarkable progress in curbinggovernment spending more than offset the continuedpressure on revenue due to the recession and the slowrate of improvement in tax efficiency.The challenge for 2013 is the gradual stabilization of thereal economy.To do this it is necessary to secureliquidity,and to stre

143、ngthen and develop the productionbase by supporting firms that can present innovativebusiness plans and prospects of success,though theymay be facing problems in the current economicjuncture.Furthermore,it is necessary to foster plansand programs that will contribute to economic activity,so as to re

144、gain the competitive position of our countryas well as the confidence of international markets.Anticipated developments Outlook The successful completion of the 3rd Review in April 2013and the disbursement of the associated funding packagehelp to consolidate the favourable dynamic for the Greekecono

145、my that began at the end of 2012,and is reflected inthe de-escalation of GGB yields,which fell from 34.8%inFebruary 2012 to 11.9%in December of the same year andto less than 10%in the first four months of 2013.Theeconomic climate,as reflected mainly in leading economicindicators,is improving steadil

146、y,while the recovery inconfidence has led to a 10.6 billion increase in the retaildeposit base,up by 6.3%,during the second half of 2012and Q1.2013.Particularly encouraging signs from thetourism industry(forecasts for revenue growth of over 7%year on year),together with faster clearance ofgovernment

147、 arrears to the private sector(over 3.5%of GDPin 2013)and inflows of funding from Structural Funds andthe European Investment Bank should put a significantbrake on the recessionary spiral from Q3.2013 onwards,laying the foundations for a gradual recovery from 2014.However,the recessionary pressure f

148、rom the fiscalmeasures and further reductions in wages,coupled withthe continuing decline in employment,will put furtherpressure on domestic spending.Specifically,GDP is expected to contract by about 4.5%yearon year in 2013,although the quarterly rate of declineshould decelerate gradually in Q3 and

149、Q4.2013,creatingthe conditions for a recovery of GDP in 2014.Fiscalconsolidation is likely to maintain its momentum in 2013,26with the deficit forecast to be below 4%of GDP,based on acredible mix of new spending cuts and relatively realisticrevenue targets backed by effective measures.Furthermore,th

150、e steady progress in structural reformsand a new start to the privatization process can provideadditional impetus to the countrys credibility,reducingrecessionary pressures and gradually alleviating the highsocial cost of the recession.FINANCIAL ENVIRONMENTSECTION1271.3 GREEK BANKING SECTOR In 2012

151、the Greek banking system remained undersevere pressure in all key aspects of its business:capital,liquidity,asset quality and profitability.Sovereign andpolitical uncertainty dominated the sector,liquidityconditions remained challenging through sustainedoutflows and cash burn in the first half of th

152、e year,whileincreased collateralization requirements of assetspledged to the Eurosystem and eventually the temporaryban on the ECBs acceptance of Greek sovereign paperand guarantees affected profitability significantly.In the second half of 2012 conditions improvedmaterially in the aftermath of twin

153、 elections thatrestored political stability and reduced dramatically therisk of a Greek exit,allowing the resumption of officialprogram funding by the ECB,the IMF and euro areamembers.Also,liquidity conditions almost reversedthrough a substantial return of deposits,the significantreduction of haircu

154、ts imposed on collaterals,the lift ofthe ECB ban on the eligibility of Greek debt securitiesand guarantees used for refinancing purposes and theincrease in Greek banks effective collateral poolthrough the receipt of additional EFSF bonds used fortheir recapitalization.In early December 2012,Greek ba

155、nks took the decisionto fully support the debt buy-back program of the GreekState,in which new GGBs acquired during the PSI+were exchanged with EFSF bonds at about 1/3 of theirnominal value.The incentive for Greek banks inforegoing the interest income of the exchangedsecurities as well as in crystal

156、lizing a significant lossat a period of distress was their determination tosupport the targeted public debt reduction.The successof the buy-back has contributed significantly to thesustainability of the public debt in line with theprescriptions of the earlier Eurogroup decisions,andhas led to a gree

157、n light for the release of programfunds in excess of 50 billion.The disbursementincluded funds earmarked for the funding of thecountrys primary deficit,the reduction of arrears andthe recapitalization of the banking system.On the asset quality front,2012 has been the worst yearby far of the crisis w

158、ith economic recession combinedwith sovereign uncertainty and perceived politicalinstability creating an explosive mix that resulted in thecreation of past due loans that exceeded even the mostpessimistic forecasts by a wide margin.In 2012,bankshad to incur provisions exceeding 4.5%of the domesticlo

159、an portfolios in just one year.Extremely high provisionsand higher funding costs led to the reporting ofsubstantial losses for the sector,despite concerted effortsto curb operating expenses.282012 was a decisive year for the structure of the Greekbanking system as long awaited mergers andacquisition

160、s took place in response to the escalatingcrisis and ahead of the pressing need for recapitalization.Following an early 2012 strategic assessment of theGreek banking sector regarding the viability of bankscommissioned by the Bank of Greece,viable and corebanks were distinguished from non-viable ones

161、 with theformer receiving capital support through program funds(EFSF bonds)and the latter opting for recapitalization byprivate shareholders or be subject to a resolutionarrangement.The four core banks received an aggregate27.5 billion in EFSF paper via the Hellenic FinancialStability Fund(“HFSF”)th

162、ereby restoring capital adequacylevels above minimum regulatory levels.The restructuring process has so far resulted in thereform of two State banks and two private banks(ATEBank and Hellenic Post Bank,Probank and FirstBusiness Bank-FBB),the cease of operation of threecooperative banks(Achaiki,Lamia

163、,and Lesvos-Limnoscooperative banks),and the absorption of three foreign-owned banks(Emporiki by Alpha Bank,and Geniki andMillennium by Piraeus Bank).The planned merger ofNBG and Eurobank Ergasias was suspended due to theneed to recapitalize the two banks separately.Unableto secure the minimum 10%pr

164、ivate shareholderparticipation in the recapitalization process,Eurobankwas fully recapitalized by the HFSF.Following thestormy events in the Cypriot banking sector in the springof 2013,the healthy business of the three Cypriot banksoperating in the Greek market(Cyprus Bank,CPB andHellenic Bank)was t

165、ransferred to the Piraeus BankGroup.Moreover,in May 2013,NBG absorbed the healthybusiness of First Business BankFBB.Once the core banks have completed their rights issuesand other capital enhancement initiatives,the Greekbanking sector will be heavily occupied with executingmultiple integration proj

166、ects over a medium-termhorizon that will yield benefits from the realization ofsynergies on the cost,funding and revenue sides forthe new banking groups.With the flexibility provided bythe new larger and more viable banking structures,Greek banks will be in a much better position to playtheir part i

167、n the national effort to put the economy backon the road to growth.FINANCIAL ENVIRONMENT1SECTION292ACTIVITIES OF THE GROUP IN GREECESECTION30As at 31.12.2012,the Groups retail loan book beforeprovisions amounted to 45,455 million,down by 3%year on year,of which 28,981 million concernedactivities in

168、Greece.In 2012,the quality of the retail loan portfoliodeteriorated due to the extremely adverseenvironment in Greece.NBG focused on reschedulingand collecting borrowers debts so as to break the riseof delinquencies,a trend that became morediscernible as liquidity conditions improved andeconomic unc

169、ertainty began to recede in the lastquarter of the year.Mortgage lendingIn 2012 household finances were further stressed bytax increases and contraction of incomes,coupled withvery high increases in unemployment.Activity in thereal estate sector was low,as construction and relatedtransactions slumpe

170、d,while prices fell for the fifthconsecutive year.As a result,mortgage lending posteda decline,in terms of both outstanding housing loansand new loans.The Banks mortgage lending balance fell by 4.6%,to18.9 billion,tracking the general market trend.Thefall in mortgage outstandings was impacted by the

171、particularly low demand for new housing loans and theimplementation of very strict lending criteria.Accordingly,new disbursements totalled just 50million,against 300 million in 2011,and 1,415 millionin 2010.The Banks market share remainedunchanged at 24%,still ahead of its peers.The Banks efforts fo

172、cused on effective managementof the existing portfolio in order to prevent further2.1 RETAIL BANKINGACTIVITIES OF THE GROUP IN GREECE2SECTION31deterioration through the design and implementationof debt rescheduling packages,which for the most partoffer lower instalments adjusted to the borrowersfina

173、ncial status for a pre-agreed period of time.Therescheduling terms ensure normal repayment of theloans,thereby mitigating the risk for the Bank,in viewof the fact that interest rates are kept at satisfactorylevels and the collateral on the loans is enhanced.Large customers are handled by a special t

174、eam at theBank,which formulates the terms of the rescheduledfinancing on a case by case basis,depending on theborrowers financial status.The Bank also enhanced its loan restructuring andrescheduling packages for unemployed customers,offering particularly favourable terms in the first yearsof the res

175、cheduled loan term.In addition,actingproactively,it developed rescheduling packages forborrowers whose debts are only slightly in arrears,thereby seeking to reduce future problems.With thesemeasures the Bank has covered the entire range of itscustomers,who have suffered a severe loss of income,with

176、the launch and introduction of flexible tailor-madepackages.Based on the experience gained during the recentyears of crisis and the new economic situation,theBank optimized its customer evaluation systems,withthe introduction of stricter credit score criteria andratings.The target for the year ahead

177、 is to continue improvingthe offering of loan rescheduling packages,adjustedto market conditions,the aim being to maximizerevenue and contain the increase in delinquencies.Accordingly,the Bank will be prepared to addresseffectively any legislative changes that may occur inthe near future regarding r

178、escheduling of borrowersdues.Consumer lending The Banks coordinated efforts to support distressedcustomers continued in 2012.These efforts areparticularly significant in view of the stabilization of theeconomy and,thereafter,recovery in activity.Specifically,the Bank:?continued to offer debt resched

179、uling packages inorder to establish realistic repayment schedules;?enhanced measures to support unemployedborrowers by offering new consumer credit debtrestructuring and rescheduling solutions,with aninitial 2-year period during which just a part of themonthly instalment is paid;32?offered all the a

180、forementioned packages with theoption to register a prenotation on real estate.In thiscase,a much lower interest rate and the maximumrepayment term are offered,the combination of whichleads to a reduction of the instalment to a very lowlevel,as well as the total cost of the credit,while atthe same t

181、ime it enhances customers likelihood ofmeeting their loan repayment obligations.At an everincreasing rate,which now exceeds 32%,the Bankscustomers are electing to offer a prenotation on realestate as collateral in order to improve the financialterms of their debt rescheduling;?resolved customer case

182、s that are not provided forunder the conventional debt rescheduling frameworkthrough its Retail Banking Debt ReschedulingCommittee,which has wide discretion in respect ofloan restructuring matters;?made serious efforts to deal with customer cases thatresorted to the provisions of Law 3869/10 on over

183、-indebted households.The aim of these efforts is tofind a mutually acceptable solution on an extrajudicialbasis,so as to contain the mounting number ofdebtors filing requests for judicial settlement of debts.At the same time,NBG,besides the environmental policyit implements,encourages its customers

184、involved inenvironmental actions to play an active role in theprotection of the environment by choosing environment-friendly energy forms and technology,offering them a fullrange of products aimed at financing green actions.Inthis context,the Bank holds 1st place as regards thenumber of applications

185、 and volume of disbursements inthe“Energy-Saving at Home”program,designed toencourage green upgrade of residences,with animmediate benefit for households due to the reduction inthe annual cooling and heating expenditure.Four banksparticipate in the program,while NBG has secured viaopen public tender

186、 40%of the total funding for itscustomers.Credit cardsIn 2012,the Bank focused on improving liquidity byencouraging customers to use debit cards in their dailytransactions and by cleaning up its credit card portfolioand offering restructuring packages to customerspresenting a high likelihood of defa

187、ult.More specifically,in 2012,the Bank launched“Your smallchange turns to gains”,a transaction reward program viaits ETHNOCASH debit card,aiming to encouragecustomers to use their cards for purchases,by debitingdirectly the deposit account,instead of withdrawing cashfrom ATMs.In addition,the Bank ex

188、panded the use ofACTIVITIES OF THE GROUP IN GREECE2SECTION33ETHNOCASH to online purchases using a personalsecurity code.By taking these initiatives the Bank has laid thefoundations for establishing its debit card as a state-of-the-art payment instrument in daily transactionsconvenient for both consu

189、mers and retailerswhich willhelp stimulate the market and enhance retailers effortsto get back to business growth.With regard to its credit card portfolio,the Bank steppedup its efforts to assist its customers by providing debtrescheduling products under privileged terms,as well asother measures to

190、avert the likelihood of future default.In addition,NBG focused on qualitative expansion of itscredit card portfolio by supporting reward and cash-backprograms,placing particular emphasis on its“go”cardsand“go National”customer loyalty program that enablecardholders to enjoy cash bonuses and special

191、offers viapartner retailers.For instance,throughout the year the Bank offered itsspecial“go National”discount programs that enablecustomers to enjoy instant gains on the purchase priceof a wide range of goods and services(clothes,shoes,household equipment,gifts,electrical appliances,food,fuel,recrea

192、tion,medical services)from popular storesand franchises.Furthermore,as part of its social responsibility actions,the Bank launched its“go for Kids”program from01.12.2012 to 15.01.2013,by which the Bank gives a partof its card turnover to support non-profit organizationssuch as The Smile of the Child

193、,MDA Hellas,ELEPAP,theHatzikyriakeio Childcare Institution,the HatzikonstaFoundation,SOS Childrens Villages,the TheotokosFoundation,Margarita and Pisti,which supportchildren and young people in vulnerable social groups.In 2013,the Bank aims to launch tailor-made productsand services for consumers,fu

194、rther develop its loyaltyprograms,and consolidate the use of its debit cards as apayment instrument for shopping.Lending to small businessesNBG offered liquidity to small and medium businesses(SMEs)through the following co-funded programs,whichgrant credit to SMEs at low rates of interest:?The JEREM

195、IE initiative,which seeks to cover theneeds of SMEs for working capital and the acquisitionof fixed assets.These loans are funded jointly,50%bythe European Investment Fund via the NSRF 2007-2013,and 50%by means of NBG funds.?The ETEAN SA Programs,and specifically:?Action C:“Youth Entrepreneurship”,s

196、et up for thefinancing of investment plans under Investment Law3908/2011.?Action:“Thematic Tourism,Desalination,WasteManagement,Green Infrastructures,GreenApplications,RES”,for financing investment plans thatare included in EPAN II programs or other businessprograms,or which are not included in any

197、state aidprogram,whose purpose is primarily to financeRenewable Energy Sources(RES).The results so farhave been good.The Bank also continued to grant liquidity to businessesand thereby support their activities,arranging forrescheduling of debts that are in an early stage of default,while continuing

198、to help customers repay theirobligations by means of various rescheduling andrestructuring programs.In addition,the Bank offers financing to individuals andlegal entities who wish to invest in RES and,specifically,in power generation through photovoltaic systems.In the area of procedures and compute

199、r systems:?The system for the“Management of SME LoanRequests”has been deployed,for electronicallyforwarding and approving credit loan requests,and?At the beginning of 2012,the“CRM CustomerManagement”system was launched,for customerdebt rescheduling and restructuring,with thetransmission of reporting

200、,monitoring and evaluationof operations,both on an aggregate basis and percustomer,for the entire retail segment.2.2 BUSINESS BANKINGThe business loan portfolio in Greece presenteddeleveraging(-18.4%)year on year,while the Bankstotal loans outstanding to businesses with turnoverover 2.5 million stoo

201、d at 15.4 billion(DIAGRAM 2.2.1).Corporate lendingThe recession in 2012 took a heavy toll on the Bankscorporate loan book.The Bank sought to assist businesses in their efforts to34ACTIVITIES OF THE GROUP IN GREECE2SECTION35meet their obligations in the face of the ongoing crisisand accordingly imple

202、mented a policy for reschedulingthe loan repayments of businesses experiencingliquidity problems,under terms adjusted to the needsof each corporation.In light of the increased need for restructuring of alarge number of corporate loans,the Bank wasparticularly active in coordinating and organizingsyn

203、dicated solutions,by means of a special purposeteam.More specifically,it launched 62 new syndicatedloans,while it amended the terms of several existingsyndicated financing arrangements.NBG continued to channel support to specific sectorsof the economy,such as RES.In 2012,NBG approvedfinancing of pro

204、jects of a total of circa 48MW powercapacity.Total lending to corporations amounted to 6 billion,unchanged from the previous year.Financing to NBGGroup subsidiaries headquartered in Greece alsoremained unchanged from 2011,at 1.1 billion.Financing to the wider public sector declined by 54.6%to 1.6 bi

205、llion,due to the impact of the PSI+,whilefinancing to corporations overseas declined by 21%.Last,financing to the Groups subsidiaries head-quartered abroad was further reduced in line withefforts to enable them to meet their own funding needson an independent basis.Project financeIn 2012 the project

206、 finance portfolio posted a marginaldecline,mainly due to the upfront payment of financingfor a project abroad.On the other hand,the projectfinance portfolio in Greece grew by 13%,mainlyreflecting the Banks participation in the financing of acutting-edge project(and the largest of recent years)in th

207、e real estate sector in Greece(construction of abioclimatic building housing COSMOTEs head office).This year negotiations between the Hellenic Republic,concessionaires and lending banks should bear fruit,thus enabling construction of four motorways tocontinue,while boosting the domestic project fina

208、nceportfolio over the next two to three years.In addition,itis expected that Public-Private Partnership(PPP)projects should gain momentum in the year ahead(particularly in the area of waste management)withconcomitant need for related funding arrangements.Developments in the lending portfolio are set

209、 out in theTABLE 2.2.1.36Consulting services to the Greek government and privatebodies in the sphere of concession projects and PPPsexperienced stagnation in 2012,as a result of the adverseeconomic climate.As of December 2011,the Bank,in its capacity of“UrbanDevelopment Fund(UDF)”,undertook the mana

210、gementof funds of the European Structural Funds as part of theJESSICA project(Joint European Support for SustainableInvestment in City Areas Initiative)totalling 83.3 million,targeting the regions of Attica,the Ionian Islands andWestern Greece,and the Environment and SustainableDevelopment Plan.Duri

211、ng the period 2012-2015,thesefunds,along with the funds from the Bank and otherprivate sources,will be used to finance eligible urbandevelopment projects.This activity should generatesubstantial revenue for the Bank in the form ofmanagement fees.In 2012,15 investment proposals were submitted forincl

212、usion in UDF financing,with a total budget of 244.6million and funding requested from the UDF amountingto 101.6 million.Lending to medium-sized businessesWithin the severe economic conditions prevailing inGreece in 2012,our strategic focus with regard tomedium-sized businesses was to provide support

213、 fortheir business plans in the face of the ongoing crisis.To this end,credit frameworks have been arranged forthe purpose of providing the liquidity needed to sustainthe operations of business customers,following acareful analysis of all the key parameters suggestingthat the firms in question prese

214、nt positive prospectsthat a minimum level of activity and performance canACTIVITIES OF THE GROUP IN GREECE2SECTIONTABLE 2.2.1TABLE 2.2.1PROJECT FINANCEPROJECT FINANCEmillion31.12.201131.12.2012Change2012/2011million31.12.201131.12.2012Change2012/2011NumberOutstandingNumberOutstandingof projectsloans

215、of projectsloans(million)(million)Loans to domestic projects789.39101.0+13.1%Loans to projects abroad13364.712329.0-9.8%20454.021430.0-5.3%20454.021430.0-5.3%37be maintained,this being a precondition for theirmedium-to-long-term solvency.NBG continued to provide financing for businessactivity,focusi

216、ng primarily on financing for firms thathave already opened up to markets outside Greece andwhere they now conduct almost all their sales,undergood transactional terms,as well as for firms active inthe trading and processing of agricultural produce forexport.In addition,it continuedon a rationalized

217、basisto provide financing for business plans thatinvolve investments in photovoltaic energy generation.The Bank was also particularly active in arranging loanrestructuring for customers facing liquidity problemsbut who are able to demonstrate their long-termviability.To do this,it implemented busine

218、ssrestructuring plans which are designed jointly with thebusinesses in question.The restructuring was carriedout with a view to improving the ratio of risks tocollateral and rationalizing the pricing of the loans.Deleveraging in the relevant loan portfolio in 2012 wasdue,on the one hand,to the reduc

219、tion in businesslending needs within an environment of falling demand,contracting activity and company policies designed toreduce operating costs,and on the other,to the effortsof sound businesses to stabilize or reduce theirexternal borrowing.While many sectors have been severely afflicted by thecu

220、rrent crisis,the Banks policy choices in thedevelopment of its credit relationships as well itssupport for healthy businessesbacked by the Groupscutting-edge banking culturehave proved to be ofsound quality.LeasingThe slowdown in economic activity and the negative ratesof credit expansion had a sign

221、ificant negative impact onthe leasing sector,due to customers declining liquidity,reluctance to develop investment plans,and increaseddelinquencies.Against this backdrop,Ethniki Leasing continued theportfolio deleveraging process,its leases outstandingfalling by around 9.5%(621 million in 2012,compa

222、redwith 686 million in 2011).Nevertheless,new financingremained at almost the same level as in the previousyear,reflecting our efforts to generate new investmentsand support viable customers.In light of the general adverse circumstances,EthnikiLeasing enhanced its capital position by increasing itss

223、hare capital by 45.8 million,with the process reaching38completion on 31.12.2012.As a result,both its total equity(81.5 million in 2012,against 24.8 million in 2011)andcapital adequacy ratio(at circa 16%)increasedsignificantly.Despite the ongoing deterioration in the economicclimate,the companys mai

224、n priority was to sustain itscore income and step up efforts to control operatingcosts.The companys core earnings before provisions,depreciation and tax were positively affected by theincrease in net interest income as a result of re-pricingof existing agreements.However,core income wasnegatively im

225、pacted by increased handling costs ofcustomers in litigation(increased taxes,maintenanceexpenses,insurance premiums etc,for real estate anddismantling,transport,storage costs for equipment).At the same time,substantial cost containment effortswere made,following reductions in 2011.Accordingly,payrol

226、l costs were reduced significantly,with a 10%reduction,applied as of April 2012,in the gross salary ofstaff on dependent-labour contracts.In addition,certainoperating expenses were reduced(including softwaremaintenance and expenses for consumables andstationery).This reduction was offset by impairme

227、nts inthe value of investment property and equipment.ShippingIn 2012,as the financial environment deteriorated andshipping activity contracted for the third consecutive year,the Bank continued its long tradition of supporting Greek-flagged shipping,offering new financingarrangementson a selective ba

228、sisto existingcustomers,with a reduced financing percentage andincreased pricing.At the same time,efforts were madeto enhance collateral and the normal servicing of theshipping loan portfolio.Likewise,when needed,itarranged rescheduling of loan instalments.Against this backdrop,the quality of the lo

229、an portfolioremained satisfactory with the coverage ratio(loans-to-collateral)standing at 115%.48%of the shipping portfoliocorresponds to loans for vessels under 5 years old,whilethe average age of the mortgaged fleet is 12 years.As at 31.12.2012,shipping financing amounted to USD2.3billion vs.USD2.

230、4 billion a year earlier.The greater partof the loan book concerns dry cargo vessels(42%)andtankers(33%).At the same time,the Bank managed to sustain thedeposit base of its shipping customers,and continued toimprove the factors shaping net interest income in itsloan book.ACTIVITIES OF THE GROUP IN G

231、REECE2SECTION39Global transaction servicesThe recession and concerns about continued Greekmembership of the euro area in 2012 took a heavy tollon the flow of Greeces cross-border commercialactivity.Because trading partners are reluctant toaccept Greek country risk,transactions are carried outunder a

232、dverse payment terms and at higher cost.By leveraging the extensive network of its correspondentbanks abroad,its strong relationships with keyinternational financial organizations and its presence inSE Europe,NBG has managed to ensure the maximumpossible smooth servicing of its customer transactions

233、.In addition,the Banks active participation in negotiationsbetween the parties,coupled with a wide range of flexiblesolutions for financing trade and receivables,served togenerate successful results.NBGs distinction as“Greece Best Trade Finance Bank2013”awarded by Global Finance magazine reflects th

234、eemphasis placed by NBG on this area,and in particularexport business,which comprises a key pillar for Greekeconomic recovery.While the economic backdrop was extremely severe,NBG nevertheless stood by its institutional role andcontinued to lend support to outward-looking Greekbusinesses,helping them

235、 to gain a firmer foothold inoverseas markets and enabling them to keep theirsupply and financial chain flowing smoothly.With regard to liquidity,the Bank,through its businessliquidity management services,offers to its corporatecustomers state-of-the-art solutions with detailedanalysis of their acco

236、unt activity and the payment flowsrequired,thereby enabling them to optimize theiravailable resources and access funds.These servicesare of vital importance at these difficult times for creditaccess and help to reinforce long-term workingrelationships between the Bank and its customers.Managing loan

237、s in arrearsIn 2012,NBG stepped up its efforts to achieve the bestpossible yields for the liquidation and settlement of itsportfolio of business NPLs.Accordingly,the Bank:?focused on developing an effective strategy for theliquidation of receivables in order to deal with new,increasingly complex cas

238、es,which usually need tobe addressed on a case by case basis;?endeavoured to achieve out-of-court settlements/workouts;?continued to improve operational structures by con-centrating and reallocating resources,controllingcosts,and forging economies of scale.These actions were taken within a deteriora

239、tingeconomic climate,the impact of which has been severefor those debtors already in default while alsogenerating new weaknesses and loan repaymentproblems,consequently leading to a rapid rise in thenumber of loan delinquencies.In addition,theconstantly changing legal and regulatory frameworkrestric

240、ted the Banks ability to move ahead withliquidation of claims through the courts.2.3 ASSET MANAGEMENTDeposits Investment productsAs at 31.12.2012,NBGs deposits outstanding declined 8%to 38.7 billion,in line with the general market trend.Despite this development,however,NBGs market shareposted margin

241、al growth,both in respect of total deposits(+0.02%,from 22.36%to 22.38%),as well as in the variousindividual categories:+0.87 in first demand deposits(sight and current deposits+2.29 and savings deposits+0.79)and time deposits+0.01.With regard to its deposit mix,NBG managed tomaintain its comparativ

242、e edge vs.its peers in terms ofcost(ratio of time to savings deposits:1.12 to 1,vs.2.76to 1 at the other banks).Regarding the products,the Bank continued to marketthe following:?“NBG Sight Account”,launched for SMEs and self-employed individuals,offering special privileges andfree transactions.?“Sal

243、ary Plus”,“Business Plus”,“Farmers Plus”,“Stu-dent Life”and“Family Fast”deposit accounts,aimedat specific customer profiles.?“Monthly”6-month and 12-month time deposits,“Cap-ital Plus”guaranteed initial capital investment prod-ucts,enhanced with the following new guaranteedinitial capital products:“

244、Capital Plus 5Y Zero Coupon Callable”,“Capital Plus NBG 32”,“Capital Plus NBG42”,“Capital Plus Up EUR/USD”and“Capital PlusDown EUR/USD”.Notably,the Bank stepped up its efforts to attract salariedemployees of the public sector and public entities(especially municipalities),as well as private sectorem

245、ployees.It also continued to service farmingsubsidies,by crediting accounts of beneficiaries,and to40ACTIVITIES OF THE GROUP IN GREECE2SECTION41further penetrate the said customer category by forgingsuccessful collaboration with farmers cooperatives.As part of its ongoing efforts to enhance its serv

246、ices,theBank created a new single application and agreementform for opening a savings,current or sight account,obtaining EthnoCash Plus or EthnoCash Plus Businesscards,and for signing up for its alternative deliverychannels.Likewise,the time required for handling therelevant procedures was reduced s

247、ignificantly byexpanding the use of the new CRM system.In 2012,the Personal Banking customer basewhichincludes customers with balances over 60,000wasexpanded.Personal Banking posted a particularlystrong performance,in line with the Banks strategy:?425 accredited Personal Banking officers handledfund

248、s worth 13 billion,thereby playing a decisiverole in sustaining the Banks liquidity and enhanc-ing its capital adequacy.?29 new branches were added to the PersonalBanking network in 2012 so that a total of 117,000customers at 354 branches enjoy this privilegedservice.?The Personal Banking officers m

249、anaged approxi-mately 46%of total funds under management atNBG branches and over 80%of time deposits heldby retail customers.?The sale of products at special privileged priceshas been promoted.?A survey analyzing special characteristics of cus-tomers was carried out and the specifications for spe-ci

250、ally designed products that will adopt the brandname of this business area were established.Mutual fundsIn 2012,total Mutual Fund(MF)assets in the domesticmarket increased by 719 million(+13.7%)to 5.95billion(DIAGRAM 2.3.1),despite the economicuncertainty and the ongoing recession,while totaloutflow

251、s contracted by 76%compared with 2011.NBG Asset Management Mutual Funds SA manages 21DELOS Mutual Funds and 3 SICAV funds of NBGInternational,which is registered in Luxembourg.Theclientele consists of over 50,000 shareholders,60 ofwhom are institutional investorspension funds andorganizations.It off

252、ers a wide range of UCITs andgeographical zones,thereby covering a large part ofits clienteles investment activities.Total assets at NBG Asset Management deriving frommutual funds and portfolio management amounted to1.27 billion,up 15.8%at the end of the year.The assetsof the order books of retail a

253、nd institutional investorsincreased by 30%,while funds under management atthe end of the year amounted to 246 million.Themarket share of MFs stood at 17.2%,unchanged on theprevious year.(DIAGRAM 2.3.2).According to data of the Hellenic Funds&AssetManagement Association,in 2012 the mutual fundsmanage

254、d by the NBG Group gained distinguishedplaces in the Greek market.Its European AllStars BMF product gained first place in the Developed MarketsEquity Funds.Its DELOS Eurobond product also gainedfirst place in International Bond Funds.Likewise,thenegotiable NBGAM ETF Greece&Turkey 30 andNBGAM ETF ATH

255、EX General Index gained the first twoplaces in the Equity MF Index.Note that 83%of MFs and 78%of retail and institutionalorder books outperformed their benchmarks(TABLE2.3.1),vs.38%and 65%,respectively,in 2011.Private BankingIn 2012,within an extremely harsh environment,international money markets w

256、ere troubled by instabilityin the euro area and fiscal problems in the US,whilemoney markets in emerging economies managed tosustain,to some degree,their growth rates.Against this backdrop,NBG Private Banking managedto retain the confidence of customers,providinginformation on economic developments

257、and offeringthe most beneficial investment options.Capitaloutflows continued in 2012,as customers,confrontedby a climate of uncertainty and instability,preferred tomove their funds abroad.Likewise,they continued toavoid undertaking investment risks.Capital outflows peaked in May-June 2012,whilefollo

258、wing the formation of a coalition government thetrend declined and some deposits were repatriated.Against this difficult backdrop,funds undermanagement posted a further decline of 5%year onyear,to 1,800 million.The trend of capital repatriation,which is still continuing,albeit slowly,reflects thestr

259、ong position of NBGs Private Banking arm inGreece,being the first choice of Greek investors.The overview of NBGs performance in 2012 confirmsthat the foundations of its Private Banking businessare strong and reliable.Its business model gives it theflexibility to respond effectively to the particular

260、lydifficult conditions prevailing in the country,while42ACTIVITIES OF THE GROUP IN GREECE2SECTION43meeting the needs and profile of each and everycustomer.2.4 INVESTMENT BANKINGNBG provides a wide range of investment services inthe fields of consulting services,capital markets anddebt issuance.In 20

261、12,the Bank was involved in the field of consultingservices,acting as Advisor to:?the Hellenic Republic Assets Development Fund(HRADF),in carrying out the tender process for theacquisition of the right of exclusive use,manage-ment and exploitation of the block of buildings ofthe former International

262、 Broadcasting Center(IBC);ATEBank,for the sale of its shareholding inDODONI SA;?the Board of Rilken SA vis-a-vis the MandatoryOffer of Henkel Hellas;and?the Public Power Corporation with regard to itspurchase option right on DEPA.In addition,NBG continued to act as Advisor to HRADF,in the context of

263、 the privatization program(AthensInternational Airport,OPAP,government propertydevelopment,the Public Power Corp),and to non-listed and ATHEX-listed companies,includingconsulting services on company restructurings.TheBanks activities in other sectors were limited,as theongoing financial crisis has l

264、ed to a significant declinein demand for services in the areas of capital marketsand debt issuance.TreasuryFor yet another year,Greece and the Greek bankingsystem had to deal with a great many challenges amidglobal economic turbulence.In March 2012,NBGparticipated in the PSI+as developed by the Hell

265、enicRepublic and its euro area partners.Despite theimplementation of the program,markets continued toperceive instability,particularly in the politicalenvironment(elections AprilJune 2012),and as aresult the basket of 20 new bonds which derived fromthe PSI ended up trading at 13%of its nominal value

266、(May 2012).In the meantime,the rate of depositwithdrawals from banks accelerated causing depositbalances to hit a record low in mid June 2012.Despite the turbulence,NBG managed to maintain itsleading role,both in the bond market and the liquidityproducts market(savings,sight,time deposits,CapitalPlu

267、s).Specifically,its market share remainedunchanged year on year,while it succeeded in keepingthe cost of deposit products low petition.Thesuccessful design of the Capital Plus range of productsin terms of structure and pricing led to a 140%increaseyear on year in the respective balances,with asimult

268、aneous reduction in weighted cost and increasein average duration.During the second half of the year,there was animprovement in sentiment for the first time since 2009,as the prices of new GGBs moved up from the very lowlevels of June and certain fundsmainly in the formof time depositsstarted to rev

269、ive.Expectations surrounding the sovereign debtrepurchase program led to a further improvement ineconomic conditions.The Hellenic Republic bondbuyback program took place in December 2012.NBGparticipated with its entire portfolio,thereby playing akey role in the successful outcome of the program.In a

270、ddition,the Bank consolidated its role as a PrimaryDealer of bonds issued under the euro area SupportMechanisms(EFSF and ESM),actively participating inall the syndicated issuances and auctions of bonds andT-bill of the said organizations.Lastly,NBG sustained its participation in the issuance ofGreek

271、 T-bills,thereby contributing to the uninterruptedfunding of the countrys short-term needs.BrokerageThe severity of the economic crisis took a heavy toll onthe Greek stock market in 2012,as both average dailytrading volumes and the ATHEX general index(ATHEX-GI)tumbled,particularly during the first e

272、ight monthsof the year.The average daily trading volume for 2012was 51.9 million,down by 37.0%year on year.In theperiod January to August 2012 the average dailytrading volume was 45.0 million,while during the lastfour months of the year it rose to 65.7 million.At theend of 2012,the ATHEX-GI stood at

273、 907.9 units,up by33.4%year on year.However,during the course of theyear the ATHEX-GI moved at very low levels.Forexample,at 6 June 2012 the index slumped to 476.4points.The activity of foreign institutional investors wassignificantly lower,at 29.0%of the ATHEX comparedwith 42.4%a year earlier.The a

274、ctivity of remotemembers was also significantly lower at 14.1%compared with 19.2%the previous year.These developments had a general negative impact onthe turnover of brokerage business.Nevertheless,the44ACTIVITIES OF THE GROUP IN GREECE2SECTION45Groups brokerage arm,National Securities SA,ranked sec

275、ond(vs.third in 2011)with total trading of3.2 billion and a 12.3%market share.In view of the close correlation of the companysrevenue with the prices of shares listed on the ATHEX,as well as the likelihood that the economic crisis willpersist,the company continued the program initiatedin 2010 to str

276、eamline its operating costs.The company continued to act as a market maker in alllisted derivative products and all key stocks traded onthe ATHEX,having gained substantial shares andquality ratings,providing uninterrupted liquidity andserving the wider market.There was a sharp contraction of investm

277、ent interestin the derivatives market in the first half of 2012,though towards the end of the year it picked up slightly.Dealings in futures contracts tended to monopolizeinvestor interest to the detriment of the large capsindex.Despite the adverse circumstances,in 2012National Securities SA ranked

278、second in respect oftotal market share of the FTSE20 index,at 23.1%.Furthermore,it ranked second in most futurescontracts on stocks.In 2012,the analysis department further enhanced thequality and range of its products.Currently,strategicanalysis is offered on the market,while more detailedinformatio

279、n as well as secondary analysis oninternational markets are provided on a daily basis.Communication with foreign institutional investors wasenhanced further,as part of the Banks efforts toeffectively promote NBG products to this category ofcustomers.Our main goals in 2013 are to improve our marketsh

280、are,strengthen economic performance andprofitability,enhance our presence on the internationallevel by launching a branch in Bucharest,and toimprove the services provided by investing in theupgrading of our systems and offering new investmenttools.Private equityIn 2012,NBGI Private Equity(NBGI)focus

281、ed on thedevelopment of its investment portfolio,while it isexpected the main volume of liquidations will beeffected within the period 2014-2016.The Groups philosophy is that successful strategy inthe area of private equity requires more than smartinvestments and timely liquidations:it is moreimport

282、ant to generate than to anticipate returns,46working closely with the managements of firms andimplementing strategies designed to create value andthereby increase returns and liquidity.Accordingly,most of NBGIs investment funds,and the respectiveinvestment teams,developed further the strategies ofth

283、e firms making up the companys portfolio.In 2012,the company expanded its range of activities inrespect of its investment teams and invested funds.Thekey initiatives concerned:a)provision to businesses ofknow-how related to their sectors,and b)the forging ofclose working relations with key firms in

284、the food,healthand business services industries,which togetherrepresent the bulk of invested funds.These initiatives hada significant impact on the way the investment portfoliodeveloped during the year,and are expected to boost thevalue of the corporate portfolio.Despite the current stressed economi

285、c environment,new opportunities for liquidation have started toemerge in the medical equipment portfolio,which isless affected by the macroeconomic environment,while the real estate portfolio is shifting its strategicfocus to cargo and goods storage,strengthening itsposition in warehouses and busine

286、ss parks.Investment activities in recent years have covered awide geographical area extending from the UK andFrance,to Poland,SE Europe and Turkey,in line withNBGIs strategy that focuses on low to mid-capinvestment capital throughout Europe,in various keysectors.It is our firm belief that the low to

287、 mid-capsector on which we focus offers the prospect of thebest returns,while cooperation with the managementof companies in which NBG invests can make a crucialdifference,being decisive for the creation of returnsthat have more to do with the creation of thecompanys value than with its financial pl

288、anning perse.To this end,emphasis is placed on specializedknow-how related to each sector in question,whetheracquired internally or in cooperation with third parties.However,the markets where the company is active arestill stressed and in certain respectssuch asuncertainty caused by the impact of de

289、leveraging byvarious European economieseven harshercompared with 2011.Nevertheless,its portfolio isstructured in such a way that the company can rise tothe challenge and will continue to implement the valuecreation strategies outlined above.NBGI manages 11 funds(some of which aretransferable funds)t

290、hrough teams of experts onacquisitions in the regions of Western Europe,theemerging European markets,real estate,energy andmedical equipment.For the next two to three years,ACTIVITIES OF THE GROUP IN GREECE2SECTION47the NBG Group is planning a review of its investmentactivities,as the current portfo

291、lios reach maturity andare cashed in.Custodian servicesWith its long-standing and dynamic presence,NBGplays a leading role in the constantly evolving,complexand specialized post-trading environment,participating in related international and domesticbodies such as the Hellenic Bank Association,Hellen

292、icExchanges SA,ECB/T2S,the COGESI Group andCCBM2,and the EBF/Post Trading Working Group.The persistent low level of activity in every kind ofinvestment service,as a result of the crisis in Greece,has had a direct impact on custodian activities whilealso depriving local custodian service providers of

293、significant competitive advantages because of theirlow credit ratings.Despite the extremely adverseenvironment NBG managed to mitigate the impact ofthe crisis by maintaining excellent businessrelationships with its clientele and providing top-classtailor-made services.NBGs record of success over the

294、 past years and high-quality services have once again been recognised byits Greek and international institutional customers,who awarded NBGs custodian services the title“TopRated”in the annual survey conducted by industryjournal Global Custodian,gaining top marks forservices provided to institutiona

295、l clientele at thedomestic and international level.2.5 STRATEGY FOR OPERATIONS UPGRADEBranch networkThe difficult economic climate that prevailed in 2012affected banking operations overall and led to a shift instrategic focus so as to adapt to current developmentsswiftly and effectively.Accordingly,

296、NBG decided torationalize the branch network in order to reduceoperating expenses,though without compromising thequality and security of the services provided to itscustomers.In 2012:?28 branches were merged,2 of which were convertedinto transaction offices,1 into a branch annex and 1into an i-bank

297、unit?6 transaction offices and 1 branch annex closed48?1 transaction office(at Evangelismos Hospital)waslaunched and?4 branches were relocated.As a result,at 31.12.2012,NBGs domestic networktotalled 511 branches,280 of which were full bankingunits and 231 retail banking units,39 transaction officesa

298、nd 7 branch annexes.During the mergers,NBG placedemphasis on customer service,through off-site ATMsand other alternative networks(including internetbanking,phone banking,POS),while also promotingautomatic payment systems(SEPY and SPHK).Despite the significant restructuring,NBGs networkcontinues to b

299、e one of the largest in Greece,with amarket share of 14%at 31.12.2012.The structure of thenetwork during the period 2008-2012 is set out inDIAGRAM 2.5.1.In 2012,the networks strategic priorities focused on thefollowing key objectives:?To sustain liquidity and deposits.Despite the declinein deposits

300、in absolute terms,the Banks marketshare of deposits overall was defended and it suc-ceeded in maintaining an effective mix of savings andtime deposits compared to the competition;?To actively manage non-performing portfolios,bymeans of collection of dues or rescheduling of retailloans;?To continue f

301、inancing sound businesses and individ-uals,through the promotion of existing funding pro-grams(including programs backed by Greek Stateguarantees or Community funding projects);?To cut back operating expenses,through coordinatedactions that aimed at rationalization of the network,upgrading of inform

302、ation systems,monitoring andtarget setting procedures,renegotiating of contractswith third parties,etc;?To further improve the quality of customer service,byfurther expanding Personal Banking,boosting tellerproductivity,promoting e-transactions via s andAPS(Automatic Payment Systems),whose use hasin

303、creased,and redesigning customer services pro-vided to business clientele and SMEs.At 31.12.2012,the networks staff totalled 6,820employees,vs.7,117 employees a year earlier,i.e.downby 4%.Efforts to reduce congestion in the back-officewere continued by means of various improvements,changes or automa

304、tion(e.g.,improvements in thecustomer-focused CRM system,system for electronicACTIVITIES OF THE GROUP IN GREECE2SECTION49submission of corporate financing requests WCC,safedeposit box/vault management application SAMS,stock market“Data Feed”application,Retail BankingApplication System(RBAS),payroll

305、credits,branchaccounting search facility,management of user access atBank units,system for ordering office supplies,and SAP-HR system for overtime management at branches).Moreover,additional measures were adopted for thesafety and protection of customers,the staff and theBanks assets.Alternative net

306、worksThe development of alternative channels that provideaccess to the Banks services is of great strategicimportance for NBG.Accordingly,in 2009,NBGadopted the new i-bank trademark for alternativenetworks.i-bank reflects the change in the Bankscustomer service approach(customer-focused),through adv

307、anced 24/7 alternative networks,viaInternet or Phone Banking(PB),s and AutomaticPayment Systems(APS).In 2012,the Contact Centre further developed andexpanded its activities.More than 3.5 million customercalls were answered and over 40%of the Groups stockmarket transactions handled.There were over 1m

308、illion visitors to the two new state-of-the-art i-bankstores and two i-bank corners(two of each in Athensand two in Thessaloniki).The role of the Processes and Applications Help Deskwas enhanced and it continued to provide support tothe Banks branch network and central services withregard to all new

309、 tasks,increasing the volume of workhandled by 40%year on year.Services provided to Ethniki Insurance were developedfurther,as they now extend to all the various segmentsand services of the company,posting 15%growth inbusiness volume,and supporting the key project of thenew ETHNIKI Direct sales plat

310、form.The Banks web portal,www.nbg.gr,was upgraded interms of functionality,visual design and content andstructure,in line with international standards,so as toprovide a top class browsing experience to visitors andpromote more effectively products,services,actionsand overall corporate image.The new

311、web portalreflects the Groups innovative profile and aims atproviding efficient services and forging businessrelationships with existing and new customers.By harnessing cutting-edge technologies,NBG50provides real time information about the Group and itsproducts and services for individuals and busi

312、nesses.It is also a point of reference for shareholders andvisitors,as the number of visitors to the web portalposted a steady increase in 2012(on average,368,000unique visitors carry out 1.5 million visits per month,searching for information on 4.7 million pages).In2012,the use of internet,phone an

313、d mobile bankingnetworks continued to grow.New transactioncategories and improvements were incorporated intothe Internet Banking functions.Mobile banking iscurrently available for all smartphones(iPhone,Android,Blackberry,Windows Mobile,Symbian)andsteadily doubles its users(DIAGRAM 2.5.2).Internet B

314、anking subscribers totalled 675,000.Some55 million transactions worth 18.8 billion were carriedout via internet,phone and mobile banking(DIAGRAMS2.5.3 and 2.5.4).In 2012,NBG continued to promote its i-bank productsand services,with a focus on corporate customers.320visits to businesses were made;1,7

315、16 inactivebusiness-users were activated,while 5,761 newindividual-users signed up.The promotion of targetedIKA-VAT transactions and mass payroll transactionsproved to be particularly successful,generating IKApayments of 35.5 million,VAT payments of 43.9million,and mass payroll payments of 82.07 mil

316、lion.At 31.12.2012,the Banks ATM network comprised 1,344s(834 on-site and 510 off-site),56 fewer than theprevious year,as a result of efforts to reduce thenetworks operating expenses.579 of these ATMs havecash deposit facilities.In 2012,the volume of ATM transactions declinedslightly(DIAGRAM 2.5.5).

317、However,although thenumber of cash machines was smaller,no less than100.52 million transactions were effected through theNBG network(approximately 100 thousand fewer thanin 2011),of a total value of 16.25 billion.The fraud monitoring department successfullyprevented fraudulent transactions against 3

318、85 cards in112 cases of financial fraud,a lower number than in2011 because of the replacement of the magnetic stripof the older ETHNOcash cards with chip technology inthe new cards.At 31 December 2012,the Bank also ran 33 APSCentres,via which 669,193 transactions were effected.Customer transaction b

319、ehaviour at ATMs wasinfluenced by the ongoing financial crisis.Accordingly:?Sharp increase in the number of withdrawals,es-pecially following announcements regarding ad-ACTIVITIES OF THE GROUP IN GREECE2SECTION51verse economic developments in Greece.?Uneven pace of withdrawals,with alternating highl

320、evels of withdrawals on salary and pension pay-days and very low withdrawal levels on the otherdays.?ATM faults due to increased use.To address these issues,NBG provided appropriatereporting and timely planning.In addition,the following related works were launched:?Procurement of a Cash Management s

321、ystem,?Integration of ATM graphic screens plus proposalfor project to create compatibility with ECB 6,PCIstandards and the creation of the necessary TCP/IPinfrastructure,?Physical ATM security,?Upgrading of the Gasper monitoring system,in order to further reduce operating costs,upgrade thenetwork,pr

322、ovide high quality services to customersand improve internal infrastructures and processesrelating to ATMs.Technological upgradeThe Bank places emphasis on taking full advantage of thefacilities offered by new technologies,as part of its effortsto improve business processes and make them moreefficie

323、nt,saving time and money.Thus,the Group soughtto improve its IT infrastructures,aiming to reduceoperating costs,create economies of scale,and optimizecustomer service.Exploiting the state-of-the-art facilities of its Athens DataCentre(DC),NBG continued its efforts to gather andconsolidate all of the

324、 Groups IT systems in Athens(DataCentre Consolidation).Top quality equipment(EnterpriseGrade)is used for the support of key banking applications(24,SAP,AML and other),while the operation of systemsis fully computerized with the use of special IT tools.Moreover,NBG deployed an integrated solution for

325、 therecovery of production systems from disaster,byintroducing pioneering techniques in data copying(Synchronous Copy Data Mirroring),which ensure thatsystems continue operating in the event of disaster.In view of the fact that the effective management of ITservices generates cost benefits and in th

326、e wake ofupgrades of key banking systems carried out in 2011,theGroup further pursued its measures to adapt tointernational standards.Being one of the three Greekorganizations certified according to ISO 20000,NBGexpanded the implementation of the model to moreservices,so as to attain smoother and co

327、ntrolledoperations,as part of its ongoing improvementmeasures.In response to customer requirements for innovativeservices,speed of transactions,high availability andlower costs,NBG has upgraded its telecom network.In2012,following assessment of the results of a pilotapplication,NBG launched its New

328、Data and VoiceTelecom Network in all its units.In its ongoing endeavour to provide better services tobusinesses and individuals,the Bank has completed thephased shift of its units to use of internet telephony(IP),with deployment of nstant essaging Service(IMS)in itslarger units and servicing of POS

329、via direct ADC calls.Moreover,fax services were upgraded and MPS(Managed Print Services)were expanded with thereplacement of printers.2.6 NBG OMBUDSMANThe NBG Ombudsman who reports directly to the BoDand operates independently in a“unit of amicablesettlement of disputes”provided amicable solutions t

330、ocustomer disputes with the Bank and Ethniki Insurance.In 2012,a year of recession in Greece and internationally,the NBG Ombudsman:?reinforced customer confidence in NBG and EthnikiInsurance,acting as customer advisor,helper and ally,providing information,seeking solutions to issues thatarose,and fi

331、nding the best mutually satisfyingresolution.The impact of the economic crisis wasevident,as almost half of the complaints concernedcrisis-related issues.Of the total complaintsinvestigated(and which properly fall within theOmbudsmans jurisdiction),78.5%reached asuccessful resolution,while 66.0%were

332、 processedwithin one week.?enhanced the relationship of both the Bank andEthniki Insurance with their customers,independentauthorities and consumer associations,publishingarticles and interviews in newspapers andmagazines,participating in seminars organized by theBank and its insurance subsidiary an

333、d inpresentations and events,and meeting other bodies.52ACTIVITIES OF THE GROUP IN GREECE2SECTION532.7 HUMAN RESOURCESNBG recognizes that its human resources are the drivingforce behind its progress so far.In view of the currentadverse economic environment,effective HRmanagementaiming at combining experience with newideas and initiativesis the key component in the Groupsefforts to achieve growth.A