FIRST QUARTER 2002 RESULTS

FIRST QUARTER 2002 RESULTS
(According to International Accounting Standards)
Strong Growth and maintenance of Organic Profitability

FIRST QUARTER 2002 RESULTS
(According to International Accounting Standards)Strong Growth and maintenance of Organic ProfitabilityEFG Eurobank Ergasias announces consolidated financial results for the first quarter of 2002 under International Accounting Standards (IAS) and Greek Accounting Standards (GAS). Differences in 1Q 2002 figures under IAS and GAS are mainly due to differences in the valuation of derivatives. Differences in 1Q 2001 are mainly attributable to the fact that according to GAS former Telesis Investment Bank is consolidated from the first quarter of 2001, while according to IAS it is consolidated from the last quarter of 2001. In the first quarter of 2002, profit before tax attributable to the shareholders of EFG Eurobank Ergasias amounted to € 93 million, from € 115 million in 1Q 2001 (-19%). Consolidated net profit after tax and minorities stood at € 67 million, compared to € 86 million the same period a year earlier. Excluding the extraordinary real estate gains of € 22 million, which came from the long-term lease of King George hotel and increased 1Q 2001 results, net profit rose by 5.5%. EFG Eurobank Ergasias Group maintained its strong organic growth and a high net interest margin in the first quarter of 2002, against a backdrop of intense competition. This fact confirms the strategy of the Bank to increase organic revenues and profitability through the exploitation of cross-selling potential, cost containment and the improvement in service quality. EVOLUTION OF KEY FIGURES IN 1Q 2002Total Assets reached € 21.8 billion (from € 18.4 billion), reflecting continuous robust growth in business volumes. The increase is mainly attributable to the significant growth of Loans to € 11.4 billion, from € 8.6 billion at the end of March 2001.

Loans increased organically, excluding Telesis Investment Bank, by 27%. The y-o-y loan growth rate of EFG Eurobank Ergasias remains one of the fastest in the market. Specifically, Consumer Credit rose by 50% and Mortgage Credit by 39%. The continuous rapid growth of the retail loan portfolio has resulted in the further shift of the total loan mix towards retail, which accounted for 43% of the total loan portfolio at the end of the first quarter of 2002, as opposed to 39% at the end of March 2001. Total loans and advances to clients represented 52% of total assets and 72% of customer deposits. Despite the strong growth in loans, the quality of the loan portfolio has been maintained at high levels. Non-performing loans (NPLs) from Group activities remain steadily below 3% of the total loan book and are more than 80% covered by provisions, which is one of the highest NPL coverage ratios in the Greek banking sector.

Customer Deposits increased by 6.5% and amounted to € 15.9 billion (of which € 3.8 billion represented repos), from € 14.9 billion in the first quarter of 2001, when deposits had risen substantially. Customer Deposits excluding repos rose significantly by 19% reaching € 12.4 billion, while repos dropped by 15%. Total Assets Under Management, at current prices, rose by 4% and amounted to € 22 billion. This increase was achieved despite the further significant drop in the value of clients’ domestic equity portfolios in the first quarter of 2002. Net Interest Income rose by 16% and amounted to € 168 million, from € 145 million the same period of 2001. Net interest margin (net interest income over avg. total assets) has remained above 3%, signifying the strong position of EFG Eurobank Ergasias Group in the market’s most profitable segments. Net Fee and Commission Income remained flat at € 61 million relative to 1Q 2001. This was achieved as the increase in commission income from lending activities offset the contraction of fee income from ASE-related operations, and the further decrease of the average market turnover by 40% during 1Q 2002 compared to 1Q 2001. Consequently, stock market-related commissions as a percentage of total commissions were restricted to 10%, from about 15% in the same quarter of 2001. The rise of net interest income and the maintenance of net fee and commission income at the levels of the first quarter of 2001 led to a satisfactory increase of Core Income (net interest income and net fee and commission income) by 11% to € 229 million, from € 206 million in 1Q 2001. As a result, Core Income contributed 91% to Total Operating Income, compared to 83% in the same period of 2001. The total of Net trading income plus Gains less Losses from other Securities remained at the 1Q 2001 level of € 20 million, of which income from bonds was € 15 million, against € 22 million in the same quarter of 2001. Total Operating Income increased marginally to € 251 million, from € 250 million in the same quarter of the year 2001, whereas excluding the one-off real estate gains, core organic income rose by 10%, from € 228 million to € 251 million. The cost-to-total income ratio, which shows the efficiency of the Group, improved significantly to 55.3%, from 58.1% at the end of 2001, as did the cost-to-average assets ratio, which declined to 2.7%, from 3.0% at the end of 2001. Total Operating Expenses increased by 14.6% y-o-y. However, it is noted that on the one hand they include extraordinary costs relating to the introduction of the Euro, while on the other hand operating expenses of Telesis Investment Bank are not included in 1Q 2001. Operating expenses compared on a quarterly basis (1Q 2002 to 4Q 2001, both quarters including the costs of Telesis) have fallen by 14%.The Capital Adequacy Ratio remains strong at 14.1%, confirming the ability of the Group to maintain high growth rates, without having to resort to shareholders in order to raise new capital in the foreseeable future. Return on average Equity (ROE) pre tax, after minorities, stood at 18.5%, while Return on average Assets (ROA) before tax remained among the highest in the sector (1.9%). Return on average Equity (ROE) after tax and minorities was 13.4% and Return on average Assets (ROA) after tax was 1.3%.GREEK GAAP (GAS) AND INTERNATIONAL ACCOUNTING STANDARDS (IAS) EFG Eurobank Ergasias has long opted for reporting its financial results according to IAS and GAS, focusing however the analysis of these results in the statements prepared according to IAS. Financial statements and results based on IAS fully reflect the Group’s financial position, and allow for comparisons with other banks worldwide. On the other hand, GAS are restricted by Greek tax legislation. According to a Law recently passed by the Greek Parliament, the Societes Anonymes whose shares are listed on the Athens Stock Exchange, will have to prepare their annual, as well as their quarterly financial statements according to the International Accounting Standards, for all fiscal years or periods ending after December 31, 2002. According to Greek GAAP, the results for the Group of EFG Eurobank Ergasias in 1Q 2002 compared to 1Q 2001 are as follows:
Total Assets amounted to € 19.8 billion, from € 19.7 billion. Loans and advances to clients reached € 11.4 billion, from € 9.1 billion. Customer Deposits exceeded € 16 billion, from € 15.8 billion at the end of March 2001. Net Interest Income (including net interest from leasing operations and excluding bond gains) amounted to € 168 million from € 157 million, while the net interest margin remains above 3%. Core Banking Revenue (net interest income and net fee and commission income) reached € 229 million from € 224 million. Total Operating income stood at € 241 million, from € 248 million. Consolidated net profit after tax and minorities reached € 61 million, from € 93 million the same period a year earlier.