FIRST HALF 2001 RESULTS (IAS)

30% GROWTH in LOANS and DEPOSITS 3.5% RISE in EARNINGS before tax and OPERATING INCOME

30% GROWTH in LOANS and DEPOSITS 3.5% RISE in EARNINGS before tax and OPERATING INCOME
EFG Eurobank Ergasias announced consolidated financial results for the first half of 2001 under International Accounting Standards (IAS) and Greek Accounting Standards (GAS). There are marginal differences in first half 2001 figures under IAS and GAS. In the first half of the previous year (2000) such differences were more material and were, among others, due to differences in the consolidation of the former Bank of Crete and in the evaluation of the trading portfolio, including derivatives. All figures and growth rates mentioned below are under IAS.In the first half of year 2001, consolidated profit before tax of EFG Eurobank Ergasias Group reached Grd 64 billion or € 187 million. Profit before tax attributable to the shareholders of EFG Eurobank Ergasias Group rose 3.5% y.o.y. reaching Grd 61.5 billion or € 181 million, from Grd 59.4 billion or € 174 million in the first half of 2000. Consolidated net profit after tax and minorities reached Grd 42 billion or €123 million, increased by 28% compared to the first half of the previous year.Total Assets increased 24.4% to Grd 7 trillion or € 20.5 billion, reflecting strong growth in business volumes. This was driven by continued robust growth of 30% in Loans and advances to clients, which reached Grd 3.2 trillion or € 9.4 billion and an increase of 30% in Customer Deposits, which stood at Grd 5.3 trillion or € 15.6 billion. Core banking revenue, comprising net interest income and net fee and commission income, increased 8.2% compared to the first half of 2000, to Grd 136 billion or € 400million, contributing 85% of Total Operating Income. The strong rise of 24% in net interest income to Grd 99.5 billion or € 292 million more than offset the 20% contraction of net fee and commission income to Grd 37 billion or € 108 million. Total operating income rose 3.5% to Grd 160 billion or € 469 million. Return on average Equity (ROE) pre tax exceeded 18%, while Return on average Assets (ROA) before tax was 2.0%. After tax ROE was 13.8% and after tax ROA was 1.3%. The net interest margin remained at high levels of over 3%, mainly due top the composition of the group’s loan portfolio. Key Figures and trends in the first half of 2001

Loan growth was robust at 30% to Grd 3.2 trillion or € 9.4 billion, driven by retail lending. Consumer credit increased 59% yoy to Grd 585 billion or € 1.7 billion and mortgage credit increased 38% yoy to Grd 502 billion or € 1.5 billion. Continued strong growth has brought retail lending to 39% of the total loan portfolio at the end of the first half of 2001, from 34% at the end of June 2000.

Customer Deposit growth was also strong at 30% to Grd 5.3 trillion or € 15.6 billion. Of these, Repos accounted for Grd 2.0 trillion or € 6.0 billion, in line with market trends.

Total Assets increased 24% to Grd 7 trillion or € 20.5 billion. Loans accounted for 46% of Total Assets, compared to 44% in the first half of 2000 and for 60% of Deposits and Repos (unchanged). The bank utilised its EMTN facility through a second bond issue in the first half of the year, and has raised a total € 400m.

Customer Assets Under Management, at current prices, reached Grd 7.2 trillion or € 21 billion, recording an increase of 5.8 %. It is worth noting that this was achieved despite the significant drop in the value of domestic equity portfolios. The bank rigorously pursues its strategy to become the preferred wealth manager for individuals, corporates and institutional funds in Greece.

Net Interest Income increased 24% to Grd 99.5 billion or € 292 million. The net interest margin (net interest income over average total assets, annualised) remained comfortably above 3%, due to the strong position of the bank in the market’s most profitable segments.

First half results were burdened by the 20% contraction of Net Fee and Commission income, which reached Grd 37 billion or € 108 million, due to the continued weakness of the Greek capital market in H1 2001. This was marked by the further slide of Athens Stock Exchange prices by 19% and of trading activity by 68%. Furthermore, the adoption of the euro has had a negative structural effect on FX fees, given the dominance of transactions with eurozone countries in Greek external economic relations.

Adverse capital market conditions were also reflected on Gains less losses from other securities as well as on Income from Associates (mainly closed-end funds). Overall, 85% of total operating revenues were generated from organic sources, compared to 82% in H1 2000. Therefore there is room for significant improvement in revenue generation from capital market related activities upon stabilisation of the domestic market, given the group’ s strong position..

Despite the slide of non-interest income, Total Operating Income increased 3.5% to Grd 160 billion or € 469 million, from Grd 154 billion, or € 453 million in the first half of 2000.

The deceleration in the expansion of Operating Costs reflects the effort to further enhance the Group’s competitiveness. Personnel expenses and other administration costs increased 8.6%. On the other hand operating cost was significantly burdened with the depreciation of IT and infrastructure investments, which aim at long term productivity gains. Nevertheless the cost-to-average assets ratio improved to 2.7% from 2.9% in the first half of 2000.

NPLs from Group activities remain below 3%, while including NPLs from the acquisitions of the Bank of Athens and the Bank of Crete, which are fully covered by provisions, total NPLs have fallen to 4.1%. Total provisions cover more than 80% of total NPLs.

Capital Adequacy Ratio remains very strong at 14.2% 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.MERGER WITH TELESIS INVESTMENT BANK
The all share merger of EFG Eurobank Ergasias and Telesis Investment Bank, with the exchange of 1.0 EFG Eurobank Ergasias share for every 2.2 shares of Telesis Investment Bank, will be tabled for approval at General Meetings of both banks in September. The completion of the merger is subject to the approval of the Bank of Greece and the Competition Commission. The operational merger should be concluded before the end of the year.