Agreement to sell a portfolio of non-performing loans

2 January 2018

Hellenic Bank Public Company Ltd (the Bank) has entered into an agreement to sell a non-performing loan portfolio of predominantly non-retail secured and unsecured exposures to B2Kapital Cyprus Ltd, a wholly owned subsidiary of B2Holding ASA, a Norwegian corporation listed on the Oslo Stock Exchange (the Transaction). The Transaction is part of the Bank’s non-performing portfolio reduction programme and is at arm’s length.

The gross outstanding balance of the assets which are being sold pursuant to the Transaction is €145m comprising of 1.158 borrowers and 1.977 facilities (in each case as at September 2017). The Transaction, which is not expected to have a material impact on the income statement and capital position of the Bank due to existing provisions taken against these assets, is a step towards reducing the Bank’s exposure to non-performing assets as it reduces the level of the Bank’s non-performing loans by 6,2% based on non-performing exposures as at 30 September 2017.

The Transaction is consistent with the Bank’s strategy of “fixing” the balance sheet and at the same time it is in line with the European Central Bank and International Monetary Fund guidelines on the management of non-performing loans. In addition to organic reduction of the problematic portfolio, the Bank remains focused to accelerate the de-risking of its non-performing exposures through portfolio disposals and other transactions.

The completion of the Transaction is subject to the completion of the required procedures under the relevant legislation, the obtaining of applicable approvals and clearances from the relevant regulatory authorities and is targeted to be achieved by the end of the first quarter of 2018.