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Investor Presentaiton

B. Preliminary Group Financial Results - Underlying Basis (continued) B.3. Income Statement Analysis B.3.1 Total income € mn Net interest income FY2022 FY2021 (restated¹) 4Q2022 3Q2022 2Q2022 1Q2022 gog +% yoy +% 370 296 136 89 74 71 53% 25% Net fee and commission income 192 172 50 48 50 44 4% 12% Net foreign exchange gains and net gains/(losses) on financial 36 25 12 13 5 6 -8% 45% instruments Insurance income net of claims 71 61 and commissions 23 23 15 17 16 53% 17% Net gains/(losses) from revaluation and disposal of 13 13 2 4 2 5 -36% 4% investment properties and on disposal of stock of properties Other income 17 14 5 3 5 4 57% 17% Non-interest income 329 285 92 83 79 75 11% 16% Total income 699 581 228 172 153 146 33% 20% Net Interest Margin 1.65% 1.45% 2.36% 1.53% 1.33% 1.32% 83 bps 20 bps (annualised)² Average interest earning assets 22,483 20,436 22,855 22,997 22,436 21,942 -1% 10% (€ mn)2 1. Comparative information was restated following a reclassification of approximately €1 million loss relating to disposal/dissolution of subsidiaries and associates from 'Net foreign exchange gains and net gains/(losses) on financial instruments' to 'Other income' 2. Including the NPE portfolios classified as "Non-current assets and disposal groups held for sale", where relevant. p.p. = percentage points, bps = basis points, 100 basis points (bps) = 1 percentage point Net interest income (NII) for FY2022 amounted to €370 mn (including NII of c.€12 mn relating to Helix 3 which was completed in November 2022), compared to €296 mn in FY2021. The yoy increase of 25% reflects positive gearing to higher rates and to a lesser extend the growth of the performing loan book and fixed income portfolio, notwithstanding the foregone NII on the Helix 2 portfolio (c.€15 mn in FY2021). Net interest income (NII) for 4Q2022 amounted to €136 mn, compared to €89 mn for 3Q2022, up 53% qoq, driven by the immediate liquid assets repricing (including fixed income portfolio) and Euribor repricing. Average interest earning assets (AIEA) for FY2022 amounted to €22,483 mn, up by 10% yoy driven by the increase in liquid assets as a result of the increase in deposits by €1.5 bn yoy and the increase in the fixed income portfolio by c.€0.6 bn yoy. Quarterly average interest earning assets for 4Q2022 decreased by 1%, driven by the repayment of the TLTRO III borrowing of €1 bn in December 2022. Net interest margin (NIM) for FY2022 amounted to 1.65% (compared to 1.45% for FY2021) supported by the rising interest rate environment. Net interest margin (NIM) for 4Q2022 stood at 2.36%, up 83 bps qoq, attributed by the repricing of liquid assets and loans. Non-interest income for FY2022 amounted to €329 mn (compared to €285 mn for FY2021, up by 16% yoy), comprising net fee and commission income of €192 mn, net foreign exchange gains and net gains/(losses) on financial instruments of €36 mn, net insurance income of €71 mn, net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties of €13 mn and other income of €17 mn. The yoy increase is driven by higher net fee and commission income, higher insurance income net of claims and commissions and higher net foreign exchange gains and net gains/(losses) on financial instruments. Non-interest income for 4Q2022 amounted to €92 mn (compared to €83 mn for 3Q2022, up by 11% qoq), comprising net fee and commission income of €50 mn, net foreign exchange gains and net gains/(losses) on financial instruments of €12 mn, net insurance income of €23 mn, net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties of €2 mn and other income of €5 mn. The qoq increase relates mainly to higher insurance income net of claims and commissions. Net fee and commission income for FY2022 amounted to €192 mn, (compared to €172 mn for FY2021, up 12% yoy), driven by the introduction of a revised price list in February 2022 and the extension of liquidity fees to a wider customer group in March 2022. Liquidity fees were fully abolished in December 2022. Net fee and commission income for FY2022 includes an amount of c.€6 mn relating to a NPE sale-related servicing fee, for a transitional period ending in 1Q2023. 18
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