Investor Presentaiton

B. Preliminary Group Financial Results- Underlying Basis (continued) B.1 Unaudited reconciliation of consolidated income statement for the year ended 31 December 2022 between statutory basis and underlying basis (continued) 'Net gains on derecognition of financial assets measured at amortised cost' of €5 million under the statutory basis comprise of the below items which are reclassified accordingly under the underlying basis as follows: €6 million net gains on derecognition of loans and advances to customers included in 'Loan credit losses' under the underlying basis as to align to the presentation of the loan credit losses arising from loans and advances to customers. Net losses on derecognition of debt securities measured at amortised cost of approximately €1 million included in 'Net foreign exchange gains and net gains on financial instruments' under the underlying basis in order to align their presentation with the gains/(losses) arising on financial instruments. Provisions for pending litigations, regulatory and other matters (net of reversals) amounting to €11 million included in 'Total expenses' under the statutory basis, are separately presented under the underlying basis in conjunction with loan credit losses and impairments. Advisory and other restructuring costs of approximately €11 million included in 'Other operating expenses' under the statutory basis are separately presented under the underlying basis since they comprise mainly fees to external advisors in relation to the transformation programme and other strategic projects of the Group. Total expenses under the statutory basis include restructuring costs relating to Voluntary Staff Exit Plans (VEP) of €104 million and are separately presented under the underlying basis, since they represent one-off items. 'Credit losses on financial assets' and 'Impairment net of reversals of non-financial assets' under the statutory basis include: i) credit losses to cover credit risk on loan and advances to customers of €56 million, which are included in 'Loan credit losses' under the underlying basis, and ii) credit losses of other financial instruments of €3 million and impairment net of reversals of non-financial assets of €30 million which are included in 'Impairments of other financial and non-financial assets' under the underlying basis, as to be presented separately from loan credit losses. 10

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