1. GEORGE MICHELIS,Ph.D Vice Chairman & General Manager COMMERCIAL BANK OF GREECE Greek Banking: Recent developments, future prospects

2. Source : Ministry of National Economy

3. Source : NSSG

10. The consolidation process: commercial banks 1995 2000 National Bank of Greece MortgageNational Bank of Greece Housing Alpha Credit Ionian Alpha Eurobank Interbank AthensEurobank - Ergasias Crete Ergasias Piraeus Macedonia-Thrace Piraeus Xios Egnatia Central Greece Egnatia Commercial Bank of Greece Bank of Attica General Bank

11. Market Shares in Greek Commercial Banks (1999) Source : Year-end Bank Financial Statements

12. Market Shares in Greek Commercial Banks (1999) Source : Year-end Bank Financial Statements

13. Market Shares in Greek Commercial Banks (1999) Source : Year-end Bank Financial Statements

14. Market Shares in the Banking System (1999) Source : Bank Financial Statements and Monthly Statistical Bulletin of The Bank of Greece Note : Total Assets for the Banking System as of 31/12/99 are not yet available

15. Market Shares in the Banking System (1999) Source : Bank Financial Statements and Monthly Statistical Bulletin of The Bank of Greece Note : Total Assets for the Banking System as of 31/12/99 are not yet available

16. Branch Network of Greek Commercial Banks (1999) Source : Bank Annual Reports

21. Increasingly competitive environment Privatisation and consolidation: Competitive awakening of NBG Privatisations create new private sectors groups challenging the established players (Latsis Group, Piraeus Bank) Middle-size players under increasing pressure to consolidate Indirect competition: Competition from non-financial institutions is compressing interest margins Capital markets disintermediation is eroding bank’s traditional role Operating conditions: Thinning lending spreads Higher consumer expectations Increasing dependence on technology investments Progressive disappearance of trading gains EMU: Profits from EMU currency trading will disappear Pressure on margins to converge to European average Preparing for EMU will cost in excess of GRD 150 billion

22. Conclusions Competitive environment } increased quality of service more & better products cost reduction efforts Great challenges } further consolidation alliances euro adoption Good opportunities } new activities (bankassurance) underbanked markets(consumer credit-asset management) expansion in Balkans