The new group is targeting an NPE ratio of c. 15% by end 2019 and single digit by 2021
HIGHLIGHTS
• Creates Strongest Greek Bank Poised for Broader Economic Growth: The merger creates the best capitalized bank in Greece, with total capital ratio at 19%, ready to serve its clients, return to growth and support economic activity in Greece and Southeastern Europe.
• De-risking the Balance Sheet: Eurobank plans to substantially accelerate NPE reduction to a ratio of approximately 15% by the end of 2019 and single digit by 2021 with an NPE
deconsolidation of approximately €7 billion in a single transaction with all shareholders keeping potential upside from the NPEs (“Acceleration Plan”).
• Highly Accretive Combination: The merger is capital and earnings accretive; fully loaded CET1 increases to 13.8% and pre-provision income to €0.28 per share. The combined group is targeting strong sustainable earnings per share and over 10% return on tangible equity in 2020.
• Combination Unlocks Further Value: Applying the best-in-class real estate management skills of the Grivalia team led by Mr. George Chryssikos will unlock the value of the existing and future real estate assets of the combined group. Mr. Chryssikos will be proposed for nonexecutive Vice Chairman of the Board of Directors of Eurobank and will join the Strategic Planning Committee.
• Unanimous Approval: The merger is unanimously supported and recommended by both Boards of Directors.
The Boards of Directors (“BoD”) of Eurobank Ergasias S.A. (“Eurobank” or “Bank”) and Grivalia Properties REIC (“Grivalia”) announce that they unanimously decided to commence the merger of the two companies by absorption of Grivalia by Eurobank according to the relevant provisions of the corporate law, l. 2515/1997 and l. 2166/1993 as in force (the “Merger”).
Please find attached the Announcement (www.eurobank.gr) and Presentation (www.eurobank.gr/-/media) to Analysts of Eurobank Ergasias S.A., which are also available on the websites of the Bank and the Athens Exchange Group (ATHEX Group) (www.helex.gr)
