Press Releases: Greece

BANK OF ATTICA S.A.

1st Half Year 2006 Financial Results

August 30, 2006 Main developments during the first half of 2006: - Following the restructuring of the Banks portfolio in 2005, there was a gradual improvement in the Banks figures and operating income. - The Globus project was completed, thus creating the conditions for the modernisation of the standard operating processes and the improvement of the products and services offered by the Bank. - A new system of credit scoring was introduced for the effective valuation of the loans portfolio and the control of the risks undertaken by the Bank. - The Banks e-banking system was put in place, thus widening the channels through which the Bank approaches its customers. - Two new branches were established. Three new branches are planned to start operating by the end of the year. - Fifty-two employees (nearly 5% of the total number of employees) took advantage of the Banks early retirement scheme, which reduced the Banks profits by 2.500 thousand euros (The total cost is expected to reach 5.100 thousand euros). In the medium term, the early retirement scheme will help the Bank reduce costs and take advantage of younger and more dynamic employees. Unfortunately, the Banks operation and financial results were affected negatively by the wrongdoings of some of its employees which came to light in July. The cost of these malpractices is not expected to exceed 4 million euros. The Management of the Bank, standing firmly by its commitment to transparency, has decided to create a 4 million euro provision in its Q2 statements to cover eventual losses resulting from these malpractices. Financial Figures of the Bank During the second quarter of 2006: - The Bank's total assets were 2,722.5 million, up by 10.3% when compared to 31/12/2005. - Total deposits and similar liabilities were 2,278 million euros, up by 16.4% when compared 31/12/2005 and 16.8% on a year-on-year basis. - Total lending (loans and corporate bonds) were 2,112.9 million euros, up by 10.2% when compared to 31/12/2005 and 13.9% on a year-on-year basis. - More specifically: - Consumer lending increased by 12.4% and 22.1% accordingly - Mortgages increased by 19.9% and 48.8% accordingly. These percentages are substantially higher than the growth rates of housing lending in the Greek banking system as a whole. Accumulated provisions are 112.8 million euros, exceeding eventual bad debts. Lending In million euros 30/06/2006 (1) 31/12/2005 (2) 30/6/2005 (3) Change (1)/(2) Change (1)/(3) LENDING 2,016.2 1,829.6 1,800.3 10.2% 12.0% Of which: - Consumer Lending 291.6 259.4 238.8 12.4% 22.1% - Mortgages 306.7 255.7 206.1 19.9% 48.8% CORPORATE BONDS 96.7 87.4 54.0 10.6% 79.0% TOTAL LENDING 2,112.9 1,917.0 1,854.3 10.2% 13.9% Financial Results of the Bank The Bank's profits before taxes (before provisions for early retirement benefits and for losses resulting from malpractice) were 6,656 thousand euros (Q2 2005: 153 thousand). If the provisions for early retirement benefits (2,500 thousand euros) and the costs resulting from malpractice (4,000 thousand euros) are not taken into consideration, profits before taxes are 237 thousand euros (in Q2 2005 the Bank recorded losses amounting to 2,131.4 thousand euros). The Bank's summary financial results are presented in the table below: Attica Bank: Summary financial results, Q2 2006 In thousand euros Q2 2006 Q2 2005 Change % Net interest income 39,215.11 37,217.22 5.4% Commissions and other income 18,051.91 16,169.60 11.6% Income from trading 1,554.17 2,170.76 -28.4% Investments in subsidiaries* 339.50 1,135.40 -70.0% Operating income 59,160.69 56,692.98 4.4% Wages and Staff expenses 26,172.01 25,073.11 4.4% Expenses for legal actions 1,050.35 636.90 64.9% Television advertising 952.81 489.17 94.8% Other operating expenses 11,429.61 9,773.32 16.9% Total Operating expenses 39,604.78 35,972.50 10.0% Profits before provisions and depreciation 19,555.91 20,720.48 -5.6% Depreciation 2,877.51 2,527.32 13.9% Provisions for credit risks 10,022.43 18,040.00 -44.4% Profits (before provisions for early retirement benefits and for losses resulting from malpractice) 6,655.97 153.16 4,245% Early retirement expenses ** 2,500.00 == == Provisions for losses resulting from malpractice ** 4,000.00 Profits before taxes 155.97 153.16 1.8% Profits after taxes 237.05 -2,131.41 999.1% * Investments in subsidiaries in Q2 2005 included capital gains from Attikis Investments S.A. that was later transformed in to two foreign mutual funds. ** In the financial statements, early retirement expenses fall under Wages and Staff Expenses whereas provisions for losses resulting from malpractice are included in General Operating Expenses. Consolidated financial results The consolidated results for the Q2 2006 are presented in the table that follows. According to the information contained in the table:- Consolidated profits (before provisions for early retirement benefits and losses resulting from malpractice) were 6,741.91 thousand euros (Q2 2005: 912.89 thousand euros). - Consolidated profits after taxes were 297.29 thousand euros (in Q2 2005 the Bank recorded losses amounting to 1,633.55 thousand euros). Consolidated Financial Results In thousand euros Q2 2006 Q2 2005 Change % Net interest income 40,143.64 38,699.69 3.7% Commissions and other income 19,306.11 16,855.23 13.9% Income from trading 1,559.98 3,280.55 -52.4% Operating income 61,009.74 58,835.47 3.5% Wages and Staff expenses 26,857.85 25,844.83 3.9% Expenses for legal actions 1,050.35 636.90 64.9% Television advertising 952.81 489.17 94.8% Other operating expenses 11,780.89 10,308.35 14.3% Total Operating expenses 40,641.90 37,279.25 9.0% Profits before provisions and depreciation 20,367.84 21,556.23 -5.5% Depreciation 2,903.50 2,603.34 11.5% Provisions for credit risks 10,722.43 18,040.00 -40.6% Profits (before provisions for early retirement benefits and for losses resulting from malpractice) 6,741.91 912.89 638.5% Early retirement expenses * 2,500.00 == == Provisions for losses resulting from malpractice * 4,000.00 Profits before taxes 241.91 912.89 Profits after taxes 297.29 -1,633.55 649.5% * In the financial statements, early retirement expenses fall under Wages and Staff Expenses whereas provisions for losses resulting from malpractice are included in General Operating Expenses. The profits of the companies of the Group are presented in the table below: Profits/losses before taxes Profits/losses after taxes Q2 2006 Q2 2005 Q2 2006 Q2 2005 Αttikis Leasing* -193.6 392.0 -137.5 260.1 Attica Mutual Funds Management S.A. 347.9 -4.2 330.4 -4.2 Attica Consulting and Training Services S.A. 1.3 76.1 0.8 5.0 Attica Ventures 151.2 140.5 121.9 110.6 Attica Bancassurance S.A. 118.6 - 84.2 - * In Q2 2006, Attikis Leasing made provisions amounting to 700 thousand euros for unforeseeable risks. No such provisions were made in Q2 2005.