National Bank of Greece (NBGIF) 6-K Current report (foreign)

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to rule 13a-16 or 15d-16 of

The Securities Exchange Act of 1934

For the month of May, 2016

National Bank of Greece S.A.

(Translation of registrant’s name into English)

86 Eolou Street, 10232 Athens, Greece

(Address of principal executive offices)

[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]

Form 20-F       x         Form 40-F        o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.]

Yes    o        No   x

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-               ]

National Bank of Greece S.A.

Interim Consolidated Financial Statements
31 March 2016

May 2016

Table of Contents

Statement of Financial Position		3
Income Statement		4
Statement of Comprehensive Income		5
Statement of Changes in Equity		6
Cash Flow Statement		7
NOTE 1:	General information	8
NOTE 2:	Summary of significant accounting policies	9
2.1	Basis of preparation	9
2.2	Going concern	9
2.3	Adoption of International Financial Reporting Standards (IFRS)	10
2.4	Critical judgments and estimates	11
NOTE 3:	Segment reporting	11
NOTE 4:	Credit provisions and other impairment charges	13
NOTE 5:	Tax benefit /(expense)	14
NOTE 6:	Earnings / (losses) per share	14
NOTE 7:	Loans and advances to customers	14
NOTE 8:	Non-current assets held for sale and liabilities associated with non-current assets held for sale	15
NOTE 9:	Due to customers	17
NOTE 10:	Contingent liabilities, pledged, transfers of financial assets and commitments	17
NOTE 11:	Share capital, share premium and treasury shares	19
NOTE 12:	Tax effects relating to other comprehensive income / (expense) for the period	19
NOTE 13:	Related party transactions	20
NOTE 14:	Capital adequacy	20
NOTE 15:	Fair value of financial assets and liabilities	22
NOTE 16:	Group companies	27
NOTE 17:	Events after the reporting period	29
NOTE 18:	Reclassifications of financial assets	29

2

Statement of Financial Position

as at 31 March 2016

		Group
€ million	Note	31.03.2016		31.12.2015
ASSETS
Cash and balances with central banks		1,873		2,208
Due from banks		2,753		2,799
Financial assets at fair value through profit or loss		2,630		2,486
Derivative financial instruments		4,861		3,895
Loans and advances to customers	7	45,015		45,375
Investment securities		16,295		16,117
Investment property		872		869
Equity method investments		16		16
Goodwill, software and other intangible assets		142		147
Property and equipment		1,315		1,325
Deferred tax assets		5,093		5,096
Insurance related assets and receivables		616		601
Current income tax advance		578		579
Other assets		1,743		1,952
Non-current assets held for sale	8	27,941		27,767
Total assets		111,743		111,232
LIABILITIES
Due to banks		25,003		25,166
Derivative financial instruments		5,693		4,638
Due to customers	9	42,047		42,959
Debt securities in issue		1,128		1,106
Other borrowed funds		150		146
Insurance related reserves and liabilities		2,234		2,226
Deferred tax liabilities		8		9
Retirement benefit obligations		271		273
Current income tax liabilities		10		10
Other liabilities		1,406		1,232
Liabilities associated with non-current assets held for sale	8	23,931		23,643
Total liabilities		101,881		101,408
SHAREHOLDERS’ EQUITY
Share capital	11	2,744		2,744
Share premium account	11	13,866		13,866
Less: treasury shares	11	(1	)	(1	)
Reserves and retained earnings		(6,503	)	(6,577	)
Amounts recognised directly in equity relating to non-current assets held for sale		(3,008	)	(2,962	)
Contingently convertible bonds		2,029		2,029
Equity attributable to NBG shareholders		9,127		9,099
Non-controlling interests		735		725
Total equity		9,862		9,824
Total equity and liabilities		111,743		111,232

Athens, 26 May 2016

THE CHAIR OF THE BOARD OF	THE CHIEF EXECUTIVE	THE DEPUTY CHIEF EXECUTIVE	THE CHIEF FINANCIAL
DIRECTORS	OFFICER	OFFICER	OFFICER
LOUKIA-TARSITSA P. KATSELI	LEONIDAS E. FRAGKIADAKIS	PAUL K. MYLONAS	IOANNIS P. KYRIAKOPOULOS

The notes on pages 8 to 29 form an integral part of these financial statements

3

Income Statement

for the period ended 31 March 2016

		Group
		3 month period ended
€ million	Note	31.03.2016			31.03.2015
Continuing Operations
Interest and similar income		589			665
Interest expense and similar charges		(110		)	(168		)
Net interest income		479			497
Fee and commission income		84			85
Fee and commission expense		(41		)	(56		)
Net fee and commission income		43			29
Earned premia net of reinsurance		105			131
Net claims incurred		(87		)	(99		)
Earned premia net of claims and commissions		18			32
Net trading income / (loss) and results from investment securities		13			(102		)
Net other income / (expense)		(22		)	(10		)
Total income		531			446
Personnel expenses		(196		)	(199		)
General, administrative and other operating expenses		(83		)	(88		)
Depreciation and amortisation on investment property, property & equipment and software & other intangible assets		(30		)	(29		)
Credit provisions and other impairment charges	4	(192		)	(389		)
Share of profit / (loss) of equity method investments		3			1
Profit / (loss) before tax		33			(258		)
Tax benefit / (expense)	5	(7		)	(5		)
Profit / (loss) for the period from continuing operations		26			(263		)
Discontinued Operations
Profit / (loss) for the period from discontinued operations		71			114
Profit / (loss) for the period		97			(149		)
Attributable to:
Non-controlling interests		10			10
NBG equity shareholders		87			(159		)
Earnings / (losses) per share - Basic from continuing operations	6	€	0.00		€	(1.16	)
Earnings / (losses) per share - Diluted from continuing operations	6	€	0.00		€	(1.16	)
Earnings / (losses) per share - Basic from continuing and discontinued operations	6	€	0.01		€	(0.68	)
Earnings / (losses) per share - Diluted from continuing and discontinued operations	6	€	0.01		€	(0.68	)

Athens, 26 May 2016

THE CHAIR OF THE BOARD OF	THE CHIEF EXECUTIVE	THE DEPUTY CHIEF EXECUTIVE	THE CHIEF FINANCIAL
DIRECTORS	OFFICER	OFFICER	OFFICER
LOUKIA-TARSITSA P. KATSELI	LEONIDAS E. FRAGKIADAKIS	PAUL K. MYLONAS	IOANNIS P. KYRIAKOPOULOS

The notes on pages 8 to 29 form an integral part of these financial statements

4

Statement of Comprehensive Income

for the period ended 31 March 2016

		Group
		3 month period ended
€ million	Note	31.03.2016		31.03.2015
Profit / (loss) for the period		97		(149	)
Other comprehensive income / (expense):
Items that may be reclassified subsequently to profit or loss:
Available-for-sale securities, net of tax		25		(42	)
Currency translation differences, net of tax		(44	)	55
Cash flow hedge, net of tax		(40	)	11
Total of items that may be reclassified subsequently to profit or loss		(59	)	24
Other comprehensive income / (expense) for the period, net of tax	12	(59	)	24
Total comprehensive income / (expense) for the period		38		(125	)
Attributable to:
Non-controlling interests		10		10
NBG equity shareholders		28		(135	)

Athens, 26 May 2016

THE CHAIR OF THE BOARD OF	THE CHIEF EXECUTIVE	THE DEPUTY CHIEF EXECUTIVE	THE CHIEF FINANCIAL
DIRECTORS	OFFICER	OFFICER	OFFICER
LOUKIA-TARSITSA P. KATSELI	LEONIDAS E. FRAGKIADAKIS	PAUL K. MYLONAS	IOANNIS P. KYRIAKOPOULOS

The notes on pages 8 to 29 form an integral part of these financial statements

5

Statement of Changes in Equity – Group

for the period ended 31 March 2016

	Attributable to equity holders of the parent company																						Non- controlling
									Available-										Other				Interests
	Share capital			Share premium				Contingent	for-sale		Currency		Net		Cash		Defined		reserves &				&
	Ordinary	Preference		Ordinary	Preference	Treasury		Convertible	securities		translation		investment		flow		benefit		Retained				Preferred
€ million	shares	shares		shares	shares	shares		Securities	reserve		reserve		hedge		hedge		plans		earnings		Total		securities		Total
Balance at 1 January 2015	1,060	1,354		13,866	194	—		—	12		(1,975	)	(457	)	(18	)	(189	)	(4,235	)	9,612		854		10,466
Other Comprehensive Income/ (expense) for the period	—	—		—	—	—		—	(42	)	57		—		11		—		(4	)	22		2		24
Profit / loss for the period	—	—		—	—	—		—	—		—		—		—		—		(159	)	(159	)	10		(149	)
Total Comprehensive Income / (expense) for the period	—	—		—	—	—		—	(42	)	57		—		11		—		(163	)	(137	)	12		(125	)
Repurchase of preference shares	—	—		—	—	—		—	—		—		—		—		—		—		—		(1	)	(1	)
Acquisitions, disposals & share capital increases of subsidiaries/equity method investments	—	—		—	—	—		—	—		—		—		—		—		—		—		1		1
(Purchases)/ disposals of treasury shares	—	—		—	—	(1	)		—		—		—		—		—		—		(1	)	—		(1	)
Balance at 31 March 2015	1,060	1,354		13,866	194	(1	)	—	(30	)	(1,918	)	(457	)	(7	)	(189	)	(4,398	)	9,474		866		10,340
Movements to 31 December 2015	1,684	(1,354	)	—	(194)	—		2,029	41		(604	)	—		27		25		(2,029	)	(375	)	(141	)	(516	)
Balance at 31 December 2015and at 1 January 2016	2,744	—		13,866	—	(1	)	2,029	11		(2,522	)	(457	)	20		(164	)	(6,427	)	9,099		725		9,824
Other Comprehensive Income/ (expense) for the period	—	—		—	—	—			25		(44	)	—		(40	)	—		—		(59	)	—		(59	)
Profit / (loss) for the period	—	—		—	—	—			—		—		—		—		—		87		87		10		97
Total Comprehensive Income / (expense) for the period	—	—		—	—	—			25		(44	)	—		(40	)	—		87		28		10		38
Balance at 31 March 2016	2,744	—		13,866	—	(1	)	2,029	36		(2,566	)	(457	)	(20	)	(164	)	(6,340	)	9,127		735		9,862

The notes on pages 8 to 29 form an integral part of these financial statements

6

Cash Flow Statement

for the period ended 31 March 2016

	Group
	3-month period ended
€ million	31.03.2016		31.03.2015
Cash flows from operating activities
Profit / (loss) before tax	116		(128	)
Adjustments for:
Non-cash items included in income statement and other adjustments:	339		534
Depreciation and amortisation on property & equipment, intangibles and investment property	49		50
Credit provisions and other impairment charges	259		484
Provision for employee benefits	8		7
Share of (profit) / loss of equity method investments	(2	)	—
Dividend income from investment securities	(1	)	(1	)
Net (gain) / loss on disposal of property & equipment and investment property	(3	)	(33	)
Net (gain) / loss on disposal of investment securities	(3	)	5
Accrued interest from financing activities and results from repurchase of debt securities in issue	39		134
Amortisation of premiums /discounts of investment securities, debt securities in issue and borrowed funds	(18	)	(12	)
Valuation adjustment on instruments designated at fair value through profit or loss	14		(99	)
Other non-cash operating items	(3	)	(1	)
Net (increase) / decrease in operating assets:	(331	)	(3,792	)
Mandatory reserve deposits with Central Bank	(57	)	(334	)
Due from banks	(10	)	306
Financial assets at fair value through profit or loss	(334	)	(677	)
Derivative financial instruments assets	(295	)	(1,037	)
Loans and advances to customers	236		(1,828	)
Other assets	129		(222	)
Net increase / (decrease) in operating liabilities:	(535	)	3,027
Due to banks	(526	)	6,249
Due to customers	(468	)	(4,514	)
Derivative financial instruments liabilities	321		979
Retirement benefit obligations	(9	)	(7	)
Insurance related reserves and liabilities	9		317
Income taxes paid	(25	)	(98	)
Other liabilities	163		101
Net cash from / (for) operating activities	(411	)	(359	)
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired	—		(11	)
Disposal of equity method investments	—		2
Dividends received from investment securities & equity method investments	1		1
Purchase of property & equipment, intangible assets and investment property	(44	)	(78	)
Proceeds from disposal of property & equipment and investment property	4		53
Purchase of investment securities	(907	)	(910	)
Proceeds from redemption and sale of investment securities	560		945
Net cash (used in) / provided by investing activities	(386	)	2
Cash flows from financing activities
Proceeds from debt securities in issue and other borrowed funds	997		663
Repayments of debt securities in issue, other borrowed funds and preferred securities	(732	)	(640	)
Proceeds from disposal of treasury shares	—		27
Repurchase of treasury shares	—		(28	)
Share capital issue costs	(30	)	—
Net cash from/ (for) financing activities	235		22
Effect of foreign exchange rate changes on cash and cash equivalents	(22	)	28
Net increase / (decrease) in cash and cash equivalents	(584	)	(307	)
Cash and cash equivalents at beginning of period	4,192		4,449
Cash and cash equivalents at end of period	3,608		4,142

7

Notes to the Financial Statements

Group

NOTE 1:General information

National Bank of Greece S.A. (hereinafter “NBG” or the “Bank”) was founded in 1841 and its shares have been listed on the Athens Exchange since 1880. The Bank’s headquarters are located at 86 Eolou Street, Athens, Greece, (Reg. 6062/06/B/86/01), tel.: (+30) 210 334 1000, www.nbg.gr. By resolution of the Board of Directors the Bank can establish branches, agencies and correspondence offices in Greece and abroad. In its 176 years of operation the Bank has expanded on its commercial banking business by entering into related business areas. National Bank of Greece and its subsidiaries (hereinafter the “Group”) provide a wide range of financial services including retail and commercial banking, asset management, brokerage, investment banking, insurance and real estate at a global level. The Group operates in Greece, Turkey, UK, South East Europe (“SEE”) which includes Bulgaria, Romania, Albania, Serbia and FYROM, Cyprus, Malta, Egypt and South Africa.

The Board of Directors consists of the following members:

The Non-Executive Chair of the Board of Directors
Loukia-Tarsitsa P. Katseli
Executive Members
The Chief Executive Officer
Leonidas E. Fragkiadakis
The Deputy Chief Executive Officers
Dimitrios G. Dimopoulos
Paul K. Mylonas
Non-Executive Members
Stavros A. Koukos	Employees’ representative, Chairman of Federation of Greek Banks Employees (OTOE)
Efthymios C. Katsikas	Employees’ representative
Independent Non-Executive Members *
Petros K. Sabatacakis	Economist
Dimitrios N. Afendoulis	Economist, Secretary of the Executive Committee of John S. Latsis Public Benefit Foundation
Spyridon J. Theodoropoulos	Chief Executive Officer, Chipita S.A.
Greek State representative
Aggeliki J. Skandaliari
Hellenic Financial Stability Fund representative
Charalampos A. Makkas	Economist

* On 26 January 2016, Andreas C. Boumis resigned from his position as an independent non executive member of the Bank’s Board of Directors.

Directors are elected by the Bank’s General Meeting of Shareholders for a maximum term of 3 years and may be re-elected. On 19 June 2015, the Annual General Meeting of the Bank’s shareholders elected the above Board of Directors which was constituted as a body in its 19 June 2015 meeting. The term of the above members expires at the annual General Meeting of the Bank’s shareholders in 2018.

These interim financial statements have been approved for issue by the Bank’s Board of Directors on 26 May 2016.

8

Notes to the Financial Statements

Group

NOTE 2:Summary of significant accounting policies

2.1Basis of preparation

The condensed interim consolidated financial statements as at and for the 3 month period ended 31 March 2016 (the “interim financial statements”) have been prepared in accordance with International Accounting Standards 34 “Interim Financial Reporting”. These interim financial statements include selected explanatory notes and do not include all the information required for full annual financial statements. Therefore, the interim financial statements should be read in conjunction with the annual consolidated financial statements as at and for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as endorsed by the European Union (the “EU”).

The amounts are stated in Euro, rounded to the nearest million (unless otherwise stated) for ease of presentation.

Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current period.

The interim financial statements have been prepared under the historical cost convention, except for available-for-sale financial assets, financial assets and financial liabilities held at fair value through profit or loss and all derivative contracts, which have been measured at fair value.

2.2Going concern

Liquidity

Total Eurosystem and ELA funding has been significantly reduced as of 31 March 2016 to €22.8 billion and €10.9 billion, respectively, while the Bank’s liquidity buffer stood at €8.5 billion (cash value). As of 17 May 2016, Eurosystem funding decreased further to €21.9 billion, while ELA increased to €11.1 billion and the liquidity buffer amounted to €6.3 billion (cash value).

Macroeconomic developments

In 2016, economic activity in Greece continues to be affected by the downside pressures on growth from the GDP contraction in the second half of 2015 and the additional fiscal drag from the implementation of new fiscal measures to support the achievement of a targeted primary surplus in Government budget. Accordingly, GDP is estimated to decline further (-0.3% year-over-year in 2016, in constant prices), with the economy expected to return in positive growth in the second half of 2016.

On 25 May 2016 the Eurogroup reached a full staff-level agreement between Greece and the International Monetary Fund (the “IMF”), the European Central Bank (“ECB”), the European Union (“EU”) and the European Stability Mechanism (“ESM”) (collectively, the “Institutions”), in line with the Eurogroup statement adopted on 9 May 2016, in particular as regard the adoption of permanent structural measures, including revenue measures and the contingency fiscal mechanism. Accordingly, following the full implementation of all prior actions, the European Stability Mechanism (“ESM”) governing bodies are expected to endorse the supplemental Memorandum of Understanding(1) (“MoU”) and approve the disbursement of the second tranche of the ESM program. The second tranche under the ESM program amounting to EUR 10.3 billion will be disbursed to Greece in several disbursements, starting with a first disbursement in June 2016 (EUR 7.5 billion) to cover debt servicing needs and to allow a clearance of an initial part of arrears as a means to support the real economy. The subsequent disbursements will be made after the summer of 2016.

Furthermore, against the background of the forthcoming successful completion of the first review and the agreement on debt relief, the Eurogroup agreed on a package of debt measures which will be phased in progressively, as necessary to meet the agreed benchmark on gross financing needs and will be subject to the pre-defined conditionality of the ESM program. These measures are split into short, medium and long term. The short-term measures will be implemented after the closure of the first review up to the end of the program and include the smoothening of the European Financial Stability Facility (“EFSF”) repayment profile and the reduction of interest rate risks.

Capital adequacy

The Group’s Common Equity Tier 1 (“CET1”) ratio at 31 March 2016 was 14.4% (see Note 14) and is expected to increase further upon completion of the disposal of Finansbank, which is anticipated by 30 June 2016.

Going concern conclusion

Management concluded that the Bank is a going concern after considering (a) its current access to the Eurosystem facilities, (b) the agreement on 25 May 2016 between Greece and the Institutions regarding the completion of the first review of the new program agreed in 2015 and the approval for the disbursement of the second tranche, (c) the Bank’s and the Group’s CET1 ratio of 31 March 2016 and (d) the expected positive impact on the Bank’s and the Group’s CET1 ratio from the remaining actions included in the Capital Plan, and in particular the completion of the disposal of Finansbank, expected in June 2016.

(1) Means the memorandum signed on August 19, 2015 between the ESM, on behalf of the European Commission, the Hellenic Republic and the Bank of Greece.

9

Notes to the Financial Statements

Group

2.3Adoption of International Financial Reporting Standards (IFRS)

New standards, amendments and interpretations to existing standards effective from 1 January 2016

IFRS 11 (Amendments) Accounting for Acquisitions of Interests in Joint Operations (effective for annual periods beginning on or after 1 January 2016). The amendments to IFRS 11 provide guidance on how to account for the acquisition of a joint operation that constitutes a business as defined in IFRS 3 Business Combinations. Specifically, the amendments state that the relevant principles on accounting for business combinations in IFRS 3 and other standards (e.g. IAS 36 Impairment of Assets regarding impairment testing of a cash-generating unit to which goodwill on acquisition of a joint operation has been allocated) should be applied. The same requirements should be applied to the formation of a joint operation if and only if an existing business is contributed to the joint operation by one of the parties that participate in the joint operation. A joint operator is also required to disclose the relevant information required by IFRS 3 and other standards for business combinations. There was no impact from the amendment of IFRS 11 in the interim financial statements of the Group.

· IAS 1 (Amendments) Disclosure initiative (effective for annual periods beginning on or after 1 January 2016). The amendments to IAS 1 clarify that information should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to all parts of the financial statements. An entity need not provide a specific disclosure provided by an IFRS if the information resulting from that disclosure is not material. In the statement of comprehensive income, the amendments require separate disclosures for the share of other comprehensive income of associates and joint ventures accounted for using the equity method based on whether or not it will be reclassified subsequently to profit or loss. There was no impact from the amendment of IAS 1 in the interim financial statements of the Group.

· Annual Improvements to IFRSs 2010-2012 Cycle (effective for annual periods beginning on or after 1 February 2015, as endorsed by the EU). The amendments impact the following standards:

IFRS 2 Share-based Payment - Amend the definitions of “vesting condition” and “market condition” and adds definitions for “performance condition” and “service condition” which were previously included within the definition of “vesting condition”. Specifically,

·For “market condition”, the amendment indicates that is a performance condition that relates to the market price or value of the entity’s equity instruments or the equity instruments of another entity in the same group. A market condition requires the counterparty to complete a specified period of service.

·For “performance condition”, the amendment specifies that the period over which the performance target is achieved should not extend beyond the service period and that it is defined by reference to the entity’s own operations or activities of another entity in the same group.

IFRS 3 Business Combinations — Require contingent consideration that is classified as an asset or a liability to be measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial instrument within the scope of IFRS 9 or IAS 39 or a non-financial asset or liability. Changes in fair value should be recognized in profit or loss.

IFRS 8 Operating Segments — Require disclosure of the judgments made by management in applying the aggregation criteria to operating segments, including a brief description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have similar economic characteristics. Clarify that reconciliations of the total of the reportable segments’ assets to the entity’s assets are only required if the segments’ assets are regularly reported to the chief operating decision maker.

IFRS 13 Fair Value Measurement — Clarify that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not remove the ability to measure certain short-term receivables and payables on an undiscounted basis, if the effect of discounting is not material (amends basis for conclusions only).

IAS 24 Related Party Disclosures — Clarify that a management entity providing key management personnel services to a reporting entity or to the parent of the reporting entity is a related party of the reporting entity. Consequently, the reporting entity should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services.

There was no impact from the Annual Improvements to IFRSs 2010-2012 Cycle in the interim financial statements of the Group.

· Annual Improvements to IFRSs 2012-2014 Cycle (effective for annual periods beginning on or after 1 January 2016). The amendments impact the following standards:

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - The amendment clarifies that, when an asset (or disposal group) is reclassified from “held for sale” to “held for distribution to owners”, or vice versa, this does not constitute a change to a plan of sale or distribution, and does not have to be accounted for as such. This means that the asset (or disposal group) does not need to be reinstated in the financial statements as if it had never been classified as “held for sale” or “held for distribution to owners” simply because the manner of disposal has changed. The amendment also rectifies an omission in the standard by explaining that the guidance on changes in a plan of sale should be applied to an asset (or disposal group) which ceases to be held for distribution but is not reclassified as ‘held for sale’.

IFRS 7 Financial Instruments: Disclosures - There are two amendments to IFRS 7.

(1) Servicing contracts

If an entity transfers a financial asset to a third party under conditions which allow the transferor to derecognise the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. IFRS 7 provides guidance on what is meant by continuing involvement in this context. The amendment adds specific guidance to help management determine whether the terms of an arrangement to service a financial asset which has been transferred constitute continuing involvement. The amendment is prospective with an option to apply retrospectively.

(2) Interim financial statements

The amendment clarifies that the additional disclosure required by the amendments to IFRS 7, ‘Disclosure — Offsetting financial assets and financial liabilities’ is not specifically required for all interim periods, unless required by IAS 34. The amendment is retrospective.

10

Notes to the Financial Statements

Group

IAS 19 Employee Benefits - The amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, and not the country where they arise. The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should be used. The amendment is retrospective but limited to the beginning of the earliest period presented.

IAS 34 Interim Financial Reporting — The amendment clarifies the meaning of elsewhere in the interim financial report and requires cross reference.

There was no impact from the Annual Improvements to IFRSs 2012-2014 Cycle in the interim financial statements of the Group.

· IAS 16 and IAS 38 (Amendments) Clarification of Acceptable Methods of Depreciation and Amortisation (effective for annual periods beginning on or after 1 January 2016). The amendment clarifies that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate for property plant and equipment. The amendment introduce a rebuttable presumption that an amortisation method that is based on the revenue generated by an activity that includes the use of an intangible asset is inappropriate which can only be overcome in limited circumstances where the intangible asset is expressed as a measure of revenue or when it can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset are highly correlated. The Group has adopted the straight line depreciation method both for property plant and equipment and for intangible assets as it considers that this method adequately reflects the consumption of the economic benefits of the assets.

·  IAS 19 (Amendments) Defined Benefit Plans: Employee Contributions (effective for annual periods beginning on or after 1 February 2015, as endorsed by the EU). Amends the requirements in IAS 19 “Employee Benefits” for contributions from employees or third parties that are linked to service. If the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the related service is rendered, instead of attributing the contributions to the periods of service. If the amount of the contributions is dependent on the number of years of service, an entity is required to attribute those contributions to periods of service using the same attribution method required by paragraph 70 of IAS 19 for the gross benefit (i.e. either using the plan’s contribution formula or on a straight-line basis). There was no impact from the amendment of IAS 19 in the interim financial statements of the Group.

2.4Critical judgments and estimates

In preparing these interim financial statements, the significant estimates, judgments and assumptions made by Management in applying the Group’s accounting policies and the key sources of estimation uncertainty were similar to those applied to the annual consolidated financial statements as at and for the year ended 31 December 2015.

NOTE 3:Segment reporting

NBG Group manages its business through the following business segments:

Retail banking

Retail banking includes all individual customers, professionals, small-medium and small-sized companies (companies with annual turnover of up to €2.5 million except for exposures transferred to the Special Assets Unit (“SAU”). The Bank, through its extended network of branches, offers to its retail customers various types of loans, deposit and investment products, as well as a wide range of other traditional services and products.

Corporate & investment banking

Corporate & investment banking includes lending to all large and medium-sized companies and shipping finance except for exposures transferred to the SAU and investment banking activities. The Group offers its corporate customers a wide range of products and services, including financial and investment advisory services, deposit accounts, loans (denominated in both euro and foreign currency), foreign exchange and trade service activities.

Special Assets Unit (SAU)

In order to (a) manage more effectively delinquent, non-performing and denounced loans to legal entities, and (b) ensure compliance with the provisions of the Bank of Greece Executive Committee Act 42/30.5.2014 and Act 47/9.2.2015 and the Code of Conduct (referred to in Article 1(2) of Greek Law 4224/2013, the Bank established the SAU, which has the overall responsibility for the management of such loans to legal entities (end-to-end responsibility).

Global markets and asset management

Global markets and asset management includes all treasury activities, private banking, asset management (mutual funds and closed end funds), custody services, private equity and brokerage.

Insurance

The Group offers a wide range of insurance products through its subsidiary company, Ethniki Hellenic General Insurance Company S.A. (“EH”) and other subsidiaries in SEE and an associate in Turkey.

International banking operations

The Group’s international banking activities, other than its Turkish operations, include a wide range of traditional commercial banking services, such as commercial and retail credit, trade financing, foreign exchange and taking of deposits. In addition, the Group offers shipping finance, investment banking and brokerage services through certain of its foreign branches and subsidiaries.

Turkish banking operations

The Group’s banking activities in Turkey through Finansbank and its subsidiaries, include a wide range of traditional commercial banking services, such as commercial and retail credit, trade financing, foreign exchange and taking of deposits. As of 31 December 2015, Finansbank was classified as Held for Sale and Discontinued Operations (see Note 8).

11

Notes to the Financial Statements

Group

Other

Includes proprietary real estate management, hotel and warehousing business as well as unallocated income and expense of the Group (interest expense of subordinated debt, loans to personnel etc.) and intersegment eliminations.

Breakdown by business segment

3 month period ended 31 March 2016	Retail  Banking		Corporate & Investment Banking		SAU		Global  markets  & Asset  Management		Insurance		International Banking  Operations		TurkishBankingOperations	Other		Group
Net interest income	125		145		33		46		11		84		—	35		479
Net fee and commission income	22		20		1		(25	)	1		23		—	1		43
Other	2		(10	)	(3	)	17		15		14		—	(26	)	9
Total income	149		155		31		38		27		121		—	10		531
Direct costs	(105	)	(10	)	(2	)	(11	)	(19	)	(63	)	—	(1	)	(211	)
Allocated costs and provisions(1)	(141	)	(39	)	(35	)	(8	)	(3	)	(28	)	—	(36	)	(290	)
Share of profit of equity method investments	—		—		—		2		—		—		—	1		3
Profit / (loss) before tax	(97	)	106		(6	)	21		5		30		—	(26	)	33
Tax benefit / (expense)																(7	)
Profit for the period from continuing operations																26
Non-controlling interests																10
Profit/(loss) for the period from discontinued operations													71			71
Profit attributable to NBG equity shareholders																87

(1) Includes depreciation and amortisation on investment property, property & equipment, software & other intangible assets.

3 month period ended 31 March 2015	Retail  Banking		Corporate & Investment Banking		SAU		Global markets & Asset Management		Insurance		International Banking Operations		Turkish Banking Operations	Other		Group
Net interest income	139		148		37		44		12		83		—	34		497
Net fee and commission income	21		22		2		(38	)	1		23		—	(2	)	29
Other	3		(11	)	(3	)	(181	)	33		7		—	72		(80	)
Total income	163		159		36		(175	)	46		113			104		446
Direct costs	(111	)	(9	)	(2	)	(12	)	(21	)	(62	)	—	(4	)	(221	)
Allocated costs and provisions(1)	(213	)	(64	)	(131	)	(6	)	(5	)	(32	)	—	(33	)	(484	)
Share of profit of equity method investments	—		—		—		—		—		—		—	1		1
Profit / (loss) before tax	(161	)	86		(97	)	(193	)	20		19			68		(258	)
Tax benefit / (expense)																(5	)
Loss for the period from continuing operations																(263	)
Profit for the period from discontinued operations													114			114
Non-controlling interests																10
Loss attributable to NBG equity shareholders																(159	)

(1) Includes depreciation and amortisation on investment property, property & equipment, software & other intangible assets.

12

Notes to the Financial Statements

Group

Segment assets as at 31 March 2016
Segment assets	19,308	11,317	1,767	13,386	2,733	9,459	(762	)	20,923	78,131
Deferred tax assets and Current income tax advance										5,671
Non-current assets held for sale										27,941
Total assets										111,743
Segment liabilities as at 31 March 2016
Segment liabilities	34,420	111	74	24,864	2,254	6,910	(302	)	9,601	77,932
Current income and deferred tax liabilities										18
Liabilities associated with non-current assets held for sale										23,931
Total liabilities										101,881
Segment assets as at 31 December 2015
Segment assets	19,972	11,684	1,824	13,000	2,756	9,557	—		18,997	77,790
Deferred tax assets and Current income tax advance										5,675
Non-current assets held for sale										27,767
Total assets										111,232
Segment liabilities as at 31 December 2015
Segment liabilities	35,240	120	79	24,925	2,259	6,963	—		8,160	77,746
Current income and deferred tax liabilities										19
Liabilities associated with non-current assets held for sale										23,643
Total liabilities										101,408

NOTE 4:Credit provisions and other impairment charges

	Group
Continuing Operations	31.03.2016	31.03.2015
a. Impairment charge for credit losses
Loans and advances to customers	158	353
	158	353
b. Impairment charge for securities
AFS and loans-and-receivables debt securities	—	1
Equity securities	2	4
	2	5
c. Other provisions and impairment charges
Impairment of investment property, property and equipment, software & other intangible assets and other assets	2	1
Impairment of goodwill / Investment in subsidiaries and equity method investments	1	—
Legal and other provisions	29	30
	32	31
Total	192	389

13

Notes to the Financial Statements

Group

NOTE 5:Tax benefit /(expense)

	Group
Continuing Operations	31.03.2016		31.03.2015
Current tax	(6	)	(6	)
Deferred tax	(1	)	1
Tax benefit / (expense)	(7	)	(5	)

The nominal corporation tax rate for the Bank for 2016 and 2015 is 29%.

Following the recent tax law 4387/2016, the withholding tax on dividends distributed from 1 January 2017 onwards is increased from 10% to 15%.

The unaudited tax years of the Group’s equity method investments and subsidiaries are presented in Note 16.

NOTE 6:Earnings / (losses) per share

	Group
	31.03.2016	31.03.2015
Profit/(loss) for the period attributable to NBG equity shareholders from continuing operations	16	(273	)
Earnings/(losses) for the period attributable to NBG ordinary shareholders from continuing operations	16	(273	)
Earnings/(losses) for the period from discontinued operations	71	114
Earnings/(losses) for the period attributable to NBG ordinary shareholders from continuing and discontinued operations	87	(159	)
Weighted average number of ordinary shares outstanding for basic EPS	9,146,480,589	235,497,599
Potential dilutive ordinary shares on contingently convertible bonds (CoCos)	7,846,240,000	—
Weighted average number of ordinary shares outstanding for diluted EPS	16,992,720,589	235,497,599
Earnings/(losses) per share - Basic from continuing operations	0.00	(1.16	)
Earnings/(losses) per share - Diluted from continuing operations	0.00	(1.16	)
Earnings/(losses) per share - Basic from continuing and discontinued operations	0.01	(0.68	)
Earnings/(losses) per share - Diluted from continuing and discontinued operations	0.01	(0.68	)

On 17 November 2015, the Extraordinary General Meeting of the Bank’s shareholders approved the reverse split of the ordinary shares at a ratio of 15 existing shares of 0.30 Euro per share to be exchanged for 1 new share of 4.50 Euro per share. Therefore, the weighted average number of shares for the comparative period has been adjusted accordingly.  Following the last share capital increase in 2015, 8.911.608.218 new shares were issued see Note 38 of the 2015 Annual Financial Report.

On 9 December 2015, within the context of the 2015 Recapitalisation, the Bank issued Non-Cumulative Perpetual Contingently Convertible securities (“CoCos”). The Hellenic Financial Stability Fund (“HFSF”) subscribed these CoCos for the amount of €2,029 million in exchange for part of the debt securities issued by the ESM. The effect of CoCos in the EPS calculation for the comparative period was antidilutive hence the comparative weighted average number of ordinary shares outstanding for diluted EPS has not been adjusted.

NOTE 7:Loans and advances to customers

	Group
	31.03.2016		31.12.2015
Mortgages	19,067		19,255
Consumer loans	5,580		5,598
Credit cards	1,364		1,409
Small business lending	4,152		4,195
Retail lending	30,163		30,457
Corporate and public sector lending	27,761		27,761
Total before allowance for impairment on loans and advances to customers	57,924		58,218
Less: Allowance for impairment on loans and advances to customers	(12,909	)	(12,843	)
Total	45,015		45,375

14

Notes to the Financial Statements

Group

As at 31 March 2016, corporate and public sector lending for the Group includes a loan to the Greek state of €6,412 million (31 December 2015: €6,249 million). The whole agreement with the Greek state relating to this loan also includes an embedded derivative that has been bifurcated and accounted for as a separate derivative.

NOTE 8:Non-current assets held for sale and liabilities associated with non-current assets held for sale

Non-current assets held for sale at 31 March 2016 comprise, Finansbank A.S., the Private Equity Funds and Astir Palace Vouliagmenis S.A and Astir Marina Vouliagmenis S.A.

Finansbank

On 3 November 2015, the Bank’s Board of Directors approved the plan to proceed with the disposal of its entire stake in Finansbank. On 21 December 2015, the Bank’s Board of Directors approved the sale to Qatar National Bank (“QNB”) of NBG Group’s 99.81% stake in Finansbank A.S. together with NBG’s 29.87% direct stake in Finans Leasing. Furthermore, on 18 January 2016 the Extraordinary General Meeting of the Bank approved the transaction. The agreed consideration for the transaction amounts to €2,750 million. In addition, QNB will repay upon closing the USD910 million of subordinated debt that NBG has extended to Finansbank. The disposal is consistent with the Group’s capital action plan to address the capital shortfalls identified from the 2015 Comprehensive Assessment carried out by the ECB and satisfies the relevant commitment in the Restructuring Plan approved by DGComp on 4 December 2015. Closing of the Finansbank Transaction is subject to approval from: (i) the Turkish Banking Regulation and Supervision Agency (already received); (ii) the Qatar Central Bank (already received); (iii) the Turkish Competition Board (already received approval; reasoned decision pending to be received); (iv) the Turkish Capital Markets Board (already received) and (v) the Turkish Treasury (already received). The closing of the transaction is expected by 30 June 2016. As a result, the investment in Finansbank qualifies to be classified as a disposal group held for sale on 3 November 2015. Furthermore, Finansbank meets the definition of a discontinued operation because it is a major line of business as defined in IFRS.

Following the decision to dispose its entire stake in Finansbank, the Group, based on the agreed consideration, assessed for impairment the carrying amount of the CGU and concluded to recognize an impairment loss of €1,861 million during the period ended 31 December 2015 of which €1,082 million related to the goodwill recognized in the Group’s consolidated financial statements.

NBGI Private Equity Funds

On 21 December 2015, the Bank’s Board of Directors approved the plan to proceed with the disposal of its entire stake in eleven Limited Partnerships (“the Funds”) located in UK and held directly or indirectly by NBG and managed by NBGI PE Limited. On 2 February 2016 the Bank entered into a definitive agreement to sell the 100% of its interests in Funds to funds managed by Deutsche Bank Private Equity and Goldman Sachs Asset Management. The agreed consideration for the transaction amounts to €288 million. The disposal is consistent with the Group’s capital action plan to address the capital shortfalls identified from the 2015 Comprehensive Assessment carried out by the ECB and satisfies the relevant commitment in the Restructuring Plan approved by DGComp on 4 December 2015. Closing of the transaction is expected within 2016, subject to the approval from the Financial Contact Authority, and antitrust and competition authorities. As a result, the investment in Funds qualified to be classified as a disposal group held for sale on 21 December 2015.

Following the decision to dispose its entire stake to the Funds, the Group, based on the agreed consideration, assessed for impairment the carrying amount of the goodwill recognized in the Group’s consolidated financial statements and concluded to recognize an impairment loss of €106 million during the period ended 31 December 2015.

Astir Palace Vouliagmenis S.A.

On February 10, 2014 JERMYN STREET REAL ESTATE FUND IV L.P. (“JERMYN”) was nominated as Preferred Investor pursuant to the international open competitive process for the acquisition of a majority of the share capital of Astir Palace Vouliagmenis S.A (the “Process”). Further to the transaction approval by the Council of Audit on 5 June 2014 the Sale and Purchase Agreement was executed on 17 September, 2014 between NBG, the Hellenic Republic Asset Development Fund S.A. (‘HRADF’) in their capacity as sellers, Apollo Investment Hold Co in its capacity as the buyer, and JERMYN in its capacity as Guarantor. Apollo Investment Hold Co is an SPV, 100.00% owned by JERMYN. The transaction is intended to close following the fulfillment of relevant conditions precedent. These include, among others, the issuance and publication of the applicable Special Public Real Estate Area Development Plan (the “Plan”) in the Government Gazette. In March 2015, the Council of State reached a negative decision regarding the submitted Plan. Following these developments NBG, HRADF and the Preferred Investor initiated consultations within the context of existing competitive process, applying the relevant provisions of the SPA. The relevant Consultation Period (as per the current SPA terms) began on 11 May 2015 and was extended to 31 December 2015 in agreement with the Preferred Investor. The consultations between the Parties resulted in an agreement which was included in an Addendum to the SPA dated 31 December 2015 by means of which the original plan is substituted by a new draft Special Public Real Estate Area Development Plan. Given that the delay is caused by events and circumstances beyond NBG’s control and that NBG remains committed to its plan to sell the subsidiary, the assets and liabilities of Astir Palace Vouliagmenis S.A. and Astir Marina Vouliagmenis S.A. (an 100.00% subsidiary of Astir Palace Vouliagmenis S.A.) continue to be presented as non — current assets held for sale in accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, as the requirements and conditions specified by the Standard are met.

On 4 January 2016 the disposal of the Group’s joint venture company UBB-AIG Insurance Company AD for a consideration of €2 million was completed.

15

Notes to the Financial Statements

Group

Analysis of Finansbank AS, Astir Palace Vouliagmenis S.A., Astir Marina Vouliagmenis S.A. and NBGI Private Equity Funds assets and liabilities

	Group
	31.03.2016	31.12.2015
Cash and balances with central banks	3,258	3,147
Due from banks	274	206
Financial assets at fair value through profit or loss	44	26
Derivative financial instruments	1,413	1,723
Loans and advances to customers	18,900	18,719
Investment securities	3,032	2,947
Investment property	164	162
Equity method investments	46	46
Goodwill, software and other intangible assets	26	37
Property and equipment	291	296
Deferred tax assets	13	16
Current income tax advance	1	2
Other assets	479	440
Total assets	27,941	27,767
LIABILITIES
Due to banks	2,571	2,933
Derivative financial instruments	746	768
Due to customers	15,175	14,731
Debt securities in issue	1,936	1,831
Other borrowed funds	1,963	1,861
Retirement benefit obligations	45	44
Current income tax liabilities	—	18
Other liabilities	1,495	1,457
Total liabilities	23,931	23,643

The results of discontinued operations (Finansbank S.A.) are set below.

Profit/(loss) for the period from discontinued operations

	3 month period ended
€ million	31.03.2016		31.03.2015
Interest and similar income	665		653
Interest expense and similar charges	(396	)	(371	)
Net interest income	269		282
Fee and commission income	91		106
Fee and commission expense	(6	)	(4	)
Net fee and commission income	85		102
Net trading income / (loss) and results from investments securities	4		6
Net other income/(expense)	(3	)	43
Total income	355		433
Personnel expenses	(94	)	(94	)
General, administrative and other operating expenses	(94	)	(95	)
Depreciation and amortisation on investment property. Property & equipment and software & other intangible assets	(19	)	(21	)
Amortisation and write-offs of intangible assets recognised on business combinations
Finance charge on put options of non-controlling interests
Credit provisions and other impairment charges	(64	)	(94	)
Share of profit / (loss) of equity method investments	(1	)
Profit/(loss) before tax	83		129
Tax benefit/ (expense)	(12	)	(15	)
Profit/(loss) for the period from discontinued operations	71		114

16

Notes to the Financial Statements

Group

€ million	31.03.2016		31.03.2015
Cash Flows from discontinued operations
Net cash inflows/(outflows) from operating activities	180		(292	)
Net cash inflows/(outflows) from investing activities	(172	)	(182	)
Net cash inflows/(outflows) from financing activities	152		421
Net Cash inflows /(outflows)	160		(53	)

NOTE 9:Due to customers

	Group
	31.03.2016	31.12.2015
Deposits:
Individuals	33,238	33,436
Corporate	5,589	6,139
Government and agencies	2,922	3,026
Other	298	358
Total	42,047	42,959

	Group
	31.03.2016	31.12.2015
Deposits:
Savings accounts	18,654	18,429
Current & Sight accounts	7,749	8,457
Time deposits	14,748	15,130
Other deposits	552	539
	41,703	42,555
Securities sold to customers under agreements to repurchase	46	46
Other	298	358
	344	404
Total	42,047	42,959

Included in due to customers are deposits, which contain one or more embedded derivatives. The Group has designated such deposits as financial liabilities at fair value through profit or loss. As at 31 March 2016, these deposits amount to €25 million (2015: €2 million).

NOTE 10:Contingent liabilities, pledged, transfers of financial assets and commitments

a. Legal proceedings

The Group is a defendant in certain claims and legal actions arising in the ordinary course of business. For the cases for which a provision has not been recognized, Management is unable to estimate the possible losses because the proceedings may last for many years, many of the proceedings are in early stages, there is uncertainty of the likelihood of the final result, there is uncertainty as to the outcome of the pending appeals and there are significant issues to be resolved. However, in the opinion of Management, after consultation with its legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated or separate Statement of Financial Position, Income Statement and Cash Flow Statement.  However, at 31 March 2016 the Group has provided for cases under litigation the amounts of €69 million (31 December 2015: €62 million).

b. Pending tax audits

Tax authorities have not yet audited all subsidiaries for certain financial years and accordingly their tax obligations for those years may not be considered final. Additional taxes and penalties may be imposed as a result of such tax audits; although the amount cannot be determined, it is not expected to have a material effect on the consolidated or separate Statement of Financial Position of the Group. The Bank has been audited by the tax authorities up to and including the year 2014 while 2015 is currently being audited. Tax audit for the years 2009 and 2010 was finalized by the Greek Tax Authorities on 4 February 2015. According to the tax assessment notice received on 11 March 2015, an additional tax of €36 million was levied to the Bank. The Bank has appealed the decision. The tax audit certificates for the years 2011, 2012, 2013 and 2014 were unqualified and issued by the independent auditor, Deloitte Hadjipavlou Sofianos & Cambanis S.A., on 27 July 2012, 27 September 2013, 10 July 2014 and 30 October 2015 respectively in accordance with article 82 of law 2238/1994 and article 65A of law 4174/2013. Based on Ministerial Decision 1006/05.01.2016 there is no exception from tax audit by the tax authorities to those entities that have been tax audited by the independent auditor and its tax audit certificate was unqualified. Therefore, the tax authorities may re-audit the tax books of the Bank for previous years. For the subsidiaries and associates regarding unaudited tax years refer to Note 16.

c. Credit commitments

In the normal course of business, the Group enters into a number of contractual commitments on behalf of its customers and is a

17

Notes to the Financial Statements

Group

party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These contractual commitments consist of commitments to extend credit, commercial letters of credit and standby letters of credit and guarantees. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the conditions established in the contract. Commercial letters of credit ensure payment by the Bank to a third party for a customer’s foreign or domestic trade transactions, generally to finance a commercial contract for the shipment of goods. Standby letters of credit and financial guarantees are conditional commitments issued by the Group to guarantee the performance of a customer to a third party. All of these arrangements are related to the normal lending activities of the Group. The Group’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and commercial and standby letters of credit is represented by the contractual nominal amount of those instruments. The Group uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

	Group
	31.03.2016	31.12.2015
Commitments to extend credit*	5	6
Standby letters of credit and financial guarantees written	2,996	3,257
Commercial letters of credit	116	224
Total	3,117	3,487

* Commitments to extend credit at 31 March 2016 include amounts, which cannot be cancelled without certain conditions being met at any time and without notice, or for which automatic cancellation due to credit deterioration of the borrower is not allowed. Such commitments are used in the Risk Weighted Assets calculation for capital adequacy purposes under regulatory rules currently in force. The total commitments to extend credit at 31 March 2016 are €5,663 million (2015: €5,738 million).

d. Assets pledged

	Group
	31.03.2016	31.12.2015
Assets pledged as collateral	32,343	30,918

As at 31 March 2016, the Group has pledged mainly for funding purposes with the Eurosystem, other central banks and financial institutions, the following instruments:

·trading and investment debt securities of €14,410 million; and

·loans and advances to customers amounting to €12,340 million.

·covered bonds of a nominal value of €4,000 million backed with mortgage loans as total value of €5,593 million.

Additionally to the amounts in the table above, the Bank has pledged for funding purposes with the Eurosystem and financial institutions:

·floating rate notes of €7,100 million, issued under the government-guaranteed borrowing facility provided by Law 3723/2008 (pillar II) and held by the Bank. As at 17.5.2016 the participation in the Government Support plan (Pillar II) has decreased to €3,000 million.

In addition to the pledged items presented in the table above, as at 31 March 2016, the Group has pledged an amount of €322 million included in due from banks with respect to a guarantee for the non-payment risk of the Hellenic Republic, as well as Hellenic Republic Treasury bills of €318 million for trade finance purposes.

e. Operating lease commitments

	Group
	31.03.2016	31.12.2015
No later than 1 year	84	88
Later than 1 year and no later than 5 years	224	241
Later than 5 years	82	85
Total	390	414

18

Notes to the Financial Statements

Group

NOTE 11:Share capital, share premium and treasury shares

Share Capital — Ordinary Shares

The total number of ordinary shares as at 31 March 2016 and 31 December 2015 was 9,147,151,527, with a nominal value of 0.30 Euro.

Share Capital — Total

Following the above, the total paid-up share capital and share premium of the Group, as at 31 March 2016 are as follows:

	Group
	# of shares	Par value	Share capital	Share premium	Total
Ordinary shares	9,147,151,527	0.30	2,744	13,866	16,610
Total share capital			2,744	13,866	16,610

Treasury shares

Following the restrictions of Law 3723/2008 regarding the Hellenic Republic’s Bank Support Plan, the Bank possesses no treasury shares.  At a Group level, the treasury shares transactions are conducted by NBG Securities S.A.  As at 31 March 2016, the treasury shares transactions are summarized as follows:

	Group
	No of shares		€ million
At 1 January 2015	1,076		—
Purchases	67,825,104		67
Sales	(65,824,717	)	(66	)
At 31 December 2015	2,001,463		1
Purchases	36,950,775		8
Sales	(38,402,736	)	(8	)
At 31 March 2016	549,502		1

NOTE 12:Tax effects relating to other comprehensive income / (expense) for the period

	3 month period ended						3 month period ended
	31.03.2016						31.03.2015
Group	Gross		Tax		Net		Gross		Tax		Net
Items that may be reclassified subsequently to profit or loss:
Unrealised gains / (losses) for the period	29		(4	)	25		(45	)	(2	)	(47	)
Less: Reclassification adjustments included in the income statement	(1	)	1		—		4		1		5
Available-for-sale securities	28		(3	)	25		(41	)	(1	)	(42	)
Currency translation differences	(44	)	—		(44	)	55		—		55
Cash flow hedge	(50	)	10		(40	)	14		(3	)	11
Total of items that may be reclassified subsequently to profit or loss	(66	)	7		(59	)	28		(4	)	24
Items that not be reclassified subsequently to profit or loss:
Other comprehensive income / (expense) for the period	(66	)	7		(59	)	28		(4	)	24

19

Notes to the Financial Statements

Group

NOTE 13:Related party transactions

The nature of the significant transactions entered into by the Group with related parties during the 3-month period ended 31 March 2016 and 31 March 2015 and the significant balances outstanding at 31 March 2016 and 31 December 2015 are presented below.

a. Transactions with members of the Board of Directors and management

The Group entered into transactions with the members of the Board of Directors, the General Managers and the members of the Executive Committees of the Bank, the key management of other Group companies, as well as with the close members of family and entities controlled or jointly controlled by those persons.

All loans granted to related parties (i) were made in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and (iii) did not involve more than the normal risk of collectability or present other unfavourable features.

The list of the members of the Board of Directors of the Bank is presented under Note 1.

As at 31 March 2016, loans, deposits/liabilities and letters of guarantee, at Group level, amounted to €96 million, €18 million and €5 million respectively (31 December 2015: €100 million, €25 million and €10 million respectively).

Total compensation to related parties amounted to €12 million, of which €2 million from continuing operations (31 March 2015: €8 million of which €2 million from continuing operations) for the Group, mainly relating to short-term benefits.

b. Transactions with subsidiaries, associates and joint ventures

At a Group level, only transactions and balances with associates and joint ventures are included, as transactions and balances with subsidiaries are eliminated on consolidation.

	Group
	31.03.2016	31.12.2015
Assets	17	16
Liabilities	44	46
Letters of guarantee, contingent liabilities and other off balance sheet accounts	2	2

	3 month period ended
	31.03.2016	31.03.2015
Interest, commission and other income	10	10
Interest, commission and other expense	2	2

c. Transactions with other related parties

The total receivables of the Group from the employee benefits related funds as at 31 March 2016 amounted to €641 million (31 December 2015: €781 million).

The total payables of the Group to the employee benefits related funds as at 31 March 2016 amounted to €145 million (31 December 2015: €149 million.

d. Hellenic Financial Stability Fund

Taking into consideration the HFSF Law, the RFA between the Bank and the HFSF that was signed in December 2015, the fact that HFSF holds 40.4% of the Bank’s ordinary shares, of which 38.92% with full voting rights and that HFSF has representation in the Bank’s Board of Directors and other Board Committees of the Bank, HFSF is considered a related party of the Group. Other than the ordinary shares and CoCos issued by the Bank and held by HFSF, no transactions or balances exist with HFSF.

NOTE 14:Capital adequacy

Quantitative measures established by regulation to ensure capital adequacy require the Group to maintain minimum amounts and ratios, determined on a risk-weighted basis, of capital (as defined) to assets, certain off-balance sheet items, and the notional credit equivalent arising from the total capital requirements against market risk. In June 2013, the European Parliament and the Council of Europe issued a new Directive 2013/36/EU and Regulation (EU) No 575/2013, (known as CRD IV), which incorporate the key amendments that have been proposed by the Basel Committee for Banking Supervision (known as Basel III). Directive 2013/36/EU has been transposed into Greek Law by virtue of Greek Law 4261/5.5.2014 and Regulation (EU) No 575/2013 has been directly applicable to all EU Member States since 1 January 2014, but some changes under CRD IV will be implemented gradually, mainly between 2014 and 2019. CRD IV revised the definition of regulatory capital and its components at each level.

20

Notes to the Financial Statements

Group

The capital adequacy ratios for the Group, according to the CRD IV transitional provisions, are presented in the table below:

	Group
	31.03.2016		31.12.2015 *
Common Equity Tier 1	14.4	%	14.5	%
Tier I	14.4	%	14.5	%
Total	14.4	%	14.6	%

* CET1 and Tier1 ratios differ by 0.1% from the corresponding ratios published in the 2015 Annual Financial Report due to the finalisation of the relevant calculations subsequent to its issuance.

DTC Law

Article 27A  of Law 4172/2013, “DTC Law”), as currently in force, allows, under certain conditions, and from 2017 onwards Credit Institutions to convert Deferred Tax Assets (“DTAs”) arising from Private Sector Initiative (“PSI”) losses and accumulated provisions for credit losses recognised on 30 June 2015 to a receivable (Tax Credit) from the Greek State. The main condition is the existence of an accounting loss of a respective year, starting from accounting year 2016 and onwards. The Tax Credit is offsettable against income taxes payable. The non-offset part of the Tax Credit is immediately recognized as a receivable from the Greek State. The Bank will issue conversion rights for an amount of 100% of the Tax Credit in favour of the Greek State and create a specific reserve for an equal amount. Common shareholders have pre-emption rights on these rights. The reserve will be capitalised with the issuance of common shares in favour of the Greek State. This new legislation allows Credit Institutions to treat such DTAs as not “relying on future profitability” according to CRD IV, and as a result such DTAs are not deducted from CET1, hence improving their capital position.

On 7 November 2014 the Bank convened an extraordinary General Shareholders Meeting which resolved upon the inclusion of the Bank in the DTC Law. In order for the Bank to exit the provisions of the DTC Law it requires regulatory approval and a General Shareholders meeting resolution.

As of 31 March 2016, the amount of DTA that was eligible for conversion to a receivable from the Greek State subject to the DTC Law was €4.9 billion.

Implementation of the Bank Recovery and Resolution Directive

Law 4335/2015, which was voted by the Greek Parliament on 23 July 2015, implemented in Greek law Directive 2014/59/EU of 15 May 2014, which provides for the establishment of an EU-wide framework for the recovery and resolution of credit institutions and investment firms (the “Bank Recovery and Resolution Directive” or “BRRD”). The BRRD is designed to provide authorities with a credible set of tools to intervene sufficiently early and quickly to avoid a significant adverse effect on the financial system, to prevent threats to market infrastructures, to protect depositors and investors and to minimize reliance on public financial support.

The BRRD contains a broad range of resolution tools and powers which may be used alone or in combination where the relevant resolution authority considers that certain required conditions are met, including, inter alia, that an institution is failing or likely to fail and no alternative private sector measure, or supervisory action, would prevent the failure of the institution within a reasonable timeframe. The resolution tools include the power to sell or transfer assets (or ownership thereof) to another institution and a general bail-in tool, which provides for the write-down or conversion of any obligations of the institution that meet relevant conditions. In cases of an exceptional systemic crisis, extraordinary public financial support may be provided in accordance with the EU state aid framework, as a last resort and subject to additional conditions.

In addition to the general bail-in tool, the BRRD provides for resolution authorities to have the power to permanently write-down or convert into equity capital instruments such as subordinated notes at the point of non-viability and before any other resolution action is taken (non-viability loss absorption). These measures could be applied to certain of the Group’s debt securities. Furthermore, in circumstances where capital instruments are converted into equity securities by application of the mandatory write-down tool, those equity securities may be subjected to the bail-in powers in resolution, resulting in their cancellation, significant dilution or transfer away from the investors therein.

HFSF Law

Pursuant to the provisions of Law 3864/2010 (the “HFSF Law”), as currently in force, in the event that a credit institution is faced with a capital shortfall that has been identified as such by the competent authority, the credit institution may request capital support from the HFSF up to the amount of the capital shortfall, subject to certain conditions. If the restructuring plan prepared in this context fails to address the total capital shortfall of the credit institution as identified by the competent authority and in order to avoid serious disturbances in the economy with adverse effects upon the public, and in order to ensure that the use of public funds is minimal, a Cabinet Act will be issued following a recommendation by the Bank of Greece for the application of mandatory measures (the “Mandatory Measures”) aimed at allocating the residual amount of the capital shortfall of the credit institution to the holders of its capital instruments and other liabilities, as may be necessary. The HFSF provides capital support exclusively for the purpose of covering the credit institution’s capital shortfall, as it has been determined by the competent authority and up to the residual amount, subject to the prior implementation of the measures of the capital raising plan of the credit institution, any participation of investors of private sector and the approval of the restructuring plan by the European Commission. Capital support is provided through the HFSF’s participation in a share capital increase of the credit institution by issuance of ordinary shares with voting rights or contingent convertible securities (the “CoCos”) or other convertible financial instruments that shall be subscribed for by the HFSF.

21

Notes to the Financial Statements

Group

NOTE 15:Fair value of financial assets and liabilities

a. Financial instruments not measured at fair value

The table below summarises the carrying amounts and the fair values of those financial assets and liabilities that are not presented on the Group’s statement of financial position at fair value and the fair value is materially different from the carrying amount.

Financial instruments not measured at fair value - Group

	Carrying amounts	Fair values
	31.3.2016	31.3.2016
Financial Assets
Loans and advances to customers	45,015	41,701
Held-to-maturity investment securities	284	366
Loans-and-receivables investment securities	13,248	12,798
Financial Liabilities
Due to customers	42,022	41,999
Debt securities in issue	279	279
Other borrowed funds	150	152

	Carrying amounts	Fair values
	31.12.2015	31.12.2015
Financial Assets
Loans and advances to customers	45,375	42,893
Held-to-maturity investment securities	233	318
Loans-and-receivables investment securities	13,250	12,901
Financial Liabilities
Due to customers	42,957	42,936
Debt securities in issue	280	280
Other borrowed funds	146	148

The following methods and assumptions were used to estimate the fair values of the above financial instruments 31 March 2016 and 31 December 2015:

The carrying amount of cash and balances with central banks, due from and due to banks as well as accrued interest, approximates their fair value.

·Loans and advances to customers: The fair value of loans and advances to customers is estimated using discounted cash flow models. The discount rates are based on current market interest rates offered for instruments with similar terms to borrowers of similar credit quality.

·Held-to-maturity and loans-and-receivables investment securities: The fair value of held-to-maturity and loans and receivables investment securities is estimated using market prices, or using discounted cash flow models based on current market interest rates offered for instruments with similar credit quality.

·Due to customers: The fair value for demand deposits and deposits with no defined maturity is determined to be the amount payable on demand at the reporting date. The fair value for fixed-maturity deposits is estimated using discounted cash flow models based on rates currently offered for the relevant product types with similar remaining maturities.

·Debt securities in issue: Fair value is estimated using market prices, or if such are not available, using a discounted cash flow analysis, based on current market rates of similar maturity and credit quality debt securities.

·Other borrowed funds: Fair value of other borrowed funds is estimated using market prices, or if such are not available, either based on the prices with which the issuers completed tender offers with respect to these or similar instruments, or discounted cash flow analysis based on the Group’s current incremental borrowing rates for similar types of borrowings arrangements.

b. Financial instruments measured at fair value

The tables below present the fair values of those financial assets and liabilities presented on the Group’s statement of financial position at fair value by fair value measurement level at 31 March 2016 and 31 December 2015:

22

Notes to the Financial Statements

Group

Financial instruments measured at fair value - Group

	Fair value measurement using			Total asset/ liability at
As at 31 March 2016	Level 1	Level 2	Level 3	Fair value
Assets
Financial assets at fair value through profit or loss	174	2,443	13	2,630
Derivative financial instruments	2	4,847	12	4,861
Available-for-sale investment securities	946	1,738	47	2,723
Insurance related assets and receivables	175	110	—	285
Total	1,297	9,138	72	10,507
Liabilities
Due to customers designated as at fair value through profit or loss	—	25	—	25
Derivative financial instruments	12	5,663	18	5,693
Debt securities in issue designated as at fair value through profit or loss	—	849	—	849
Other liabilities	1	—	—	1
Total	13	6,537	18	6,568

	Fair value measurement using			Total asset/ liability at
As at 31 December 2015	Level 1	Level 2	Level 3	Fair value
Assets
Financial assets at fair value through profit or loss	163	2,310	13	2,486
Derivative financial instruments	1	3,883	11	3,895
Available-for-sale investment securities	946	1,608	48	2,602
Insurance related assets and receivables	205	102	—	307
Total	1,315	7,903	72	9,290
Liabilities
Due to customers designated as at fair value through profit or loss	—	2	—	2
Derivative financial instruments	1	4,633	4	4,638
Debt securities in issue designated as at fair value through profit or loss	—	826	—	826
Total	1	5,461	4	5,466

The tables below present the fair values for the assets and liabilities classified as held-for-sale in the Group’s Statement of Financial Position and are measured at fair value for 31 March 2016 and 31 December 2015:

Held for Sale Operations - Financial instruments measured at fair value

	Fair value measurement using			Total asset/ liability at
As at 31 March 2016	Level 1	Level 2	Level 3	Fair value
Assets
Financial assets at fair value through profit or loss	44	—	—	44
Derivative financial instruments	—	1,413	—	1,413
Loans and advances to customers designated as at fair value through profit or loss	—	—	18	18
Available-for-sale investment securities	1,695	21	75	1,791
Total	1,739	1,434	93	3,266
Liabilities
Derivative financial instruments	—	746	—	746
Total	—	746	—	746

23

Notes to the Financial Statements

Group

Held for Sale Operations - Financial instruments measured at fair value

	Fair value measurement using			Total asset/ liability at Fair
As at 31 December 2015	Level 1	Level 2	Level 3	value
Assets
Financial assets at fair value through profit or loss	25	1	—	26
Derivative financial instruments	—	1,723	—	1,723
Loans and advances to customers designated as at fair value through profit or loss	—	—	18	18
Available-for-sale investment securities	1,625	21	75	1,721
Total	1,650	1,745	93	3,488
Liabilities
Derivative financial instruments	—	768	—	768
Total	—	768	—	768

Transfers from Level 1 to Level 2

No transfers of financial instruments from Level 1 to level 2 occurred in 2016 and 2015.

Level 3 financial instruments

Level 3 financial instruments at 31 March 2016 and 31 December 2015 include:

a)Derivative products, which are valued using valuation techniques with significant unobservable inputs, including certain correlation products, such as correlation between various interest indices or correlation between various currencies. They also include derivatives for which the CVA is based on significant unobservable inputs and the amount of the CVA is significant relative to the total fair value of the derivative.

b)Securities at fair value through profit or loss and available-for-sale securities, which are price-based, and the price is obtained from the issuers of the securities.

c)Available-for-sale non-marketable equity securities, which are valued by independent evaluators based on inputs such as earnings forecasts, comparable multiples of Economic Value to EBITDA and other parameters which are not market observable. Additionally it includes, Private equity investments, included in assets-held-for sale, the prices of which are determined by the price of the most recent investment. Available-for-sale investments also include debt securities whose fair value is determined by the value of the underlying collateral. Furthermore, within the investment securities — available for sale portfolio are included equity securities, the value of which has been based on the agreed buyout consideration and the proportion of the Group’s share, is based on the share of proceeds the acquired company had from the respective NBG Group entities.

d)Loans, included in assets-held-for sale, which are carried at fair value through profit or loss and which are valued using discounted cash flow valuation techniques incorporating unobservable credit spreads.

The table below presents a reconciliation of all Level 3 fair value measurements for the period ended 31 March 2016 and 31 December 2015, including realized and unrealized gains/(losses) included in the “income statement” and “statement of other comprehensive income”.

Transfers into or out of Level 3

The Group conducts a review of the fair value hierarchy classifications on a quarterly basis. For the periods ended 31 March 2016 and 31 December 2015, transfers from Level 2 into Level 3 include derivative instruments for which the bilateral “CVA” adjustment is significant to the base fair value of the respective instruments.

Reconciliation of fair value measurements in Level 3 — Group

	2016
	Financial assets at fair value through profit or loss	Net Derivative financial instruments		Available- for-sale investment securities
Balance at 1 January	13	7		48
Gain / (losses) included in Income statement	—	(12	)	—
Transfer into/ (out of) level 3	—	(1	)	—
Balance at 31 March	13	(6	)	48

24

Notes to the Financial Statements

Group

	2015
	Financial assets at fair value through profit or loss		Net Derivative financial instruments		Available- for-sale investment securities		Insurance related assets and receivables		Loans and advances to customers designated as at Fair Value through profit or loss
Balance at 1 January	15		27		50		11		42
Gain / (losses) included in Income statement	(1	)	(12	)	(3	)	—		—
Gain / (losses) included in OCI	—		—		(1	)	—		—
Purchases	—		1		—		—		—
Settlements	(1	)	2		—		(11	)
Transfer to non current assets held for sale					(29	)	—		(42	)
Transfer into/ (out of) level 3	—		(11	)	31		—		—
Balance at 31 December	13		7		48		—		—

Gains and losses included in the income statement have been reported in Net trading income / (loss) and results from investment securities except for bonds’ amortisation of premium / discount which amounts to Nil for both, the period ended 31 March 2016  and the year ended 31 December 2015.

Changes in unrealised gains/ (losses) included in the income statement of financial instruments measured at fair value using significant unobservable inputs (level 3) relating to financial assets at fair value through profit or loss and net derivative financial instruments amount for the period ended 31 March 2016 for the Group Nil and €(11) million respectively (31 December 2015: Nil, Nil respectively).

Valuation Process and Control Framework

The Group has various processes in place to ensure that the fair values of its assets and liabilities are reasonably estimated and has established a control framework which is designed to ensure that fair values are validated by functions independent of the risk-taker. To that end, the Group utilizes various sources for determining the fair values of its financial instruments and uses its own independent functions to validate these results where possible.

Fair values of debt securities are determined either by reference to prices for traded instruments in active markets, to external quotations or widely accepted financial models, which are based on market observable or unobservable information where the former is not available, as well as relevant market-based parameters such as interest rates, option volatilities, currency rates, etc., and may also include a liquidity risk adjustment where the Group considers it appropriate.

The Group may, sometimes, also utilize third-party pricing information, and perform validating procedures on this information or base its fair value on the latest transaction prices available, given the absence of an active market or similar transactions. All such instruments, including financial instruments which are subject to material liquidity adjustments are categorized within the lowest level of fair value hierarchy (i.e. Level 3).

Generally, fair values of debt securities, including significant inputs on the valuation models are independently checked and validated by the Middle Office and Risk Management function on a systematic basis.

Fair values of derivatives are determined by Management using valuation models which include discounted cash-flow models, option pricing models or other appropriate models. Adequate control procedures are in place for the validation of these models, including the valuation inputs, on a systematic basis. Middle Office and Risk Management function provide the control valuation framework necessary to ensure that the fair values are reasonably determined, reflecting current market circumstances and economic conditions. Furthermore, over-the-counter derivatives are also compared on a daily basis with counterparties’ valuations, under the daily collateral management process.

Market Valuation Adjustments

Counterparty credit risk-adjustments are applied to all over-the-counter derivatives. Own credit-risk adjustments are applied to reflect the Group’s own credit risk when valuing derivatives. Bilateral credit-risk adjustments consider the expected cash flows between the Group and its counterparties under the relevant terms of the derivative instruments and the effect of the credit-risk profile of the counterparties on the valuation of these cash flows. Where appropriate, we take into consideration the credit-risk mitigating arrangements including collateral agreements and master netting arrangements into estimating own and counterparty credit risk valuation adjustments.

25

Notes to the Financial Statements

Group

Quantitative Information about Level 3 Fair Value Measurements - 31 March 2016

	Fair Value		Significant Unobservable	Range of Inputs
Financial Instrument	(€ million)	Valuation Technique	Input	Low		High
Financial assets at fair value through profit or loss	13	Price Based	Price	23.20		101.24
Available-for-Sale investment securities	8	Price Based	Price	93.76		93.76
	6	Collateral Based	Factor of Collateral Realization	42	%	65	%
	2	Comparable Multiples	Multiples on EV/EBITDA	5.50		7.40
	31	Agreed Buyout Consideration	Share of Proceeds Calculation	n/a		n/a
Interest Rate Derivatives	6	Discounted Cash Flows - Internal Model for CVA/DVA	Credit Spread	1000	bps	1000	bps
	2	Discounted Cash Flows - Internal Model for CVA/DVA	Constant Maturity Swap correlation between different tenors (e.g. 2yr 10 yrs)	67.79	%	90.00	%
	3	Discounted Cash Flows	FX pair correlation	-50.00	%	94.64	%
Other Derivatives	(17)	Discounted Cash Flows - Internal Model for CVA/DVA	Credit Spread	468	bps	660	bps

Quantitative Information about Level 3 Fair Value Measurements 31 December 2015

	Fair Value			Significant Unobservable	Range of Inputs
Financial Instrument	(€ million)		Valuation Technique	Input	Low		High
Financial assets at fair value through profit or loss	13		Price Based	Price	23.51		100.87
Available-for-Sale investment securities	9		Price Based	Price	93.76		93.76
	6		Collateral Based	Factor of Collateral Realization	42	%	65	%
	2		Comparable Multiples	Multiples on EV/EBITDA	5.50		7.40
	31		Agreed Buyout Consideration	Share of Proceeds Calculation	n/a		n/a
Interest Rate Derivatives	7	��	Discounted Cash Flows - Internal Model for CVA/DVA	Credit Spread	1000	bps	1000	bps
	1		Discounted Cash Flows - Internal Model for CVA/DVA	Constant Maturity Swap correlation between different tenors (e.g. 2yr 10 yrs)	67.79	%	90.00	%
	3		Discounted Cash Flows	FX pair correlation	-50.00	%	94.64	%
Other Derivatives	-4		Discounted Cash Flows - Internal Model for CVA/DVA	Credit Spread	322	bps	505	bps

Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs

For structured interest rate derivatives a significant change in the correlation inputs (e.g. the degree of correlation between two different interest rates, or between interest rates and foreign exchange rates) would result in a significant impact to the fair value of the individual instrument; however the magnitude and the direction of the impact depends on whether the Group is long or short the exposure among other factors.  Due to the limited exposure the Group has related to these instruments a reasonable change in the above unobservable inputs would not be significant to the Group. Additionally, interest rate derivatives include interest rate swaps for which the bilateral credit risk adjustment is significant in comparison to the fair value.  The counterparty credit-risk adjustment in these cases is mainly driven by the internal ratings of the counterparty. A reasonable increase in the credit spread of these entities would result in an insignificant change in the fair value of the Group’s financial instruments.

Within other derivatives are derivatives whose valuation is dependent on an FX pair correlation or on the volatility of an index. A reasonable increase in the correlation or the volatility of the index would not result in a material change in the financial instruments fair value for the Group.

For loans and advances to customers which the Group has elected the fair value option, the valuation includes a parameter which is not observable in the market, i.e. the credit spread of the client. A reasonable increase in the respective credit spreads used would not have a significant effect to their fair value for the Group.

26

Notes to the Financial Statements

Group

NOTE 16:Group companies

NBG Pangaea REIC is a subsidiary of the NBG Group although the Group owns a 32.66% ownership interest. Based on the contractual arrangements between the Group and the majority shareholder, the Group has the power to appoint and remove the majority of the members of board of directors and of the investment committee of NBG Pangaea REIC, which have the power to direct the relevant activities of NBG Pangaea REIC. Therefore, the management of NBG concluded that the Group has the practical ability to direct the relevant activities of NBG Pangaea REIC unilaterally and hence the Group has control over NBG Pangaea REIC.

			Group
Subsidiaries	Country	Tax years unaudited	31.03.2016		31.12.2015
NBG Securities S.A.	Greece	2009-2015	100.00	%	100.00	%
NBG Asset Management Mutual Funds S.A.	Greece	2009-2015	100.00	%	100.00	%
Ethniki Leasing S.A.	Greece	2010-2015	100.00	%	100.00	%
NBG Property Services S.A.	Greece	2010-2015	100.00	%	100.00	%
Pronomiouhos S.A. Genikon Apothikon Hellados	Greece	2010-2015	100.00	%	100.00	%
NBG Bancassurance S.A.	Greece	2010-2015	100.00	%	100.00	%
Innovative Ventures S.A. (I-Ven)(2)	Greece	2005-2015	100.00	%	100.00	%
Ethniki Hellenic General Insurance S.A.	Greece	2010-2015	100.00	%	100.00	%
Audatex Hellas S.A.(2)	Greece	2010-2015	70.00	%	70.00	%
National Insurance Brokers S.A.	Greece	2010-2015	95.00	%	95.00	%
ASTIR Palace Vouliagmenis S.A. (3)	Greece	2006-2015	85.35	%	85.35	%
ASTIR Marina Vouliagmenis S.A.(3)	Greece	2013-2015	85.35	%	85.35	%
Grand Hotel Summer Palace S.A.	Greece	2010-2015	100.00	%	100.00	%
NBG Training Center S.A.	Greece	2010-2015	100.00	%	100.00	%
KADMOS S.A.	Greece	2010-2015	100.00	%	100.00	%
DIONYSOS S.A.	Greece	2010-2015	99.91	%	99.91	%
EKTENEPOL Construction Company S.A.	Greece	2010-2015	100.00	%	100.00	%
Mortgage, Touristic PROTYPOS S.A.	Greece	2010-2015	100.00	%	100.00	%
Hellenic Touristic Constructions S.A.	Greece	2010-2015	77.76	%	77.76	%
Ethniki Ktimatikis Ekmetalefsis S.A.	Greece	2010-2015	100.00	%	100.00	%
Ethniki Factors S.A.	Greece	2010-2015	100.00	%	100.00	%
NBG Pangaea REIC	Greece	2010-2015	32.66	%	32.66	%
Karela S.A.	Greece	2010-2015	32.66	%	32.66	%
FB Insurance Agency Inc (2)	Greece	2012-2015	99.00	%	99.00	%
Probank M.F.M.C	Greece	2010-2015	100.00	%	100.00	%
Profinance S.A.(2)	Greece	2010-2015	100.00	%	100.00	%
Probank Leasing S.A.	Greece	2009-2015	84.71	%	84.71	%
NBG Insurance Brokers S.A.	Greece	2010-2015	99.98	%	99.98	%
Finansbank A.S. (3)	Turkey	2011-2015	99.81	%	99.81	%
Finans Finansal Kiralama A.S. (Finans Leasing) (3)	Turkey	—	98.72	%	98.78	%
Finans Yatirim Menkul Degerler A.S. (Finans Invest) (3)	Turkey	2011-2015	99.81	%	99.81	%
Finans Portfoy Yonetimi A.S. (Finans Portfolio Management) (3)	Turkey	2011-2015	99.81	%	99.81	%
IBTech Uluslararasi Bilisim Ve Iletisim Teknolojileri A.S. (IB Tech) (3)	Turkey	2011-2015	99.81	%	99.81	%
Finans Faktoring Hizmetleri A.S. (Finans Factoring) (3)	Turkey	2011-2015	99.81	%	99.81	%
E-Finans Elektronik Ticaret Ve Bilisim Hizmetleri A.S. (E-Finance) (3)	Turkey	2013-2015	50.90	%	50.90	%
Hemenal Finansman A.S.(ex PSA Finansman A.S.)(3)	Turkey	2011-2015	99.81	%	99.81	%
NBG Malta Holdings Ltd	Malta	2006-2015	100.00	%	100.00	%
NBG Bank Malta Ltd	Malta	2005-2015	100.00	%	100.00	%
United Bulgarian Bank A.D. - Sofia (UBB)	Bulgaria	2014-2015	99.91	%	99.91	%
UBB Asset Management Inc.	Bulgaria	2010-2015	99.92	%	99.92	%
UBB Insurance Broker A.D.	Bulgaria	2010-2015	99.93	%	99.93	%
UBB Factoring E.O.O.D.	Bulgaria	2010-2015	99.91	%	99.91	%
Interlease E.A.D., Sofia	Bulgaria	2010-2015	100.00	%	100.00	%
Interlease Auto E.A.D.	Bulgaria	2010-2015	100.00	%	100.00	%
Hotel Perun — Bansko E.O.O.D.	Bulgaria	2012-2015	100.00	%	100.00	%
ARC Management Two EAD (Special Purpose Entity)	Bulgaria	2013-2015	100.00	%	100.00	%
NBG Securities Romania S.A.(1)	Romania	—	—		100.00	%
Banca Romaneasca S.A.	Romania	2009-2015	99.28	%	99.28	%
NBG Leasing IFN S.A.	Romania	2010-2015	99.33	%	99.33	%
S.C. Garanta Asigurari S.A.	Romania	2003-2015	94.96	%	94.96	%
ARC Management One SRL (Special Purpose Entity)	Romania	2013-2015	100.00	%	100.00	%
Egnatia Properties S.A.	Romania	2011-2015	32.66	%	32.66	%
Vojvodjanska Banka a.d. Novi Sad	Serbia	2010-2015	100.00	%	100.00	%
NBG Leasing d.o.o. Belgrade	Serbia	2004-2015	100.00	%	100.00	%
NBG Services d.o.o. Belgrade	Serbia	2009-2015	100.00	%	100.00	%
Stopanska Banka A.D.-Skopje	F.Y.R.O.M.	2014-2015	94.64	%	94.64	%
NBG Greek Fund Ltd	Cyprus	2010-2015	100.00	%	100.00	%
National Bank of Greece (Cyprus) Ltd	Cyprus	2006 & 2008-2015	100.00	%	100.00	%
National Securities Co (Cyprus) Ltd  (2)	Cyprus	—	100.00	%	100.00	%

27

Notes to the Financial Statements

Group

			Group
Subsidiaries	Country	Tax years unaudited	31.03.2016		31.12.2015
NBG Management Services Ltd	Cyprus	2011-2015	100.00	%	100.00	%
Ethniki Insurance (Cyprus) Ltd	Cyprus	2011-2015	100.00	%	100.00	%
Ethniki General Insurance (Cyprus) Ltd	Cyprus	2011-2015	100.00	%	100.00	%
National Insurance Agents & Consultants Ltd	Cyprus	2008-2015	100.00	%	100.00	%
Quadratix Ltd	Cyprus	—	32.66	%	32.66	%
The South African Bank of Athens Ltd (S.A.B.A.)	S. Africa	2015	99.79	%	99.79	%
NBG Asset Management Luxemburg S.A.	Luxembourg	2013-2015	100.00	%	100.00	%
NBG International Ltd	U.K.	2004-2015	100.00	%	100.00	%
NBGI Private Equity Ltd	U.K.	2004-2015	100.00	%	100.00	%
NBG Finance Plc	U.K.	2004-2015	100.00	%	100.00	%
NBG Finance (Dollar) Plc	U.K.	2008-2015	100.00	%	100.00	%
NBG Finance (Sterling) Plc	U.K.	2008-2015	100.00	%	100.00	%
NBG Funding Ltd	U.K.	—	100.00	%	100.00	%
NBGI Private Equity Funds(3)	U.K.	2004-2015	100.00	%	100.00	%
Revolver APC Limited (Special Purpose Entity) (2)	U.K.	2015	—		—
Revolver 2008-1 Plc (Special Purpose Entity) (2)	U.K.	2015	—		—
Titlos Plc (Special Purpose Entity)	U.K.	2015	—		—
Spiti Plc (Special Purpose Entity)	U.K.	2014-2015	—		—
Autokinito Plc (Special Purpose Entity)	U.K.	2014-2015	—		—
Agorazo Plc (Special Purpose Entity)	U.K.	2014-2015	—		—
NBGI Private Equity S.A.S.	France	2008-2015	100.00	%	100.00	%
NBG International Holdings B.V.	The Netherlands	2014-2015	100.00	%	100.00	%
Nash S.r.L.	Italy	2011-2015	32.66	%	32.66	%
Fondo Picasso	Italy	2011-2015	32.66	%	32.66	%
Banka NBG Albania Sh.a.	Albania	2013-2015	100.00	%	100.00	%

(1) Company liquidated in January 2016

(2) Companies under liquidation.

(3) ASTIR Palace Vouliagmenis S.A., ASTIR Marina Vouliagmenis S.A. NBGI Private Equity Funds and Finansbank A.S. and it’s subsidiaries have been reclassified to Non-current assets held for sale (see Note 8).

The Group’s equity method investments are as follows:

		Tax years	Group
	Country	unaudited	31.03.2016		31.12.2015
Social Securities Funds Management S.A.	Greece	2010-2015	20.00	%	20.00	%
Larco S.A.	Greece	2009-2015	33.36	%	33.36	%
Eviop Tempo S.A.	Greece	2011-2015	21.21	%	21.21	%
Teiresias S.A.	Greece	2010-2015	39.93	%	39.93	%
Hellenic Spinning Mills of Pella S.A.(1)	Greece	—	20.89	%	20.89	%
Planet S.A.	Greece	2009-2015	36.99	%	36.99	%
Pyrrichos Real Estate S.A.	Greece	2010-2015	21.83	%	21.83	%
SATO S.A.	Greece	2006-2015	23.74	%	23.74	%
Olganos S.A.	Greece	2014-2015	33.60	%	33.60	%
Bantas A.S. (Cash transfers and Security Services)(3)	Turkey	2011-2015	33.27	%	33.27	%
Cigna Finans Pension(3)	Turkey	2011-2015	48.91	%	48.91	%
UBB AIG Insurance Company A.D.(2)	Bulgaria	—	—		59.97	%
UBB Metlife Life Insurance Company A.D.	Bulgaria	2010-2015	59.97	%	59.97	%
Drujestvo za Kasovi Uslugi AD (Cash Service Company)	Bulgaria	17.7.2010-2015	19.98	%	19.98	%

(1) Under liquidation

(2) The UBB AIG Insurance Company A.D. disposal was completed in January 2016.

(3) Equity method investements of Finansbank A.S. which has been reclassified as Non-current assets held for sale.

28

Notes to the Financial Statements

Group

NOTE 17:Events after the reporting period

Since 14 April 2016, the EFSF has allowed the Bank to sell the EFSF bonds received from the HFSF for the Bank’s recapitalization in June 2013 and to cover the funding gap from the acquisition of FBB to the members of the Eurosystem in the context of the Public Sector Asset Purchase Programme established by ECB Governing Council Decision 2015/774 on a secondary markets public sector asset purchase programme (the “PSPP”) and strictly in accordance with the conditions applicable to the PSPP as amended by the ECB Governing Council decision of 10 March 2016, including but not limited to issue and issuer share limit applicable to EFSF. Following this decision by the EFSF the Bank has, from 14 April until 26 May 2016, sold to members of the Eurosystem EFSF bonds of nominal amount €1,025 million.

Other Post balance sheet events are disclosed in Notes 2.3, 5, 8 and 10d.

NOTE 18:Reclassifications of financial assets

In 2015, the Group reclassified certain available-for-sale securities as loans-and-receivables. At the date of reclassification, the reclassified bonds were not quoted in an active market and the Group has the intention and ability to hold them for the foreseeable future or until maturity. The nominal and the carrying amount of the reclassified bonds on 31 March 2016 were €681 million and €516 million respectively. Had these securities not been reclassified, the other comprehensive income would have been lower by €20 million.

In 2010, the Group reclassified certain available-for-sale and trading securities as loans-and-receivables, and certain trading securities to the available-for-sale and held-to-maturity categories. On 31 March 2016, the carrying amount of the securities reclassified in 2010 and still held by the Group is €967 million. The market value of these securities is €238 million for the Group. During the period ended 31 March 2016, €3 million of interest income were recognised by the Group. Had these securities not been reclassified, the available-for-sale securities reserve, net of tax, would have been lower by €32 million.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	National Bank of Greece S.A.
	/s/ Ioannis Kyriakopoulos
	(Registrant)
Date: May 26th, 2016
	Chief Financial Officer
	/s/ George Angelides
	(Registrant)
Date: May 26th, 2016
	Director, Financial Division

30