NATIONAL BANK OF GREECE SA

CIK:0001096061|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 EUR (€) € / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 EUR (€) € / shares	Dec. 31, 2015 EUR (€) € / shares
Interest Income:
Loans	€ 1,423	$ 1,718	€ 1,512	€ 1,659
Securities available-for-sale	86	104	78	53
Securities held-to-maturity	0	0	24	80
Trading assets	50	60	59	59
Interest-bearing deposits with banks	5	6	5	4
Other	13	16	15	14
Total interest income	1,577	1,904	1,693	1,869
Interest Expense:
Deposits	(226)	(273)	(328)	(583)
Securities sold under agreements to repurchase	(20)	(24)	(5)	(2)
Long-term debt	(28)	(34)	(22)	(53)
Other	(37)	(45)	(192)	(48)
Total interest expense	(311)	(376)	(547)	(686)
Net interest income before provision for loan losses	1,266	1,528	1,146	1,183
Provision for loan losses	(610)	(737)	(499)	(3,190)
Net interest income/(loss) after provision for loan losses	656	791	647	(2,007)
Non-interest income /(loss):
Credit card fees	60	72	47	34
Service charges on deposit accounts	6	7	7	2
Other fees and commissions	252	304	223	236
Net trading gain/(loss)	48	58	(324)	201
Equity in earnings of investees and realized gains/(losses) on disposal of equity method investments	3	4	1	2
Other non-interest income	94	113	350	115
Total non-interest income / (loss) excluding gains / (losses) on investment securities	463	558	304	590
Net realized gains/(losses) on sales of available-for-sale securities	70	85	88	(9)
Other than temporary impairment of AFS and HTM securities	0	0	(2)	(26)
Net gains / (losses) on available for sale and held to maturity securities	70	85	86	(35)
Total non-interest income / (loss)	533	643	390	555
Non-interest expense:
Salaries and employee benefits	(588)	(710)	(645)	(655)
Occupancy expenses	(40)	(48)	(43)	(46)
Equipment expenses	(24)	(29)	(24)	(23)
Depreciation of premises and equipment	(48)	(58)	(46)	(49)
Amortization of intangible assets	(39)	(47)	(42)	(40)
Impairment of goodwill	0	0	0	(115)
Deposit insurance premium	(55)	(66)	(62)	(84)
Other non-interest expense	(407)	(491)	(435)	(888)
Total non-interest expense	(1,201)	(1,449)	(1,297)	(1,900)
Loss before income tax	(12)	(15)	(260)	(3,352)
Income tax (expense) / credit	19	23	21	(30)
(Loss) / income from continuing operations	7	8	(239)	(3,382)
Loss from discontinuing operations	(235)	(284)	(62)	(5,085)
Net income / (loss)	(228)	(276)	(301)	(8,467)
Less: Net (income) / loss attributable to the non-controlling interest	(2)	(2)	1	3
NET INCOME / (LOSS) attributable to NBG shareholders	(230)	(278)	(300)	(8,464)
Net loss	(228)	(276)	(301)	(8,467)
Net (losses)/gains from foreign currency translation adjustments:
Foreign currency translation adjustments reclassified to income statement related to disposed subsidiaries	175	211	3,133	0
Other foreign currency translation adjustments	(47)	(57)	(148)	(604)
Total net (losses)/gains from foreign currency translation	128	154	2,985	(604)
Net (losses)/gains on available-for-sale securities:
Net unrealized holding (losses)/gains during the period (net of tax expense/(benefit) of: EUR 27 million in 2015, EUR 91 million in 2016 and EUR 104 million in 2017)	199	240	352	108
Reclassification to income statement due to disposal of subsidiaries (net of tax (expense)/benefit of: EUR NIL million in 2015, EUR (23) million in 2016 and EUR NIL in 2017)	(22)	(27)	(115)	0
Less: reclassification adjustment for net (gains)/losses included in net income (net of tax (expense)/benefit of: EUR (4) million in 2015, EUR (26) million in 2016 and EUR (18) million in 2017)	(67)	(81)	(94)	(9)
Less: Reclassification adjustment for other-than-temporary impairment of available-for-sale securities (net of tax benefit of EUR 10 million in 2015, EUR 2 million in 2016 and EUR NIL million in 2017)	0	0	4	26
Total net (losses)/gains on available-for-sale securities	110	132	147	125
Net (losses)/gains on pension (liability)/asset:
Reclassification to income statement due to disposal of subsidiaries	1	1	18	0
Pension (liability)/asset (net of tax expense/(benefit) of EUR 6 million in 2015, EUR (3) million in 2016 and EUR 1 million in 2017)	6	7	(8)	31
Total net gains on pension (liability)/asset	7	8	10	31
Total other comprehensive income / (loss), net of tax	245	294	3,142	(448)
Comprehensive (loss) / income	17	18	2,841	(8,915)
Less: Comprehensive income attributable to the non-controlling interest	(2)	(2)	(3)	(4)
Comprehensive (loss) / income attributable to NBG shareholders	€ 15	$ 16	€ 2,838	€ (8,919)
Earnings / Loss per share
Basic and diluted LPS from continuing operations \| (per share)	€ 0	$ 0	€ (0.03)	€ (2.94)
Basic and diluted LPS from continuing and discontinued operations \| (per share)	€ (0.03)	$ (0.04)	€ (0.03)	€ (9.41)

CONSOLIDATED STATEMENTS OF CASH FLOWS € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 EUR (€)	Dec. 31, 2015 EUR (€)
Cash flows from Operating Activities:
Net loss	€ (228)	$ (276)	€ (301)	€ (8,467)
Adjustments to reconcile net loss to net cash provided by / (used in) operating activities:
Provision for loan losses	610	737	499	3,190
Net (gain) / loss on sale of premises and foreclosed assets	5		0	1
Other Than Temporary Impairment of AFS and HTM securities	0	0	2	26
Depreciation of premises and equipment	48	58	46	49
Amortization of software and other intangibles	39	47	42	40
Impairment of goodwill	0		0
Net cash provided by/(used in):
Cash and due from banks at beginning of year	679
Cash and due from banks at end of year	1,394	1,683	679
Continuing Discontinuing Operations
Cash flows from Operating Activities:
Net loss	(228)	(275)	(301)	(8,467)
Adjustments to reconcile net loss to net cash provided by / (used in) operating activities:
Provision for loan losses	642	775	764	3,688
Net (gain) / loss on sale of premises and foreclosed assets	0	0	2	(64)
Net realized gain on sales of available-for-sale securities	(85)	(103)	(121)	(17)
Other Than Temporary Impairment of AFS and HTM securities	0	0	10	36
Equity in earnings of equity method investees	(3)	(4)	(2)	11
Depreciation of premises and equipment	55	66	78	106
Amortization of software and other intangibles	42	51	67	192
Impairment of goodwill	0	0	1	1,983
Impairment of equity method investments	0	0	0	22
Pension liability	22	27	34	36
Provision for deferred income taxes	(60)	(72)	(61)	(35)
Net (gain) / loss on the disposal of subsidiaries	196	237	(137)	0
Net (gain) / loss from changes in the fair value of financial instruments designated at fair value	(9)	(11)	27	(41)
Gain on debt extinguishment	0	0	0	(27)
Gain from bargain purchase on business combination	0	0	0	0
Interest on financing obligation from sale of real estate	35	42	34	37
Impairment of assets classified as held for sale	170	205	5	3,619
Other non cash items including provisions for contingencies and impairment of other assets	14	17	33	341
Changes in assets and liabilities
Trading assets, derivative instruments and financial assets market-to-market through the profit and loss	(506)	(611)	230	(635)
Accrued interest receivable	31	37	213	37
Other assets	2	2	(147)	(204)
Accounts payable, accrued expenses and other liabilities	385	465	(360)	(331)
Insurance reserves	(258)	(312)	99	(154)
Cash flows provided by operating activities	445	536	468	133
Activities in available-for-sale securities:
Purchases	(5,287)	(6,384)	(4,123)	(3,384)
Sales proceeds	9,080	10,964	4,101	1,181
Maturities, prepayments and calls	2,983	3,602	2,948	2,303
Activities in held-to-maturity securities:
Purchases	0	0	(110)	(449)
Maturities, prepayments and calls	0	0	89	540
Acquisition of subsidiaries	0	0	(4)	0
Disposal of subsidiaries, net of cash disposed	678	819	3,283	0
Purchases of premises and equipment and intagibles	(188)	(227)	(177)	(316)
Proceeds from sales of premises and equipment and intagibles	13	16	14	104
Disposals / (acquisitions) of equity investments	9	11	1	(1)
Net cash provided by (used in):
Deposits with central bank	(238)	(287)	(352)	(4)
Loan origination and principal collections	1,220	1,473	881	118
Securities purchased under agreements to resell	(40)	(48)	(1)	85
Interest bearing deposits with banks	380	459	146	252
Other	0	0	0	0
Cash flows provided by investing activities	8,610	10,398	6,696	429
Cash flows from Financing Activities:
Proceeds from issuance of long-term debt	856	1,034	435	1,195
Principal repayments and retirements of long-term debt	(431)	(520)	(1,567)	(1,034)
Proceeds from issuance of common and preferred stock (net of issue costs of EUR 32 million in 2015 and EUR 30 million in 2016 relating to 2015 issuance)	0	0	(30)	1,421
Repayment of the convertible securities issued by the Bank to HFSF	0	0	(2,029)	0
Purchases of treasury stock	(33)	(40)	(34)	(67)
Proceeds from sales of treasury stock	34	41	34	66
Sale of Real Estate accounted for as financing obligation	(34)	(41)	(74)	(74)
Disposal of subsidiary shareholding without loss of control	0	0	0	1
Dividends paid to non-controlling interests	(2)	(2)	(2)	0
Net cash provided by/(used in):
Deposits	(7,735)	(9,340)	(10,570)	2,219
Securities sold under agreements to repurchase	(1,311)	(1,583)	4,822	(3,488)
Other borrowed funds	47	57	735	(1,291)
Cash flows provided used in financing activities	(8,609)	(10,394)	(8,280)	(1,052)
Effect of exchange rate change on cash and due from banks	1	2	(28)	(68)
Net (decrease) / increase in cash and due from banks	447	542	(1,144)	(558)
Cash and due from banks at beginning of year	1,025	1,238	2,169	2,727
Cash and due from banks at end of year	1,472	1,780	1,025	2,169
Cash paid for:
Income taxes	(129)	(156)	64	255
Interest	277	$ 334	1,181	1,955
Supplemental schedule of non cash investing and financing activities:
Common share capital increase of EUR 2,673 million out of which EUR 676 million through subscription in kind (see Note 33)	0		0	676
Common share capital increase of EUR 2,673 million out of which EUR 64 million through mandatory conversion of long term debt securities (see Note 33)	0		0	64
Common share capital increase of EUR 2,673 million out of which EUR 481 million through conversion of preference shares (see Note 33)	0		0	481
Contribution by HFSF of bonds issued by ESM in return for the convertible securities issued by the Bank (see Note 33)	€ 0		€ 0	€ 2,029