15 May, 2006

2006: A Milestone Year for the Greek Postal Savings Bank

Positive financial results and great prospective development in view of the company’s entry into the Athens Stock Exchange

Mr. Panos Tsoupides, President and Chairman of the Board of Directors of the Greek Postal Savings Bank.

2006 proves to be a milestone year for the Greek Postal Savings Bank. The company’s financial results for the last fiscal year, as well as its prospects in view of its upcoming entry into the Athens Stock exchange are indicative of its stable growth and healthy development.

During the Press Conference, the Greek Postal Savings Bank’s financial results as well as its objectives and development strategy were presented. Company executives expressed their satisfaction with regards to the exceptional financial results, which serve to strengthen the company’s growth and exhibit its great potential.

As Mr. Panos Tsoupides, President and Chairman of the Board of Directors of the Greek Postal Savings Bank stressed with regards to the company’s apparent success: “The course of the Greek Postal Savings Bank constitutes proof that with vision, long-term planning and devotion to its objective, every organization can benefit by managing change successfully and advancing forward with confidence”.

Financial Results

With regards to financial results, consolidated assets amounted to € 11,6 billion noting a 6% increase over the previous fiscal year (December 31, 2004). Fiscal pre-tax net profits amounted to €149,9 million, while after-tax net profits amounted to €122,5 million. The Tier I capital sufficiency index reached 14,6% while the total capital sufficiency index stood at 13,1%.
“The increase in our revenues is supported by our high liquidity rates, based in turn on a solid deposits base. Careful investments have been made in high quality securities and interbank deposits, as well as in our developing lending portfolio” stressed Mr. Giorgos Xyfaras, Director of Financial Services of the Greek Postal Savings Bank.

Results for the fiscal year 2005 in accordance with the International Standards of Financial Reporting

• Total Assets: €11,6 billion
• Fiscal Pre-Tax Profits: €149,9 million
  
• Deposits: €9,9 billion
• Customer base: 2,8 million active customer accounts
  
• Shareholders’ Equity: €864,9 million
• Net After-Tax Profits: €122,5 million
  
• Capital Sufficiency Index: 13,1%
  
• Risks: Nearly Zero (Minimal)

Athens, May 15 2006

Mr. Panos Tsoupides, stressed the systematic effort exhibited in recent years and which contributed to the Organization’s strong performance in 2005, stating that “The Organization’s course of continuous growth and profitability is based on the stable foundations of a combination of strong capital sufficiency, high quality portfolio and a single vision shared both by employees and management. This course is imprinted on the Greek Postal Savings Bank’s financial results and further support the Organization’s structure and solid business model”.

With a history of over 104 years, the Greek Postal Savings Bank justly claims its role in the Greek economy. During 2006 the Organization has been preparing its upcoming entry into the Athens Stock Exchange, thereby taking advantage of one of the most important opportunities in this new era. The objective behind this important strategic step is to establish the Bank as a major player within the Greek banking system, as well as to increase its efficiency and competitiveness.

Objectives and Strategy of Growth

With the central message “We support the invisible heroes” - which also inspired the Greek Postal Savings Bank’s communications campaign and orientation – the executives of the Organization, presented the Organization’s objectives and growth strategy, with reference to the entry into the Athens Stock Exchange.

In particular, one of the Organization’s most basic objectives is to achieve high growth rates through increased cross-selling and modern marketing and promotional methods, an increased customer base and the promotion of additional products and services, as well as optimal customer service supported by a wide distribution network and a strengthened strategic alliance with the Hellenic Post.

Moreover, the Greek Postal Savings Bank aims at the complete modernization and strengthening of its infrastructure, while undertaking specific initiatives to upgrade its operations and IT areas, focus on human resources training and improving process management.

The Organization’s Senior Management, in view of the company’s entry into the Athens Stock Exchange, aspires to achieve high profitability to benefit all partners, while taking measures to maintain its competitive advantages such as low cost of services, effective management and high return on investments.

Finally, particular mention was made to the Organization’s communications strategy. Additionally, the President of the workers’ association declared that the overall undertaking represents a common objective that unites management and staff.