This advance in profitability reflects the rapid growth in banking business in both the domestic market and the markets of Turkey and Southeast Europe, as provided for in the Group’s three-year business plan. Specifically:

• Net profit from domestic business grew by 37% yoy to €1 095 million.

• The contribution of Finansbank to Group profit in 2007 amounted to €448 million compared with €87 million in 2006.

• Group units operating in SE Europe posted 41% growth in net profit to €155 million in 2007.

Total Group lending in 2007 amounted to €56 billion, up 27% on the previous year. Likewise, deposits grew 13% to €60 billion compared with €53 billion in 2006. The loan-to-deposit ratio remained at 90%, among the lowest internationally. This low ratio, which implies excess liquidity, serves as a strategic advantage under the current conditions in the global money and capital markets, and secures stability and a source of funding for the Group’s future expansion.

SE Europe: dynamic and profitable growth continues unabated

In December 2007, the Group’s presence in SE Europe totalled 655 branches (120 units have been added since 2006) and over 8 500 staff.

Total lending in the Group’s SE European operations grew 61% yoy to €6.8 billion, enhancing the Group’s overall market share by 100 bps to 8.5%. Retail lending posted growth of 68% yoy to €2.7 billion, while similar performance was reported by business lending (€4.1 billion in 2007), up 57% on an annual basis.

This growth has not had any adverse impact on the quality of the loan book, as the NPL ratio stands at just 4.3% and the loan coverage ratio at 85%.

Dynamic expansion in the countries of SE Europe drove the profitability of the Group’s units in the region to impressive levels. Net profit in 2007 amounted to €155 million, up 41% yoy.