1 Andreas Stavrou, Manager International Business Centre -

The Banking System 2 Cyprus

 EU member since May 2004 & Euro zone member since January 2008  Proven versatility in crisis  Milder effects from the economic crisis  Stable, conservative Central Banking System and effective regulatory framework  The financial sector withstood the global crisis and no public recapitalization or government support was necessary  Cyprus is in the OECD white list  Ranked by Forbes as No.22 of “Best Countries for Business”  Economy dominated by the Services Sector – 78% of GDP  http://www.centralbank.gov.cy/ 3 Cyprus ratings

The most recent 10-year CY bond which was Issued in February 2010 is now trading at 150 bps spread.

On 24 June 2010 Fitch affirmed Cyprus ratings

4 CBC Governor comments

“That said, I should point out that the budget deficit estimate for 2009 puts Cyprus in the middle of the range for the euro area as a whole. The situation is clearly not as dire as in some other euro area countries. To some degree this is because the recession we experienced in 2009 was not as deep as in other regions of the euro area.

A comparison with the Greek economy is not warranted. Our budget finances are in better shape and our debt to GDP ratio is considerably smaller.”

Athanasios Orphanides, Governor of the Central of Cyprus, Interview with Bloomberg, 11 February 2010

5 Cyprus going strong in 2010

 Total deposits ιn Cyprus increased by €8,8 billion during the first 6 months of 2010 (15,0% to €66,9 billion) - reflecting the "safe- heaven" qualities of the market.  Property sales rising  Qatar agreement: a $500M joint project in hospitality/property sectors confirming Cyprus economic potential

"Our decision to proceed with such a large investment in Cyprus is due to the fact that the Cypriot economy has not been affected to a great extent by the (world) financial crisis. The Cypriot economy has opportunities for growth." Qatar's Emir, Sheikh Hamad bin Khalifa al-Thani Nicosia 21.4.2010

6 Cyprus Banking 7 Cyprus Banking  A market driven system based on English law, a legacy of the British colonial rule  Marfin Laiki Bank, BOC – more than 100 years old  Legal and Banking structures (still) reflect British equivalents  Corporations Act 1925 - Marfin Laiki is number 1 on Register of Companies  Open, competitive, multivariate, multidimensional, even multicultural Banking Industry  Well capitalised and profitable  www.acb.com.cy

8 A Multitude of Banks of past and present LISTED BANKS OTHER BANKS BRANCHES OF BANKS OF 1.Marfin Popular Bank Public Co Ltd 1. Co-operative Central Bank Ltd COUNTRIES OTHER THAN EU 1. BankMed s.a.l. 2. Public Company Ltd 2. The Cyprus Development Bank 2. Arab Jordan Investment Bank SA 3. Public Company Ltd Public Company Ltd 3. Housing Finance Corporation 3. BANQUE BEMO SAL 4.USB Bank Plc 4. Bank of Beirut SAL 4. Mortgage Bank of Cyprus Ltd 5. BBAC SAL SUBSIDIARIES OF FOREIGN BRANCHES OF BANKS OF BANKS EU COUNTRIES 6. BLOM Bank SAL 7. Byblos Bank SAL  Αlpha Bank Cyprus Ltd 1. Bank PLC 8. Credit Libanais SAL  BNP Paribas Cyprus Ltd 2. Banque SBA SA 9. FBME Bank Ltd  3. First Investment Bank Ltd – Cyprus Limited 10.Open joint-stock 4. Joint Stock Company “Trasta  Kommunalkredit International Bank company AvtoVAZbank Komercbanka” Ltd 11.OJSC Promsvyazbank 5. National Bank of S.A.  National (Cyprus) Ltd 12.Jordan Kuwait Bank PLC 6. Central Cooperative Bank PLC  Russian (Cyprus) 13.Jordan Ahli Bank plc Ltd 7. Banca Transilvania S.A. 14.Lebanon and Gulf Bank SAL  Societe Generale Cyprus Ltd 8. Joint Stock Company Akciju 15.Lloyds TSB Offshore Limited  (Cyprus) Ltd Komercbanka "Baltikums" 16.Privatbank Commercial Bank REPRESENTATIVE OFFICES  Eurobank EFG Cyprus Ltd 1. UBS AG 17.IBL Bank sal 2. Atlasmont Banka A.D.

9 Central Bank of Cyprus (CBC)

 Cyprus joined euro area on 1 January 2008  Interest rate management is now the responsibility of the European Central Bank (ECB)  Governor is a member of the Board of ECB  The primary objective of the ECB is to ensure price stability, which means keeping inflation rates below, but close to, 2%  The CBC has supervision over the commercial banks  http://www.centralbank.gov.cy

10 An Effective Supervisory Mechanism

 Proven track record in setting Monetary Policy and safeguarding the Banking system  IMF’s Assessment of Financial Sector Supervision Report: “Supervision is strong, effective and in compliance with International Standards”  Full adoption of European Regulation  Use of non-interest rate tools proactively:  Tight(er) liquidity requirements – only 30% of FX deposits can be lend out by Banks – increases funding cost  Managed “cooling off” of the property market: tightened LVRs since mid 2007, to 70%.  Large credit exposures are discouraged to avoid concentration risk. 11 More deposits than loans

65,00  Cyprus is self sufficient in liquidity, post 60,00 (liquidity) crisis 55,00 50,00  No deposit withdrawals by international 45,00 40,00 customers 35,00 30,00  Loan growth under control 25,00  April 2010 Loans/deposits 95% DEC 05 DEC06 DEC 07 DEC 08 DEC 09 FEB 10 €bn JUNE 06 JUNE 07 JUNE 08 JUNE 09 MAR 10 APR 10  €4,1bn increase in deposits in first 4 Loans Deposits months of 2010 (7% increase)

50

45

40  Euro deposits growing faster than FX 35 since mid 2006 30

25  Time deposits grew faster than demand 20 after Sep 2008 15

10 DEC 05 DEC 06 DEC 07 DEC 08 DEC 09 FEB 10 APR10

€bn FCY EUR

12 A Competitive Banking Market

 Commercial Banking 8 local Banks and other credit Institutions 9 subsidiaries of Foreign Banks 27 International Banks operate branches Very open & automatic for EU Banks 462 branches plus 33 IBUs Supervised by the Central Bank of Cyprus  Large Cooperative sector 111 co-ops Supervised by the Cooperative Central Bank

13 Experiences from Abroad

Entry to CEE Targeting Banking Entry of main Greek & experiences in Cypriot banks was a calculated Cypriot UK, , in Greek move to extend populations in USA, South Market products and developed Africa, solidified services to countries international existing strengths and (international) experiences client base

14 Commercial Banking

 Highly educated human resources  Strong Banking Fundamentals  Adoption of Basel II  Conservative Lending Practices  Good breakdown of operations between markets  Very good profitability record  No exposure to “Toxic Assets”  Healthy Capital and Liquidity positions  EU-wide stress testing results indicate ability of domestic banking sector to withstand shocks  Limited exposure to CEE

15 ranks MLB as the least exposed in CEE amongst peers

1616 Solid Financial Package attracts International businesses  Benign low tax environment  Extensive Array of Double Taxation treaties  Mature Legal and Accounting practices  Strong Banking Sector  Euro shields against currency crisis provides access to ECB arsenal of support expands the attractiveness of the Banking system for foreign deposits and transactions Attraction of International Businesses expands banking client base

17 Government Crisis Support

 Was not needed for Cyprus Banks given their strengths and reasonable risk exposures  In fact, the Cyprus Government did not have to “bail out” or provide direct support to any private organisation.  Government has the means for direct support but their use has been unnecessary in the global crisis of 2008/09  Fiscal stimulus package being implemented  The Central Bank of Cyprus offers and operates a Deposit Protection Scheme up to €100.000 per person or legal entity per Bank.

18 Update on Cyprus Banking System

“Despite negative developments in the real economy, our banking system remains in very good condition. Our banks are healthy, robust and have a strong capital base with a capital adequacy ratio of 11.9% at December 21, 2009, well above the minimum requirement of 8%.

The ratio of non-performing loans, which was declining steadily over time, may have increased in 2009 but is still within acceptable levels. Please note that satisfactory provision for bad debts has been set aside for these loans. Regarding the profitability of banks, this has been satisfactory in 2009. During the year under review, which was a difficult year, banks have remained profitable, but with a smaller profit than that of 2008” Athanasios Orphanides, Governor of Central Bank of Cyprus, Press Conference, Nicosia 3 May 2010

19 A good Example

Marfin Laiki Bank 20 Group Profile – 109 Years Old

 Marfin Laiki Bank (MLB) is strategically positioned as an emerging regional player with two home markets, Greece & Cyprus, and operations spanning in 11 countries in Emerging Europe, UK, Australia, , Russia & Ukraine  Regional bank with focus on corporate banking, and international business banking  Ten years of robust growth both organically and through a series of mergers & acquisitions and strategic alliances  Successful management track record and entrepreneurial culture  Head-Office in Cyprus  507 branches, over 9.500 staff  http://www.marfinlaiki.com.cy/

21 507 branches Internationally

ESTONIA 4 RUSSIA 29

4 UKRAINE GUERNSEY 63 1

ROMANIA 27

SERBIA 28

GREECE AUSTRALIA 10 185

41 115 CYPRUS MALTA

22 Credit Ratings

Credit Ratings Capital Raising 7.7.2010

“…Marfin Popular Bank Public Co Ltd (“Bank”) announces that it has successfully completed on June 25, 2010, the issue of the second Tranche of Capital Securities 2010 through a public offer, … Baa2 Overall, through the two Tranches the amount of €295.524.000 was raised by the issue of 295.524 Capital Securities of nominal value €1.000 each. The Capital BBB+ Securities will be included to the Hybrid Tier I Capital of the Bank, following the already obtained relevant approval by the Central Bank of Cyprus, further enhancing the strong capital base of the Marfin Popular Bank Group.

23 Strong Shareholders-Allies

 MLB shares are listed on the and the Cyprus Stock Exchanges  Biggest shareholder is Dubai Investment Fund with 18,81%  No exposure to Dubai fund or Dubai economy – confirmed by press release and Rating Agencies comments  Other key shareholders proposed purchase of stake  http://www.dubaigroup.com/  2nd biggest is (MIG) with 9,55%  Listed in Athens Stock Exchange  €5,19bn capital raising through private placement completed in July 2007  Most recent investment: Olympic Airlines  April 2010 sold Chipita for €730m and is accumulating cash for new investment opportunities  http://www.marfininvestmentgroup.com/

24

Financial Information

Key balance sheet items (€m) FY08 FY09 1H10 Loans to customers (net) 23.427 25.082 27.513 Total assets 38.367 41.828 43.287 Customer deposits 24.828 23.886 25.344 Total equity 3.430 3.636 3.563 Tangible equity 2.165 2.358 2.270 Key ratios FY08 FY09 1H10 Tier 1 8,6% 9,7% 9,8% Capital adequacy ratio 10,6% 11,8% 11,5% Cost/income 54,5% 58,1% 60,4% NIM 2,4% 1,72% 1,80% Loans/Deposits 94,4% 104,0% 104,9% NPLs 4,3% 6,1% 6,6% Provisioning 61 bps 105 bps 105 bps

2525 CEO comments on 1H10 Results

31.08.10 Mr. Efthimios Bouloutas, CEO of Marfin Popular Bank Group, made the following statement: “The Group’s strong operating performance during 1H 2010 reflects the success of our strategy established on both prudent balance sheet management and rigorous risk management culture, in conjunction with strong focus on client service. In this exceptionally challenging business environment, the Group succeeded to further increase its operating profitability, while maintaining its solid capital and comfortable liquidity position. The quality of the Group’s revenues combined with pre-provision organic profitability demonstrated significant improvement compared with 1H 2009, while NPL formation marked a meaningful decline. The combination of the above together with additional provisions led to the further improvement of the provision coverage ratio and the strengthening of the Group’s balance sheet against future developments. Our Group, appreciating the social role it has to play in these adverse conditions globally, and especially in Greece, has continued the uninterrupted supply of credit to its clients. In 1H 2010, the Group’s market shares in new loan disbursements exceeded 25% in Cyprus (highest rank) and 21% in Greece (second highest rank). With these actions we consider that we contribute practically and materially to the efforts of our clients and the communities we operate as they undergoing the adjustment process and reposition for growth.”

2626 2010 EU Wide Stress Test Exercise

□ The exercise was conducted using the scenarios, methodology and key assumptions provided by CEBS.

□ As a result of the assumed shock under the adverse scenario, the estimated consolidated Tier 1 capital ratio would change to 8,5% in 2011 compared to 9,4% as of end of 2009.

□ An additional sovereign risk scenario would have a further impact of 1,4 percentage point on the estimated Tier 1 capital ratio, bringing it to 7,1% at the end of 2011, compared with the CRD regulatory minimum of 4%.

□ Additional buffer of €302m exists!

2727 Marfin Laiki Bank Achievements

“Best Investment Services Provided, “Special 10 Year Cyprus 2008” Recognition Awarded by “World Award for the Finance of Reuters” – period 2000- (first time awarded to 2009” a Cypriot Bank) For the quality of US payments Awarded by “Best Internet “JP Morgan” – Bank, Consumer (first time awarded to a Cypriot Bank) Bank in Cyprus, 2009” and “Best Sub Custodian Bank in Cyprus, 2009” “Innovation Awarded by Award- Cyprus” “Global Finance” “Best Bank Awarded by “Money Markets 2008 in Cyprus in International Custody 2009” Awards” Awarded by “World Top 1000 World Banks Finance” 2009 2010 Rank 240 209 FT Banker magazine

2828 Contact Us 29

Contact Us

 International Business Banking Tel: +357 22 363923, Fax: +357 22 363900 e-mail: [email protected] Mailing Address: PO Box 22032, CY-1598 Nicosia, Cyprus  Nicosia International Business Centre 1 (178) Tel: +357 22 363737, Fax: +357 22 363750 e-mail: [email protected]  Nicosia International Business Centre 2 (168) Tel: +357 22 363737, Fax: +357 22 363700 e-mail: [email protected]  Limassol International Business Centre 1 (179) Tel: +357 25 815959, Fax: +357 25 815972 e-mail: [email protected]  Limassol International Business Centre 2 (158) Tel: +357 25 815959, Fax: +357 25 815637 e-mail: [email protected]

30 Contact Us cont…

 Larnaca International Business Centre Tel: +357 24 814291, Fax: +357 24 814290 e-mail: [email protected]  Paphos International Business Centre Tel: +357 26 816522, Fax: +357 26 911334 e-mail: [email protected]  International Lending Tel: +357 22 363718, Fax: +357 22 312878 e-mail: [email protected]  International Corporate Banking Unit Tel: +357 22 363903, Fax: +357 22 363900 e-mail: [email protected]  Moscow Representative Office Tel: +74959670185, Fax: +74959670186, e-mail:[email protected]

31 DISCLAIMER

Recipients of this presentation in jurisdictions outside the UK or the US should inform themselves about and observe any applicable legal requirements. This presentation is only being made available to interested parties on the basis that: (A) if they are UK persons, they are (i) persons who are "Investment Professionals", as described in Article 19 of the and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order"), (ii) persons falling within any of the categories of persons described in Article 49 of the Financial Promotion Order, (iii) persons to whom this Memorandum may otherwise lawfully be made available; (B) if they are United States persons, they are „accredited investors‟ as defined under Rule 501(a) promulgated under the United States Securities Act of 1933, as amended; or (C) are outside the United Kingdom and the United States and eligible under local law to receive this Memorandum (all such persons collectively being referred to as “Relevant Persons”). By accepting this document you represent and warrant that you are such a person. This document must not be acted on or relied on and should be returned to Marfin Popular Bank by persons who are not Relevant Persons. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Each person that receives a copy, by acceptance thereof, represents and agrees that he/she will not distribute or otherwise make available this document to any other person. This presentation contains forward-looking statements, which include comments, statements and opinions with respect to our objectives and strategies, and the results of our operations and our business, considering environment and risk conditions. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. We caution that these statements represent the Group‟s judgments and future expectations and that we have based these forward-looking statements on our current expectations and projections about future events. The risk exists that these statements may differ materially from actual future results or events and may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future Group results to differ materially from these targets. Forward-looking statements may be influenced in particular by factors such as movements in local and international securities markets, fluctuations in interest rates and exchange rates, the effects of competition in the areas in which we operate, general market, macroeconomic, governmental and regulatory trends and changes in economic, regulatory and technological conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and events. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. All forward - looking statements are based on information available to Marfin Popular Bank Public Co Ltd. on the date of this presentation and Marfin Popular Bank Public Co Ltd. assumes no obligation to update such statements, unless otherwise required by applicable law. Nothing on this presentation should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Neither this presentation nor a copy of it may be taken or transmitted into Australia, Canada or Japan, or distributed, directly or indirectly, in Australia, Canada or Japan. Any failure to comply with this restriction may constitute a violation of Australian, Canadian or Japanese securities law. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

32