According to International Financial Reporting Standards (IFRS)

- Strong increase in Net Profit by 150%, despite increase in provisions by 149%
- Substantial rise of Total Operating Income by 22.9%, based on remarkable growth in Retail Banking of 21%
- Effective Cost Containment policy, decline of operating expenses by 1,8%
- Sustained Capital Adequacy with Tier 1 ratio at 16,4%

ATEbank has achieved significant growth in profitability in the first 9-months of 2005 compared to the respective period of 2004, due to increases both in interest income and non-interest income but also due to the curtailment of operating expenses. In particular, consolidated profits after tax and minority interest in 9M 05 increased by 150.02% versus the corresponding period in the previous year, and reached the level of Euro78.8 million. Net interest income increased by 25.4% reaching Euro449.1 million. It should be noted that net interest income includes non-recurring income of Euro60 million that was recognised pursuant to the restructuring of loans under the law 3259/04 on "Panotokia". On a recurrent basis, net interest income increased by 8.6% reaching Euro389.1 million. The Net Interest Margin (net interest income over average interest earning assets) stood at 3,34% on a non-recurrent basis and 2.95% on a recurrent. Non-interest income reached Euro141.7 million, showing an increase of 15.7% versus the corresponding period in the previous year. On a recurrent basis, non-interest income increased by 23.9% reaching Euro151.7 million. As a result, operating income increased by 22.9% to Euro590.8 million on a reported basis. On the other hand, the decline of operating costs contributed significantly to the Group's growing operating result. Operating expenses continued, for a third continuous quarter, their downward course reaching Euro361.2 million, a decrease of 1,8% compared with 30 September 2004. This trend reflects the effectiveness of the cost containment policy that is being implemented throughout the ATEbank Group of companies. As a result, the Group cost income ratio was 61.1% in the first nine months of the year, compared to 76.5% in the first nine months of 2004. On a recurrent basis cost income ratio for 9M 05 was 66.4%. Total lending at end September 2005 was slightly lower compared to 30 September 2004 at Euro12.0 billion. However, this was essentially due to the write-offs of loans under the "Panotokia law". If adjusted the underlying expansion of the loan book would be 3.91%. The slow growth rate can be attributed to three main reasons: the occupation of a significant percentage of the employees of the branch network for the exercise of the Panotokia Law, the employee union strike in June 2005 and the seasonality that characterizes some of the business sectors of the bank, primarily the agricultural and the public sector . However, we have to note that credit expansion in some areas was strong. Household loan portfolio as of 30 September 2005 increased by 21% compared to 30 September 2004 reaching Euro3.1 billion. The combination of new retail products combined with aggressive marketing campaigns which have been introduced since July 2005 have resulted in a remarkable increase in new disbursements. Average mortgage lending new disbursements have gone up in the last quarter by more than 65% compared to first half of 2005 and more than 85% compared to the average of the previous year. The strategy of the bank is to continue the aggressive approach to household customers and to expand this policy to the SMEs sector as well. The continuous increase of the household segment as a percentage of the total loan portfolio (25.5% in 9M05 compared to 20% in 9M04) signifies the efforts of ATEbank to expand further its activities in sectors which can produce relatively higher returns both through interest as well as fees and commissions income (retail banking net commission income increased by 61% y-o-y). As a result of the Euro705 million of write-offs during the y-o-y period pursuant to the restructuring of loans under the Panotokia law, the quality of the Bank?s loan book has improved, with the total NPL ratio dropping from 22.6% as of 30 September 2004 to 18.9% as of 30 September 2005. At the same time, however, the extensive write-offs affected negatively the provisioning coverage ratio which decreased from 70.8% as of 30 Sep 2004 to 58.3% as of 30 September 2005. It has to be noted though that the aforementioned provisioning coverage is supplemented by the collateral coverage of NPLs which is estimated to approximately 40-50% of the on-balance sheet NPLs. Impairment losses on loans amounted to Euro112.5 million in the first nine months of 2005, compared to Euro45.3 million in the corresponding period in 2004. However, it should be noted that at least Euro50.0 million of these provisions were undertaken pursuant to the aforementioned restructuring of loans under the Panotokia law. Customer deposits increased by 3.8% y-o-y at Euro16.8 billion, resulting in a loans to deposits ratio of 71.7%. Such a ratio together with the comparatively low cost of funding (1.17%) is a significant advantage which the bank will utilize in order to foster growth and gain market shares in high competition sectors. The decrease in operating cost coupled with the significant increase in revenues both from interest and non-interest sources led to growth in net profits that reached Euro83.0 million. Annualised EPS in the first nine months of 2005 was Euro 0.14. Based on the net profit for the 9M 2005, the Return on average Assets stood at 0.56%, while the Return on average Equity was 13.4%. If adjusted for the pro-forma Euro1.25 billion share capital increase, ROE was 7.66%. ATEbank sustains, after the capital increase in June 2005, a robust capital adequacy. At the end of September 2005, the estimated Total BIS Ratio stood at 18.1% and the Tier I Ratio reached 16.4%. The turnaround of almost all of the companies in the ATEbank Group into profitability and the sustainability of the Bank?s profits are the result of an intensive effort that is being made throughout the Group at an operational and organizational level. ATEbank, within the context of its expansive market development policy, has already established the joint venture in mutual funds with Edmond de Rothschild Asset Management and is promoting similar actions with major international organizations in the areas of credit cards and asset management. ATEbank's management is constantly examining ways to improve customer services, raise employees' productivity and satisfaction, enhance the Group's value and improve shareholders' return.