OPTIMA BANK S.A.

Annual Financial Report

for the year

January 1 - December 31, 2024

The information contained in this Annual Financial Report has been translated from the original

Annual Financial Report that has been prepared in the Greek language. In the event that

differences exist between this translation and the original Greek language Annual Financial

Report, the Greek language will prevail over this document.

 
TABLE OF CONTENTS 
I.  Statement of the members of the Board of Directors ...................................................................... 1 
II.  Board of Directors’ Annual Report .................................................................................................. 3 
Board of Directors’ Annual Report for the period ended 31 December 2024 ............................................. 4 
Statement of Corporate Governance ................................................................................................... 38 
Alternative performance measurement indicators (‘APMs’) at Group level .............................................. 94 
Board of Directors’ explanatory report of Optima bank S.A. .................................................................. 95 
Optima bank’s Group Sustainability statement ..................................................................................... 98 
III.  Independent Auditor’s limited assurance Report on Sustainability Statement ................................ 246 
IV.  Independent Auditor's Report.................................................................................................... 252 
V.  Financial statements for the year ended December 31, 2024 ...................................................... 262

I. Statement of the members of the Board of Directors

Statement by the members of the Board of Directors pursuant to Article 4 par. 2 of Law

3556/2007

It is hereby certified and stated that, to the best of our knowledge:

- The annual financial statements of the société anonyme "Optima bank S.A." and its Group, for the

year ended 31 December 2024, were prepared in accordance with the applicable accounting

standards, present in a true and fair manner the assets and liabilities, the net worth and the profit

and loss account of Optima Bank SA and the undertakings included in the consolidation taken as a

whole.

- The annual report of the Board of Directors for 2024 gives a true and fair view of the development,

performance and position of Optima Bank SA, as well as of the companies included in the consolidation

taken as a whole, including a description of the main risks and uncertainties they face and was

prepared in accordance with the sustainability reporting standards referred to in 154A of Law

4548/2018 and with the specifications approved pursuant to paragraph 4 of article 8 Regulation (EU)

2020/852.

Athens, 20 March 2025

The Chairman of the Board of

Directors

The Chief Executive Officer

Executive Member of the

Board of Directors

Georgios I. Taniskidis

Dimitrios A. Kyparissis

Angelos N. Sapranidis

II. Board of Directors’ Annual Report

Board of Directors’ Annual Report for the period ended 31 December 2024

Dear shareholders,

We hereby submit the annual report of the Board of Directors for the financial year from 1/1/2024 to

31/12/2024. This report briefly describes information of the Optima bank S.A. Group, financial information

aimed at providing shareholders with general information on the financial situation and results, the overall

course and the changes that occurred during the financial year (1/1/2024 to 31/12/2024), as well as significant

events that took place and their impact on the financial statements of the year. It also describes the main

risks and uncertainties that the Group and the Bank may face in the future and lists the most important

transactions concluded between the Bank and its related parties.

International environment | 2024

Despite the successive crises (wars, extreme weather events and the largest pandemic of the 21st century),

the global economy is showing remarkable resilience. The immediate consequences of the crises have been

mitigated, with governments and monetary authorities having to take unprecedented measures to address the

crises in energy, public health, and supply chains, yet the effects regarding prices, income and public finances

remain.

Global GDP is estimated to have slowed marginally in 2024 but to remain at satisfactory levels, while inflation

continued to decelerate in the course of 2024, as a result of the restrictive monetary policy and the gradual

fight against the effects of the energy crisis. Overall, global GDP is estimated by the IMF (October 2024) to

have increased by 3.2% per year in 2024, up from 3.3% in 2023, and is projected to remain at this level also

in 2025 (3.2%). Major economies in 2024 experienced heterogeneity in GDP developments, as advanced

economies are estimated to have accelerated, while emerging and developing economies have slowed down.

According to IMF estimates, growth for 2024 as a whole accelerated slightly in advanced economies to 1.8%

from 1.7% in 2023, as the US economy slowed less than initially projected and the UK recovery was stronger

than projected

. Japan’s economy slowed significantly, while Germany’s economy is estimated to have

recorded zero growth for the year as a whole, acting as a drag on euro area GDP. In emerging and developing

economies as a whole, GDP growth is estimated to have slowed to 4.2% in 2024 from 4.4% in 2023, mainly

due to lower growth in China and India. Real GDP growth for 2025 is expected, according to the IMF, to remain

Source: Monetary Policy - Interim Report 2024, (December 2024), Bank of Greece

stable and to stand at 1.8% for advanced economies in 2025, and at 4.2% for emerging and developing

economies

Global inflation, after having been estimated to have declined to 5.8% in 2024, from 6.7% in 2023, is

expected to decline further to 4.3% in 2025 according to the IMF (October 2024). According to estimates in

emerging and developing economies, inflation remained high at 7.9% in 2024, slightly down from 8.1% in

2023. In advanced economies, where central banks took decisive action, it is estimated to have declined to

2.6% in 2024 and to reach 2.0% in 2025. Inflation fell significantly in 2024, with goods inflation close to zero,

while services inflation remains high, with monetary authorities in many economies in the process of lowering

key interest rates. For 2025, amid uncertainty mainly about international trade, a further decline in advanced

economies’ inflation, stronger real incomes and a change in economic policy are expected, with fiscal policy

tightening and monetary policy easing

In the United States, GDP increased by 3.0% in the second quarter of 2024 from 1.6% in the first quarter

of 2024. This improvement was driven mainly by strong private consumption, due to declining inflation and

rising real incomes, and investment. In the third quarter of 2024 growth declined slightly to 2.8%, mainly

driven by a decline in private inventories and residential investment. Annual CPI inflation increased to 2.7%

in November 2024, after six months of decline leading to 2.4% in September 2024, its lowest level since

February 2021. Further disinflation is expected, but at a slow pace. For the whole of 2024, according to the

IMF forecast (October 2024), GDP growth for the United States is estimated at 2.8%, supported by growth in

real wages, consumption and investment, while in 2025 it is expected to decline to 2.2%, due to a weakening

labour market. More generally, in the US, growth is expected to benefit from the commitment to extend the

tax breaks decided in 2017, while geopolitical tensions in the Middle East and trade disputes, combined with

uncertainty due to possible changes in the new US leadership’s international trade policy, appear to have a

downward effect

In China, the economic slowdown is expected to continue in 2025, as GDP growth is estimated to slow down

to 4.5%, from 4.8% in 2024

. The recovery in industrial production and exports does not seem to be able to

compensate for the weakness in private consumption, which is weighed down by the correction in the real

estate sector.

Source: Monetary Policy - Interim Report 2024, (December 2024), Bank of Greece

In Japan, the agreement in early 2024 to increase wages annually by more than 5% contributed to the

temporary rise in wages in June and July 2024, against successive reductions since March 2022. Wage

increases have supported private consumption since the second half of 2024, partly offsetting the impact of

restrictive fiscal and monetary policies. However, in August and September wages declined again, amid

inflationary pressures, while in October they remained stable. According to the IMF (October 2024), growth is

estimated to have declined to 0.3% in 2024, from 1.7% in 2023, due to temporary disruptions in the

automotive industry and the downturn in tourism, and to strengthen to 1.1% in 2025, reflecting rising wages

and consumption

In the United Kingdom, after contracting in the second half of 2023, GDP grew at a decelerating pace in the

course of 2024, by 0.7% in the first quarter, 0.5% in the second quarter and 0.1% in the third quarter (quarter

on quarter), as a result of the recovery in business investment and consumer spending. The easing of monetary

policy is expected to further boost business investment in the coming quarters. Based on the IMF forecast

(October 2024), GDP growth will strengthen to 1.1% in 2024 and 1.5% in 2025, from 0.3% in 2023. The

factors driving this increase are stronger investment and consumption amid lower inflation and more

favourable financial conditions. Annual consumer price index (CPI) inflation remained stable at 3.8% in

February and March 2024, having declined markedly from high levels in 2023. Services inflation increased in

August and declined in September. In October, it rose slightly, driving inflation to 3.3%. According to the IMF

(October 2024), inflation is expected to be 3.1% for 2024 and 2.4% for 2025. The unemployment rate declined

to 4.0% in August 2024, but reached 4.3% in September due to an increase in short-term unemployment

The Eurozone economy rebounded in 2024 with resilience, driven mainly by the energy crisis and geopolitical

developments. In the first half of 2024, the improvement in foreign demand and international trade led to GDP

growing at an accelerated pace in the third quarter (0.4% quarter on quarter)

, supported by a recovery in

domestic demand. While services supported growth, industry contributed negatively. The labour market

remains resilient, but employment growth is declining as there are fewer job vacancies. Employment growth

was low in 2024, standing at 0.1% in the second quarter and 0.2% in the third quarter, and is projected by

Eurosystem staff (December 2024) to be 0.8% in 2024 and 0.4% in 2025, compared with 1.4% in 2023. The

unemployment rate stood at a historical low of 6.4% in 2024 and is expected to be around the same level of

6.5% in 2025. In the Eurosystem staff baseline scenario (December 2024), GDP is estimated to have increased

to 0.9% for 2024, from 0.5% in 2023, mainly on account of improving foreign demand and international trade.

It is projected to increase further to 1.1% in 2025, supported by rising real incomes, stronger external demand

and weakening monetary policy effects

Inflation in the euro area continues to decelerate. Following its expected temporary increase in the fourth

quarter of 2024, it is estimated to gradually decline to below 2.0% in 2026. According to the Eurosystem staff

forecasts (December 2024), inflation will be 2.4% in 2024 and 2.1% in 2025, from 5.4% in 2023. The easing

of pressures stemming from labour costs, as well as the unwinding of secondary pressures stemming from the

energy crisis and the pandemic, will contribute to this decline in inflation. The disinflation in the euro area is

expected to continue, but to be higher than overall inflation

Greek Economy |2024

The Greek economy continued to grow at a satisfactory pace in 2024, despite international geopolitical

turbulence and natural disasters, outpacing the euro area growth rate. Growth was mainly driven by private

consumption, exports of services and investment, while exports of goods contributed negatively. Headline

inflation in the course of 2024 de-escalated, but nevertheless remained above the euro area, as persistently

high services inflation limited its de-escalation. As regards the labour market, employment continues to show

positive rates of change in 2024, unemployment is declining further, but job vacancies are increasing.

The fiscal policy pursued in recent years by the Greek economy and efforts to combat tax evasion seem to

pay off, as high primary surpluses are achieved without the need for restrictive measures leading to the

reduction of public debt as a percentage of GDP. Risks to public debt sustainability appear to be contained

over the medium term, subject to a commitment to fiscal targets and an efficient use of European resources.

However, in the longer term, there is increased uncertainty, as the gradual refinancing of debt obligations will

increase the exposure of the Greek State to interest rate and market risk, which eliminates the scope for fiscal

easing.

The Greek economy should continue with commitment to a fiscal path within the framework of European rules

and to further strengthen fiscal sustainability in the long term. At the same time, reforms should be pursued,

the extroversion of the economy strengthened and the use of NextGeneration EU (NGEU) resources

accelerated, in order to boost the productivity and growth rates of the Greek economy.

Source: Monetary Policy - Interim Report 2024, (December 2024), Bank of Greece