| |  | UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 20-F |  | 
| |  | ------------------------------------------------------------------------------- |  | 

|
|

|(Mark One) |                                                                                                                                 
|---------- | --------------------------------------------------------------------------------------------------------------------------------
|o          | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934                                  
|OR         |                                                                                                                                 
|ý          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2007
|OR         |                                                                                                                                 
|o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                        
|OR         |                                                                                                                                 
|o          | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                     

Date of event requiring this shell company report

For the transition period from
 to

Commission file number 001-14960

|EQNIKH TRAPEZA THS
ELLADOS A.E. (Exact name of
Registrant as specified in its charter)
|--------------------------------------------------------------------------------------
|NATIONAL BANK OF GREECE S.A. (Translation of Registrant's Name into English)          
|THE HELLENIC REPUBLIC (Jurisdiction of incorporation or organization)                 
|86 Eolou Street
10232 Athens, Greece(Address of principal executive offices)          

Securities
registered or to be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Name of each exchange on which registeredAmerican Depositary Shares

New York Stock ExchangeOrdinary Shares

New York Stock Exchange*


*
Not for trading but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.

Securities
registered or to be registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:

None

Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Securities Exchange Act of 1934:

None

Number
of outstanding shares of each of the Registrant's classes of capital or common stock as at December 31, 2007, the close of the period covered by the annual report:

477,198,461
Ordinary shares of nominal value €5.00 per share

Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes
ý        No o

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.

Yes
o        No ý

NoteChecking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
from their obligations under those Sections.

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes
ý        No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer
and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

Large
accelerated filer ý        Accelerated filer o        Non-accelerated filer
o

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP
ý        International Financial Reporting Standards as issued by the International Accounting Standards Board
o        Other o

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17
o        Item 18 o

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes
o        No ý



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TABLE OF CONTENTS

|                                                                                                                            |  |                                                                              |  | Page
|--------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------- |  | ----
|Introduction                                                                                                                |  | 3                                                                           
|PART I                                                                                                                      |  | 6                                                                           
|Item 1                                                                                                                      |  | Identity of Directors, Senior Management and Advisers                        |  | 6   
|Item 2                                                                                                                      |  | Offer Statistics and Expected Timetable                                      |  | 6   
|Item 3                                                                                                                      |  | Key Information                                                              |  | 6   
|Item 4                                                                                                                      |  | Information on the Company                                                   |  | 20  
|Item 4A                                                                                                                     |  | Unresolved Staff Comments                                                    |  | 108 
|Item 5                                                                                                                      |  | Operating and Financial Review and Prospects                                 |  | 108 
|Item 6                                                                                                                      |  | Directors, Senior Management and Employees                                   |  | 133 
|Item 7                                                                                                                      |  | Major Shareholders and Related Party Transactions                            |  | 147 
|Item 8                                                                                                                      |  | Financial Information                                                        |  | 148 
|Item 9                                                                                                                      |  | The Offer and Listing                                                        |  | 149 
|Item 10                                                                                                                     |  | Additional Information                                                       |  | 159 
|Item 11                                                                                                                     |  | Quantitative and Qualitative Disclosures About Market Risk                   |  | 171 
|Item 12                                                                                                                     |  | Description of Securities Other than Equity Securities                       |  | 181 
|PART II                                                                                                                     |  | 182                                                                         
|Item 13                                                                                                                     |  | Defaults, Dividend Arrearages and Delinquencies                              |  | 182 
|Item 14                                                                                                                     |  | Material Modifications to the Rights of Security Holders and Use of Proceeds |  | 182 
|Item 15                                                                                                                     |  | Controls and Procedures                                                      |  | 183 
|Item 16A                                                                                                                    |  | Audit Committee Financial Expert                                             |  | 186 
|Item 16B                                                                                                                    |  | Code of Ethics                                                               |  | 187 
|Item 16C                                                                                                                    |  | Principal Accountant Fees and Services                                       |  | 187 
|Item 16D                                                                                                                    |  | Exemptions from the Listing Standards for Audit Committees                   |  | 188 
|Item 16E                                                                                                                    |  | Purchases of Equity Securities by the Issuer and Affiliated Purchasers       |  | 188 
|PART III                                                                                                                    |  | 190                                                                         
|Item 17                                                                                                                     |  | Financial Statements                                                         |  | 190 
|Item 18                                                                                                                     |  | Financial Statements                                                         |  | 190 
|Item 19                                                                                                                     |  | Exhibits                                                                     |  | 190 
|CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2006 AND 2007 AND FOR THE YEARS ENDED DECEMBER 31, 2005, 2006 AND 2007 |  | F-1                                                                         
|INDEX TO FINANCIAL STATEMENTS                                                                                               |  | F-2                                                                         
|REPORT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTANTS                                                               |  | F-3                                                                         
|Consolidated Balance Sheets                                                                                                 |  | F-4                                                                         
|Consolidated Statements of Income and Comprehensive Income                                                                  |  | F-6                                                                         
|Consolidated Statements of Changes in Shareholders' Equity                                                                  |  | F-8                                                                         
|Consolidated Statements of Cash Flows                                                                                       |  | F-9                                                                         
|Notes to Consolidated Financial Statements                                                                                  |  | F-11                                                                        

2

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INTRODUCTION

Information Regarding National Bank of Greece S.A. and the National Bank of Greece Group

Historically, Greek law prohibited banks from engaging directly in financial service activities outside their traditional deposit and loan functions. Therefore,
specialized financial institutions were established in Greece, each for the provision of a particular type of financial service. A Greek bank that sought to provide multiple financial services to its
customers would establish several subsidiaries, each a specialized institution within the bank's integrated group of diverse financial services companies. As a consequence of this historical practice,
the Greek financial services sector today is characterized by a group of specialized companies established around a principal bank. National Bank of Greece S.A. is such a principal bank, around
which our consolidated subsidiaries are organized.

All
references in this annual report on Form 20-F (the "Annual Report") to the "Bank" or "NBG" are to National Bank of Greece S.A. without its subsidiaries. The
Bank and its consolidated subsidiaries, collectively, are referred to in this Annual Report as the "NBG Group" or the "Group". All references in this Annual Report to "we", "us" or "our" are, as the
context requires, to the Bank or to the NBG Group as a whole.

Currency and Financial Statement Presentation

The NBG Group operates in many countries and earns money and makes payments in many different currencies. All references to "$", "U.S. dollars", "USD" or
"US$" are to United States dollars and all references to "€", "EUR" or to "euro" are to the lawful currency of the member states of the European Union that have adopted the single
currency in accordance with the Treaty Establishing the European Community, as amended by the Treaty on European Union and the Treaty of Amsterdam. All references to "BGN" are to Bulgarian leva, all
references to "£" or "GBP" are to British pounds, all references to "CSD" are to Serbian dinars, all references to "CYP"
are to Cyprus pounds, all references to "JPY" are to Japanese YEN, all references to "MKD" are to Macedonian dinars, all references to "RON" are to Romanian lei, all references to "TRY" are to Turkish
new lira and all references to "ZAR" are to South African rand.

Solely
for convenience, this Annual Report contains translations of certain euro amounts into U.S. dollars at specified rates. These are simply convenience translations and you
should not expect that a euro amount actually represents a stated U.S. dollar amount or that it could be converted into U.S. dollars at the rate suggested, or any other rate. In this
Annual Report, the translations of euro amounts into U.S. dollars, where indicated, have been made at the noon buying rate for cable transfers of euro into U.S. dollars of
US$1.00 = €0.6423, as reported by the Federal Reserve Bank of New York (the "Noon Buying Rate") on April 30, 2008. Similar convenience translations, such as translations
of South African rand, Cyprus pounds, Macedonian dinars, Bulgarian leva, Romanian lei, Serbian dinar and Turkish new lira into U.S. dollars, where indicated, have been made at the respective
rates of South African rand 7.5685 per US$1.00, Macedonian dinars 39.65 per US$1.00, Bulgarian leva 1.2586 per US$1.00, Romanian lei 2.3674 per US$1.00, Serbian dinars 51.9137 per US$1.00 and Turkish
new lira 1.2889 per US$1.00. These are the respective Noon Buying Rates for the stated currencies on April 30, 2008.

3

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The
table below sets out the highest and lowest exchange rate between the euro and the U.S. dollar, for each of the completed six months preceding the filing of this Annual
Report:

|               |  | US$1.00=
Euro
|-------------- |  | -------------
|
|
|November, 2007 |  | 0.6928       
|December, 2007 |  | 0.6972       
|January, 2008  |  | 0.6862       
|February, 2008 |  | 0.6899       
|March, 2008    |  | 0.6581       
|April, 2008    |  | 0.6423       

The following table sets forth the average exchange rates between the euro and the U.S. dollar for each of the five years ended
December 31, 2003, 2004, 2005, 2006 and 2007 and for the current annual period through April 30, 2008. The following exchange rates have been calculated using the average of the Noon
Buying Rates for euro on the last day of each month during each of the past five annual periods.

|Annual Period |  | US$1.00=
Euro
|------------- |  | -------------
|2003          |  | 0.8833       
|2004          |  | 0.8039       
|2005          |  | 0.8033       
|2006          |  | 0.7960       
|2007          |  | 0.7297       
|2008          |  | 0.6578       

Special Note Regarding Forward-Looking Statements

This Annual Report includes forward-looking statements. Such items in this Annual Report include, but are not limited to, statements under Item 3.D,
"Risk Factors", Item 4.B, "Business Overview" and Item 5,
"Operating and Financial Review and Prospects". Such statements can be generally identified by the use of terms such as "believes", "expects", "may",
"will", "should", "would", "could", "plans", "anticipates" and comparable terms and the negatives of such terms. By their nature, forward-looking statements involve risk and uncertainty, and the
factors described in the context of such forward-looking statements in this Annual Report could cause actual results and developments to differ materially from those expressed in or implied by such
forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to risks,
uncertainties and assumptions about the Group, including, among other things:



4

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We
undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed in this Annual Report might not occur. Any statements regarding past trends or activities should not be taken as a representation
that such trends or activities will continue in the future.

Readers
are cautioned not to place undue reliance on such forward-looking statements, which are based on facts known to us only as of the date of this Annual Report.

5

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PART I

ITEM 1    IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2    OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3    KEY INFORMATION

A.    Selected Financial Data

The following information as at, and for the years ended, December 31, 2003 through 2007 has been derived from the consolidated financial statements of the
Group. These financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") and have been audited by our principal auditors. The
selected financial and operating data should be read in conjunction with Item 5, "Operating and Financial Review and Prospects", in this Annual
Report and with the Group's audited U.S. GAAP financial statements and the notes thereto as at December 31, 2006 and 2007 and for the years ended December 31, 2005, 2006 and 2007
(the "U.S. GAAP Financial Statements") included elsewhere in this Annual Report.

|                                                    |                                                                       | Year ended December 31, |          
|--------------------------------------------------- | --------------------------------------------------------------------- | ----------------------- | ---------
|
|
|CONSOLIDATED STATEMENT OF INCOME DATA               |                                                                       |                         |          
|Continuing operations                               |                                                                       |                         |          
|                                                    | Total interest income                                                 |                         | 1,995,487
|                                                    | Total interest expense                                                |                         | (777,138 
|                                                    |                                                                       |                         |          
|                                                    | Net interest income                                                   |                         | 1,218,349
|                                                    | Allowance for loan losses                                             |                         | (139,061 
|Net interest income after allowance for loan losses |                                                                       | 1,079,288               |          
|Non-interest Income                                 |                                                                       |                         |          
|                                                    | Credit card fees                                                      |                         | 64,561   
|                                                    | Service charges on deposit accounts                                   |                         | 42,027   
|                                                    | Other fees and commissions                                            |                         | 324,158  
|                                                    | Net trading profit/(loss)                                             |                         | 107,780  
|                                                    | Net realized gains/(losses) on sales of available-for-sale securities |                         | (98,046  
|                                                    | Equity in earnings/(losses) of investees                              |                         | 21,748   
|                                                    | Income from insurance operations                                      |                         | 561,231  
|                                                    | Other income                                                          |                         | 250,375  
|                                                    |                                                                       |                         |          
|                                                    | Total non-interest income                                             |                         | 1,273,834
|                                                    |                                                                       |                         |          

6

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|
|

|                        |                                                                                | Year ended December 31,
|----------------------- | ------------------------------------------------------------------------------ | -----------------------
|
|
|Non-Interest Expense    |                                                                                |                        
|                        | Salaries and employee benefits and voluntary retirement schemes                |                        
|                        | Depreciation of premises and equipment                                         |                        
|                        | Amortization of intangible assets                                              |                        
|                        | Other than temporary impairment in available-for-sale securities               |                        
|                        | Impairment of goodwill                                                         |                        
|                        | Minority Interest, net of tax                                                  |                        
|                        | Insurance claims, reserves movements, commissions and reinsurance premia ceded |                        
|                        | Summary other(3)                                                               |                        
|                        |                                                                                |                        
|                        | Total non-interest expense                                                     |                        
|                        |                                                                                |                        
|                        | Income from continuing operations before income tax expense                    |                        
|Discontinued operations |                                                                                |                        
|                        | Income from discontinued operations before income tax expense                  |                        
|                        | Net income                                                                     |                        
|                        | Net income per share from continuing operations                                |                        
|                        | Basic(4) EPSIncome from continuing operations                                 |                        
|                        | Basic(4) EPSNet income                                                        |                        
|                        | Diluted(4) EPSIncome from continuing operations                               |                        
|                        | Diluted(4) EPSNet income                                                      |                        
|                        | Cash dividends declared per share(5)                                           |                        

The number of shares as adjusted to reflect changes in capital is presented in the following table:

|                                                                                                            |  | Weighted average number of shares outstanding
Year ended December 31,
|----------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------
|
|As reported in previous years                                                                               |  | 317,317,496                                                          
|As restated based on the share capital increase with pre-emptive rights in 2006 and stock dividends of 2007 |  | 357,934,736                                                          

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7

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|                                     |                                                                                                                                                                | Year ended December 31, |           
|------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | ----------
|
|
|CONSOLIDATED BALANCE SHEET DATA      |                                                                                                                                                                |                         |           
|ASSETS                               |                                                                                                                                                                |                         |           
|                                     | Cash and due from banks                                                                                                                                        |                         | 789,920   
|                                     | Deposits with central bank                                                                                                                                     |                         | 530,424   
|                                     | Securities purchased under agreements to resell                                                                                                                |                         | 3,458,270 
|                                     | Interest bearing deposits with banks                                                                                                                           |                         | 5,068,936 
|                                     | Money market investments                                                                                                                                       |                         | 92,955    
|                                     | Trading assets (includes EUR 1,436,025 thousand and EUR 1,899,623 thousand in 2006 and 2007, respectively, pledged as collateral)                              |                         | 13,788,871
|                                     | Financial instruments marked to market through the profit and loss                                                                                             |                         |          
|                                     | Securities:                                                                                                                                                    |                         |           
|                                     | Available-for-sale securities, at fair value (includes EUR 1,022,643 thousand and EUR 1,239,729 thousand in 2006 and 2007 respectively, pledged as collateral) |                         | 5,514,615 
|                                     | Loans                                                                                                                                                          |                         | 22,933,040
|                                     | Less: Allowance for loan losses                                                                                                                                |                         | (1,047,493
|                                     |                                                                                                                                                                |                         |           
|                                     | Net loans                                                                                                                                                      |                         | 21,885,547
|                                     | Assets classified as held for sale(3)                                                                                                                          |                         |          
|                                     | Summary other assets(4)                                                                                                                                        |                         | 4,198,361 
|                                     |                                                                                                                                                                |                         |           
|                                     | Total assets                                                                                                                                                   |                         | 55,327,899
|                                     |                                                                                                                                                                |                         |           
|LIABILITIES AND SHAREHOLDERS' EQUITY |                                                                                                                                                                |                         |           
|                                     | Deposits                                                                                                                                                       |                         | 42,049,749
|                                     | Securities sold under agreements to repurchase                                                                                                                 |                         | 6,078,897 
|                                     | Long-term debt                                                                                                                                                 |                         | 1,171,467 
|                                     | Liabilities classified as held for sale(5)                                                                                                                     |                         |          
|                                     | Summary other liabilities(6)                                                                                                                                   |                         | 4,637,331 
|                                     |                                                                                                                                                                |                         |           
|                                     | Total liabilities                                                                                                                                              |                         | 53,937,444
|SHAREHOLDERS' EQUITY                 |                                                                                                                                                                |                         |           
|                                     | Common stock                                                                                                                                                   |                         | 1,147,761 
|                                     | Additional paid-in capital                                                                                                                                     |                         | 379,450   
|                                     | Accumulated other comprehensive income/(loss)                                                                                                                  |                         | (2,908    
|                                     | Treasury stock, at cost (882,560 and 502,500 shares at 2006 and 2007, respectively)                                                                            |                         | (348,790  
|                                     | Accumulated surplus                                                                                                                                            |                         | 214,942   
|                                     |                                                                                                                                                                |                         |           
|                                     | Total shareholders' equity                                                                                                                                     |                         | 1,390,455 
|                                     |                                                                                                                                                                |                         |           
|                                     | Total liabilities and shareholders' equity                                                                                                                     |                         | 55,327,899
|                                     |                                                                                                                                                                |                         |           

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8

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SELECTED FINANCIAL RATIOS

|                                    |  | Year ended December 31,
|----------------------------------- |  | -----------------------
|
|
|Return on assets(1)                 |  | 0.19                   
|Return on equity(2)                 |  | 7.66                   
|Average equity to average assets(3) |  | 2.46                   

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For exchange rate information, see "IntroductionCurrency and Financial Statement
Presentation".

Dividends

Under Greek law, the Bank can pay dividends out of:



Before
paying dividends, the Bank, in accordance with our Articles of Association and Greek corporate law (codified law 2190/20), must allocate a minimum of 5% (up to a maximum of 20%)
of the Bank's net profits to an ordinary reserve until this reserve equals at least half of the Bank's share capital. Under the Bank's Articles of Association and Greek corporate law, and subject to
the limitations described above and below, each year the Bank is required to pay in cash a minimum dividend out of the net profits for the year, if any, equal to 35% of the net profits of the Bank on
a standalone basis for the year (after the deduction of statutory reserves and any profits resulting from the sale of equity participations that represent at least 20% of the paid-up share
capital of a subsidiary company in which the Bank has held an equity participation for at least ten years). According to Greek law 3460/2006, unrealized profits from marking securities to market will
be deducted from net profits in order to determine the minimum dividend. A majority of the Bank's shareholders representing at least 65% of the paid-up share capital may vote to waive this
cash dividend. The remaining undistributed dividend must then be transferred to a special reserve which, within four years following the Bank's general meeting of shareholders (the "General Meeting of
Shareholders"), must be distributed in the

9

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form
of a stock dividend. However, a majority representing 70% of the Bank's paid-up capital may vote to waive the distribution of either cash or stock dividend or both.

Calculation
of all such amounts is based on the financial statements of the Bank prepared in accordance with IFRS.

Any
distribution of distributable profits in excess of the required dividend payments described above must be approved by a General Meeting of Shareholders, with ordinary quorum and
majority voting requirements, following a proposal of the Bank's board of directors (which we refer to in this Annual Report as the "Board of Directors" or the "Board"). No distribution can be
effected if, on the closing date of the last financial year, the total shareholders' equity is, or will become after that distribution, lower than the total of the Bank's share capital and the
reserves, the distribution of which is prohibited by Greek law or the Bank's Articles of Association. In any event, dividends may not exceed net profits for the last financial year, as increased by
distributable reserves, the distribution of which is permitted as resolved at the General Meeting of Shareholders, and profits carried forward from previous years, and as decreased by any loss in the
previous financial year and any compulsory reserves required by law or the Bank's Articles of Association.

Once
approved, dividends must be paid to shareholders within two months of the date on which the Bank's annual financial statements are approved. Normally, dividends are declared and
paid in the year subsequent to the reporting period. Dividends are forfeited to the Hellenic Republic if they are not claimed by shareholders within five years following December 31 of the year
in which they were declared.

On
May 18, 2004, at the Bank's General Meeting of Shareholders, the Bank's shareholders approved the distribution of a cash dividend in the amount of €0.65 per
share with respect to the year ended December 31, 2003. On May 17, 2005, at the Bank's General Meeting of Shareholders, the Bank's shareholders approved the distribution of a cash
dividend in the amount of €0.60 per share with respect to the year ended December 31, 2004. On April 27, 2006, at the Bank's General Meeting of Shareholders, the Bank's
shareholders approved the distribution of a cash dividend in the amount of €1.00 per share with respect to the year ended December 31, 2005. On May 25, 2007 at the Bank's
General Meeting of Shareholders, the Bank's shareholders approved the distribution of a cash dividend in the amount of €1.00 per share with respect to the year ended
December 31, 2006. On April 17, 2008, the Bank's General Meeting of Shareholders approved the distribution of a dividend in the amount of €1.40 per share with respect to
the year ended December 31, 2007. All shareholders received €0.40 in cash. The remaining €1.00 was received in the form of shares at a rate of 4 to 100 as
approved at the Bank's repeat General Meeting of Shareholders on May 15, 2008. Following the decision of distributing €1.00 as scrip dividend and this share capital increase,
common stock increased by €95,339 thousand and the accumulated surplus decreased by €103,430 thousand, while share capital amounts to
€2,481,331 thousand divided to 496,266,299 shares with a nominal value of €5.00 each.

The
following table sets forth the actual dividends declared by the Bank for the corresponding periods and the dividends as a percentage of previous year's net income, based on IFRS net
income. For financial years up to and including the year ended December 31, 2004, dividends declared by the

10

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Bank
in the following year are based on Greek GAAP, whereas for the financial years ended December 31, 2005 and onwards, dividends are based on IFRS.

|Year Ended December 31,     |  | Amount of dividends per share, in EUR |  | Amount of dividends per share, in US$(1) |  | Number of shares entitled to dividend |  | % of previous year's net income distributed
|--------------------------- |  | ------------------------------------- |  | ---------------------------------------- |  | ------------------------------------- |  | -------------------------------------------
|2004                        |  | 0.65                                  |  | 1.01                                     |  | 255,050,388                           |  | 40.6                                       
|2005                        |  | 0.60                                  |  | 0.93                                     |  | 330,118,200                           |  | 48.2                                       
|2006                        |  | 1.00                                  |  | 1.56                                     |  | 339,234,412                           |  | 44.4                                       
|2007                        |  | 1.00                                  |  | 1.56                                     |  | 475,287,219                           |  | 44.6                                       
|2008 (through May 15, 2008) |  | 1.40                                  |  | 2.18                                     |  | 476,695,961                           |  | 43.3                                       

---

The Bank currently expects to continue to pay dividends in accordance with the formula described above, subject to the financial condition of the
Bank, the funding needs of our investment program and other relevant considerations.

Normally,
dividends are declared and paid in the year subsequent to the reporting period. Up to and including the fiscal year ended December 31, 2005, dividends were accounted for
once declared. Beginning in 2006, the Group changed its policy and now records a liability related to the mandatory minimum dividend payment computed as 35% of the net profits for the year less
unrealized gains. The mandatory minimum dividend liability recognized in 2007 amounts to €182,587 thousand.

B.    Capitalization and Indebtedness

Not applicable.

C.    Reasons for the Offer and Use of Proceeds

Not applicable.

D.    Risk Factors

General

If you are considering purchasing our shares or American Depositary Receipts, you should carefully read and think about all the
information contained in this document, including the risk factors set out below, prior to making any investment decision.

Risks Relating to Our Business

The state of the political and economic environment, particularly in Greece, significantly affects our performance.

For the financial year ended December 31, 2007, approximately 60.4% of our total income from continuing operations, and as of December 31, 2007,
67.1% of our gross loans were derived from our operations in Greece. As a result, the state of the Greek economy significantly affects our financial performance as well as the market price and
liquidity of the Bank's shares. To an increasing extent, our performance is affected by the economic conditions and levels of economic activity in other countries in which we operate, especially
Turkey, from which 24.9% of our total income and 17.9% of our gross loan portfolio were derived in 2007, and SEE countries from which 9.0% of our total income and 11.5% of our gross loan portfolio
were derived in 2007. Consequently, an economic slowdown, a deterioration of conditions in Greece or other adverse changes affecting the Greek economy or the economies of other countries in which we
operate, could result in, among other things, higher rates of

11

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credit
defaults on loans or declines in new borrowing, which could adversely impact our business, financial condition, cash flows and results of operations. Moreover, the political environment both in
Greece and in other countries in which we operate may be adversely affected by events outside our control, such as changes in government policies, EU Directives in the banking sector and other areas,
political instability or military action affecting Europe and/or other areas abroad and taxation and other political, economic or social developments in or affecting Greece and the countries in which
we operate or may plan to expand. Finally, global economic conditions such as the level and liquidity of the global financial and other assets markets, investor sentiment and the availability and cost
of credit may adversely affect our business, results of operations or financial condition.

Operating in Turkey carries specific macroeconomic and political risks.

As a result of our acquisition of Finansbank A.S. ("Finansbank") in August 2006, we are subject to operating risks in Turkey, including the following:



12

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We conduct significant international activities and are expanding in emerging markets.

Apart from our operations in Greece and Turkey, we have built up substantial operations in Bulgaria, Romania, the Former Yugoslav Republic of Macedonia ("FYROM"),
Serbia and other developing economies. Our international operations are exposed to the risk of adverse political, governmental or economic developments in the countries in which we operate. In
addition, most of the countries outside Greece in which we operate are emerging markets where we face particular operating risks. These factors could have a material adverse effect on our business,
financial condition and results of operations. Our international operations also expose us to foreign currency risk. A decline in the value of the currencies in which our international subsidiaries
receive their income or hold their assets relative to the value of the euro may have an adverse effect on our financial condition and results of operations.

We
are actively pursuing expansion of our international market position, principally through acquisitions in SEE, Eastern Europe and the Southeastern Mediterranean region. We are
currently evaluating a number of acquisition candidates in these regions and, consequently, we anticipate that our operations and our shareholders will increasingly be exposed to risks associated with
acquisitions generally, as well as specific risks relating to business operations in these emerging markets.

Volatility in interest rates may negatively affect our net interest income and have other adverse consequences.

Interest rates are highly sensitive to many factors beyond our control, including monetary policies and domestic and international economic and political
conditions. As with any bank, changes in market interest rates could affect the interest rates we charge on our interest-earning assets differently than the interest rates we pay on our
interest-bearing liabilities. This difference could reduce our net interest income. Since the majority of our loan portfolio effectively reprices in five years or less, rising interest rates may also
result in an increase in our allowance for loan losses if customers cannot refinance in a higher interest-rate environment. Further, an increase in interest rates may reduce the demand for
loans and our ability to originate loans. Conversely, a decrease in the general level of interest rates may adversely affect us through, among other things, increased pre-payments on our
loan and mortgage portfolio and increased competition for deposits. Likewise, a decrease in interest rates may affect our ability to issue mortgage-backed securities, securitize parts of our balance
sheet or otherwise issue debt securities.

Our lending margins may decline.

The Greek banking industry has historically enjoyed high loan margins compared to other EU member states. However, as Greece's economy converges with those of
other countries in the European Union, margins have been declining. Such a decline has been accentuated by the recent increase in time deposits, which have interest rates closer to EURIBOR/LIBOR than
those of sight deposits. In addition, the adoption of rules for the enhancement of transparency in the financial services market by the Bank of Greece and recent court judgments on consumer protection
are expected to result in lower margins with respect to consumer loans and credits for banks operating in Greece. A further decline in lending margins would have a negative impact on our results from
operations.

13

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We face significant competition from Greek and foreign banks.

Deregulation has led to increased competition in the Greek banking sector. In addition, consolidation among Greek banks has led to increased competition resulting
from the increased efficiency and greater resources of these combined entities. We also face competition from foreign banks, some of which have resources significantly greater than our own. We may not
be able to continue to compete successfully with domestic and international banks in the future.

Changes in the competitive environment in Turkey may adversely affect Finansbank's business.

Increased competition from existing competitors or from new entrants to the Turkish market could limit Finansbank's ability to grow or to maintain its market
share and could cause downward pressure on margins, which could adversely affect the Group's ability to meet its strategic objectives in Turkey. At the same time, convergence with the economies of
existing EU member states could result in decreasing interest rate levels in Turkey, which could lead to a decline in Finansbank's interest margins.

Our ability to reduce staff in Greece is limited.

Part of our strategy is to increase profitability by making our operations more efficient. Our ability to realize one component of this, reducing staff, is
limited by Greek labor laws, our company collective agreement, current employment regulation and our desire to maintain good relations with our employees. As a result, we will continue to depend on
voluntary redundancies and attrition to achieve staff reductions. We will continue to assess whether we will be able to reduce our staff. However, we may not always be successful in achieving such
reductions.

The loss of senior management may adversely affect our ability to implement our strategy.

Our current senior management team includes a number of executives that we believe contribute significant experience and expertise to our management in the
banking sectors in which we operate. The continued success of our business and our ability to execute our business strategy will depend, in large part, on the efforts of our senior management. If a
substantial portion of our senior management leaves us, our business may be materially adversely affected.

We may be unable to recruit or retain experienced and/or qualified personnel.

Our growth depends, in part, on our ability to continue to attract, retain and motivate qualified and experienced banking and management personnel. Competition in
the Greek and other SEE banking industries for personnel with relevant expertise is intense, due to the relatively limited availability of qualified individuals. To recruit qualified and experienced
employees and to minimize the possibility of their departure, we provide compensation packages consistent with evolving standards in the relevant labor markets. See Item 6.B,
"Directors, Senior Management and EmployeesCompensation". However, inability to recruit and retain qualified and
experienced personnel in Greece and SEE, or manage our current personnel successfully, could have a material adverse effect on our business, financial condition, results of operations or prospects.

We could be exposed to significant future pension and post-retirement benefit liabilities.

In common with other large companies in Greece that are, or were, in the public sector, the employees of the Bank and certain of our subsidiaries participate in
employee-managed pension schemes. The Bank and certain of our subsidiaries make significant contributions to these schemes. In addition, the Bank and several of our subsidiaries offer other
post-retirement benefit plans, including medical benefit plans. Our consolidated net liability under these plans as at December 31, 2007 was €230.2 million,
determined by reference to a number of critical assumptions that are subject to potential variation. Such variation may cause us to incur significantly increased liability in respect of

14

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these
obligations. For more information on our current obligations under pension plans and the assumptions by reference of which they are determined, please refer to Note 38 to the
U.S. GAAP financial statements for the year ended December 31, 2007, included in this Annual Report.

Following
legislation passed in April 2008, the Bank's main pension plan and the main pension branch of Ethniki Hellenic General Insurance S.A.'s ("EH") post retirement and health
plan will be incorporated into the main pension branch of the state-sponsored social security fund IKAETAM as of August 1, 2008. Pursuant to this legislation, which must be enacted
by Ministerial Decree in order to come into force, the Bank will contribute €25.5 million into IKAETAM per year for 15 years starting from December 2009.
Although the Bank has contested these payments as unfair compared to those imposed to other banks and has reserved all legal rights, it may be unsuccessful in these efforts.

In
addition, in 2005 and 2006, the Hellenic Republic passed legislation permitting bank employee auxiliary pension schemes to merge with the new Insurance Fund of Bank Employees
("ETAT"). The relevant legislation provides that, in connection with the merger of auxiliary schemes with ETAT, the relevant employer shall make a payment to ETAT solely in an amount to be determined
by an independent financial report commissioned by the Ministry of Finance pursuant to this legislation. Subsequently, in April 2006 the Bank applied under Law 3371/2005, as amended, to merge its
Auxiliary Pension Fund into ETAT. It is possible that we may have a future requirement to make a significant cash payment to ETAT in connection with the merger of the Bank's employee pension schemes
with ETAT.

The
foregoing developments, as well as future interpretations of existing laws and any future legislation regarding pensions and pension liabilities or other post-retirement
benefit obligations,
may increase the liability of the Bank or its subsidiaries with respect to pension and other post-retirement benefit plan contributions to cover actuarial or operating deficits of those
plans.

The Greek banking sector is subject to strikes.

Most of our employees belong to a union and the Greek banking industry has been subject to strikes, mainly over the issues of pensions and wages. Bank employees
throughout Greece went on strike for three days in 2007 and nine days in 2008 (up to May 15, 2008), mainly on the grounds of pension reforms proposed by the Greek Government in March 2008.
Prolonged labor unrest could have a material adverse effect on the Bank's operations in Greece.

Non-performing loans have had a negative impact on our operations and may continue to do so.

Non-performing loans represented approximately 3.0% of our total loan portfolio as at December 31, 2007. As a result of certain tax and legal
considerations, non-performing loans generally remain on our balance sheet significantly longer than for other banks in the EU. See Item 4.E, "Business
OverviewSelected Statistical DataThe Group's Treatment of Non-Performing Loans".

Our
current credit approval and monitoring procedures focus on the borrower's cash flow and ability to repay in an effort to improve the quality of our loan assets and mitigate future
allowances for loan losses. However, we cannot assure you that these credit approval and monitoring procedures will reduce the amount of provisions for loans that become non-performing in
the future. Future provisions for non-performing loans could have a materially adverse effect on our operating results. In addition, a downturn in the global economy would potentially
result in a higher proportion of non-performing loans.

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We are exposed to credit risk, market risk, liquidity risk, operational risk and insurance risk.

As a result of our activities, we are exposed to a variety of risks, among the most significant of which are credit risk, market risk, liquidity risk, operational
risk and insurance risk. Failure to control these could result in material adverse effects on our financial performance and reputation.



Deteriorating asset valuations resulting from poor market conditions may adversely affect our future earnings.

In recent years, Greece and the SEE have experienced rapid expansion in the retail and residential mortgage credit markets. An economic slowdown or increase in
real interest rates in these countries could result in an increase in non-performing loans and significant changes in the fair values of our exposures. Severe market events, as exemplified
by recent events affecting asset-backed CDO's, the US sub-prime residential mortgage market and leveraged finance, are difficult to foresee and, if they occur

16

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in
markets in which we operate, could result in us incurring significant losses. Moreover, an increase in market volatility or adverse changes in the liquidity of our assets could impair our ability
to value certain of our assets and exposures. Valuations in future periods, reflecting then-prevailing market conditions, may result in significant changes in the fair values of these
assets and exposures. In addition, the value ultimately realized by us will depend on the fair value as determined at that time and may be materially different from the current or estimated fair
value. Any of these factors could require us to recognize write-downs or realize impairment charges, any of which may adversely affect our financial condition and results of operations.

We may incur significant losses on our trading and investment activities due to market fluctuations and volatility.

We maintain trading and investment positions in debt, currency, equity and other markets. These positions could be adversely affected by volatility in financial
and other markets, creating a risk of substantial losses. Volatility can also lead to losses relating to a broad range of other trading and hedging products we use, including swaps, futures, options
and structured products. For further information on market risk exposures in those portfolios, you should refer to Item 11, "Quantitative and Qualitative Disclosures
about Market Risk".

Our hedging may not prevent losses.

If any of the variety of instruments and strategies that we use to hedge our exposure to various types of risk in our businesses is not effective, we may incur
losses. Many of our strategies are based on historical trading patterns and correlations. Unexpected market developments therefore may adversely affect the effectiveness of our hedging strategies.
Moreover, we do not hedge all of our risk exposure in all market environments or against all types of risk. In addition, the manner in which gains and losses resulting from certain ineffective hedges
are recorded may result in additional volatility in our reported earnings.

An interruption in or a breach of security in our information systems may result in lost business and other losses.

We rely on communications and information systems provided by third parties to conduct our business. Any failure or interruption or breach in security of these
systems could result in failures or interruptions in our customer relationship management, general ledger, deposit, and servicing and/or loan organization systems. We cannot provide assurances that
such failures or interruptions will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any failures or interruptions could result in a loss of customer data and
an inability to service our customers, which could have a material adverse effect on our reputation, financial condition and results of operations.

State-related entities may have an important influence on the Bank.

Although the Hellenic Republic does not directly own any of our shares, it may exercise a degree of indirect influence on us, through certain state-related
entities (primarily pension funds, most of whose boards of directors are appointed by the Hellenic Republic), which on April 30, 2008, owned shares representing approximately 16.6% of our
issued share capital. See Item 7.A, "Major Shareholders and Related Party TransactionsMajor ShareholdersState
Interests".

Our
Articles of Association do not provide any special voting rights to any class of shares or shareholders and there is no law in Greece that gives control over the Bank to the Hellenic
Republic. However, if there is not a full voting participation by all of our shareholders at a given shareholders' meeting, these state-related entities, despite holding a minority of our total
shares, may have a voting

17

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majority
at such meeting. For instance, this could allow them to influence the election of members of our Board of Directors.

Future acquisitions may result in unexpected losses.

Typically, when we acquire a banking business, we acquire all of its liabilities as well as its assets. Our acquisition procedures may fail to identify all actual
or potential liabilities of a company prior to its acquisition, and we may be unable to obtain sufficient indemnities to protect ourselves against such acquired liabilities. For example, the failure
to identify and accurately determine the level of credit risk or market risk to which an acquired bank is exposed prior to its acquisition may lead to unexpected losses following the acquisition,
which may have a significant adverse effect on our results of operations and financial condition.

Risks Relating to Our Industry

Regulation of the banking industry is changing.

Regulation of the banking industry in Greece has changed in recent years pursuant to changes in Greek law, largely to comply with applicable EU Directives. In
August 2007, the EU Directives regarding the adoption of the new Basel Capital Accord ("Basel II") were incorporated into Greek law relating to the business of credit institutions and to the capital
adequacy of investment firms and credit institutions. Following this, on August 20, 2007, the Bank of Greece issued ten Governor's Acts specifying the details for the implementation of Basel
II, which took effect from January 1, 2008. We cannot predict what regulatory changes may be imposed in the future, either as a result of regulatory initiatives in the European Union, by the
Bank of Greece or by U.S. securities regulators.

The
banking regulations in Turkey are evolving parallel to the global changes and international regulatory environment. Even though no official statements have been made, we expect the
local regulations regarding Basel II to be published within 2008; requiring banks to be Basel II standardized approach-compliant by the beginning of 2009. Adopting the Basel II
standardized approach will decrease the capital requirement for the retail loans; whereas corporate and commercial loans will be adversely affected. We cannot predict the timing for the advanced
methods of Basel II; however we have already started working on developing and implementing the models required for advanced approaches. If we are required to make additional significant provisions or
increase our reserves, as may result from potential regulatory changes, this could adversely affect our financial condition or results of operations.

Risks Relating to the Markets

Exchange rate fluctuations could have a significant impact on the value of our shares.

The market price of our shares traded on the Athens Exchange ("ATHEX") is denominated in euro. Fluctuations in the exchange rate between the euro and other
currencies may affect the value of the Bank's shares in the local currency of investors in the United States and other countries that have not adopted the euro as their currency. Additionally, cash
dividends on our shares are paid in euro and, therefore, are subject to exchange rate fluctuations when converted to an investor's local currency, including U.S. dollars.

The ATHEX is less liquid than other major exchanges.

The principal trading market for our shares is the ATHEX. The ATHEX is less liquid than major stock markets in Western Europe and the United States. As a result,
shareholders may have difficulty assessing the past performance of the shares based on our prior trading record on the ATHEX. In 2007, the average daily trading value on the ATHEX was approximately
€482 million, while in the first

18

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three
months of 2008 it was approximately €442 million. In comparison, the average daily trading value on the London Stock Exchange was approximately
€29,705 million in 2007 and approximately €20,259 million in the first three months of 2008.

As
at December 31, 2007, the aggregate market value of all shares listed on the ATHEX was approximately €195 billion. The market value of our shares listed
on the ATHEX on that date was €20.7 billion, representing approximately 10.6% of the capitalization of all companies listed on the ATHEX. We cannot make assurances about the
future liquidity of the market for our shares.

Our share price has been, and may continue to be, volatile.

The market price of our shares has been subject to volatility in the past, and could be subject to wide fluctuations in response to numerous factors, many of
which are beyond our control. These factors include the following:



The exercise of pre-emptive rights may not be available to U.S. holders of the shares and ADRs.

Under Greek law and our Articles of Association, prior to the issuance of any new shares, we must offer holders of our existing shares pre-emptive
rights to subscribe and pay for a sufficient number of shares to maintain their existing ownership percentages. These pre-emptive rights are generally transferable during the rights
trading period for the related offering and may be traded on the ATHEX.

U.S.
holders of the shares and ADRs may not be able to receive (and trade) or exercise pre-emptive rights for any such offering of shares unless a registration statement
under the Securities Act is effective with respect to such rights or an exemption from the registration requirements of the Securities Act is available. Our decision to file a registration
statement with respect to any future offering will depend on the costs and potential liabilities associated with any such registration statement, as well as the perceived benefits of enabling U.S.
holders of ordinary shares and ADRs to exercise their pre-emptive rights and any other factors we may consider appropriate at the time.

If
U.S. holders of the shares and ADRs are not able to receive (and trade) or exercise pre-emptive rights granted in respect of their shares in any rights offering by us then
they might not receive the economic benefit of such rights. In addition, their proportional ownership interests in the Bank will be diluted.

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ITEM 4    INFORMATION ON THE COMPANY

A.    History and Development of the Company

National Bank of Greece S.A. was founded in 1841 and incorporated as asociété
anonymepursuant to Greek law as published in the Greek Government Gazette number six on March 30, 1841. Our current corporate form will expire on February 27,
2053, but may be further extended by a resolution of the General Meeting of Shareholders. The Bank's headquarters and our registered office are located at 86 Eolou Street, 10232 Athens, Greece. The
telephone number of the Bank is (+30) 210 334 1000. The Bank's agent for service in the United States is Corporation Service Company, 1133 Avenue of the
Americas, Suite 3100, New York, NY 10036.

The
Bank has operated a commercial banking business for 167 years. During that time, our business has expanded to become a large, diversified financial services group that today
comprises the NBG Group. As part of our diversification, the Bank founded the Ethniki Hellenic General Insurance S.A. in 1891 and the National Mortgage Bank of Greece S.A. ("NMB") in
1927. Until the establishment of the Bank of Greece as the central bank of Greece in 1928, the Bank, in addition to commercial banking activities, was responsible for issuing currency in Greece. The
Bank expanded its business further when, in 1953, it merged with Bank of Athens S.A. On October 2, 1998, the Bank merged into NMB to enhance revenue generation, realize
cost-saving efficiencies and provide more integrated mortgage lending services to the Bank's customers. In December 2002, the Bank fully acquired and integrated the operations of the
National Bank for Investment and Industrial Development ("ETEBA"), an investment bank that was a majority-owned subsidiary of the Bank. As part of our ongoing effort to improve our portfolio structure
and effectively respond to changes in the domestic and international markets, in December 2005 the Bank fully acquired and integrated the operations of our securities portfolio management subsidiary,
the National Investment Company S.A.

The
Bank's efforts to integrate further our operations and enhance our overall structure also led to the full acquisition and integration on March 31, 2006, of our subsidiary
National Real Estate S.A.
("National Real Estate"). We also merged National Management & Organization Co. ("Ethnokarta") into the Bank effective as at March 31, 2007, as well as merged the Bank's
warehousing section into our wholly-owned subsidiary, Pronomiouhos S.A. Genikon Apothikon Hellados, effective upon approval by the General Meeting of Shareholders of the Bank on May 25,
2007.

The
Bank intends to expand through organic growth, and to continue to evaluate acquisition, joint venture and partnership opportunities as they arise. In keeping with this strategy, we
have expanded our presence in SEE. In October 2003, we acquired Banca Romaneasca in Romania, and in 2005 we acquired Eurial, a Romanian automobile leasing company, as well as Alpha Romania Insurance,
which we acquired from another Greek bank. These acquisitions followed on the expansion of our banking activities through the acquisitions of Stopanska Banka ADSkopje in FYROM and 89.9%
of the share capital of United Bulgarian Bank ADSofia (UBB) in Bulgaria in 2000.

In
February 2006 we disposed of our subsidiary NBG Canada, and in April 2006 we disposed of our subsidiary Atlantic Bank of New York, in line with our strategy to divert from mature
markets and focus on emerging markets.

In
2006 we undertook our largest international acquisition to date. On August 18, 2006, we acquired 46% of the ordinary shares and 100% of the founder shares in Finansbank, a
commercial and retail bank in Turkey, from Fiba Holding A.S. ("Fiba Holding"), Fina Holding A.S. ("Fina Holding"), Girisim Factoring A.S. ("Girisim Factoring") and Fiba Factoring Hizmetleri A.S.
("Fiba Factoring") (together, the "Fiba Sellers") for a consideration of US$2,323 million and US$451 million, respectively. As at December 31, 2007, Finansbank was the fifth
largest privately owned bank in Turkey in terms of total assets. In order to finance our acquisition of Finansbank, we increased our share capital through a rights issue in July 2006 by payment in
cash with preemptive rights to our existing shareholders at a

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ratio
of four new shares for every ten shares. Fiba Sellers retained a residual stake of 9.68% in the ordinary share capital of Finansbank, which is subject to certain put and call agreements, as
provided for in the shareholders' agreement between the Bank and Fiba Sellers, exercisable for a two-year period commencing on August 18, 2008, at a multiple of between 2.5 and 3.5
times the book value of Finansbank's ordinary shares, subject to certain performance criteria. Fiba Sellers also agreed and undertook to attend any general meetings of Finansbank and to vote such
number of shares they then own as is equal to the difference between 50.01% of the ordinary shares and the total number of ordinary shares then owned by the Bank in accordance with the instructions
and directions of the Bank. Based on that, it was deemed that the Bank obtained a controlling interest on August 18, 2006 and as such this acquisition was within the scope of FAS 141
Business Combinations. As a result of Turkish Capital Markets legislation, NBG made a mandatory offer to the minority shareholders of Finansbank. During the mandatory tender offer period between
January 8 and January 29, 2007, the Bank acquired a further 43.44% of Finansbank's outstanding ordinary shares, for a consideration of €1,733 million, through the
Istanbul Stock Exchange ("ISE"). On April 5, 2007, we sold 5% of Finansbank's share capital to the International Finance Corporation ("IFC"). This stake is subject to certain put and call
agreements, as provided in the shareholder's agreement between NBG and IFC, exercisable in seven years. Following the completion of the mandatory tender offer and the sale of shares to the IFC, we
have proceeded to acquire further outstanding ordinary shares in Finansbank. On May 18, 2007, the Board of Directors of Finansbank decided to increase the share capital of the Bank to TRY
1,400 million from TRY 1,250 million through capitalization of profits and reserves. The increase was completed on July 9, 2007. Up to March 31, 2008 (the most recent
practicable date), we had acquired 84.97% of Finansbank's outstanding share capital, for a consideration of €3,392 million.

On
September 12, 2006, we entered into an agreement with the Republic of Serbia for the acquisition of 99.4% of the share capital of Vojvodjanska Banka a.d. Novi Sad
("Vojvodjanska") for a total cash consideration of €360 million. The acquisition was effected on December 31, 2006. Pursuant to the acquisition agreement, we deposited a
further €25 million in an escrow account to set off certain expected recoveries from Vojvodjanska's fully provided non-performing loan portfolio until December 2007.
The recoveries as at December 31, 2007 amounted to €7.7 million, which will be offset by a payment to the Republic of Serbia out of the escrow account. As a result, the
cost of the acquisition of Vojvodjanska and net assets at acquisition will increase by this amount.

On
January 25, 2007, the Boards of Directors of the Bank and National Management and Organization Company S.A. ("NMOC") decided to merge the two companies through
absorption of NMOC by the Bank. This merger was approved by the Ministry of Development on September 28, 2007.

In
October 2007, we exercised our minority buy-out option for Vojvodjanska and through a public tender offer acquired 1,727 common shares at a price of RSD 70 per share.
After this share purchase, we are the sole shareholder of Vojvodjanska and delisted its shares from the Belgrade Stock Exchange on November 28, 2007. On November 14, 2007, we proposed a
share capital increase of Vojvodjanska of €53 million, which was completed on December 19, 2007. On November 19, 2007, we proposed the merger of the Vojvodjanska
with NBG Beograd through absorption of the latter by the former. The merger was approved by the Central Bank of Serbia on February 5, 2008 and was completed on February 14, 2008.

On
March 21, 2007, we acquired 100% of P&K Investment Services S.A., a large Greek investment services company, from its selling shareholders ("P&K Sellers"), for a
consideration of €48.7 million, €43.9 million of which was paid to the P&K Sellers upon closing. The remaining consideration will be released to the P&K
Sellers on March 21, 2010, conditional on the attainment of key targets set out in the pre-agreed business plan. On May 10, 2007, P&K Investment Services S.A. disposed
of its subsidiary P&K Mutual Fund Management S.A. to Millennium Bank AE for €1.7 million. In May 2007 we merged our wholly-owned subsidiaries P&K Securities S.A.
and National Securities S.A. to create

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National
P&K Securities S.A. The Greek Ministry of Development approved the merger on December 14, 2007.

On
April 19, 2007, we signed an agreement for the sale of our minority shareholding in AGET Heracles to majority shareholders Lafarge Group. Pursuant to this agreement, we sold
18,480,899 shares, representing 26% of the share capital of AGET Heracles. This sale was consistent with our stated strategy to focus on our core banking activities and exit from
non-financial participations. The sale price was agreed at €17.40 per share, or €321.6 million in total and was in line with the average closing
price of the last 30 trading days preceding the transaction.

The
increased demand for individual pensions in Turkey has created a rapidly growing insurance business for these products. In May 2007, Finansbank applied to the General Directorate of
Insurance in Turkey for, and has received, permission to establish Finans Emeklilik ve Hayat A.S. ("Finans Pension"). The company completed its corporate organization and obtained a license to conduct
life and personal accident business dated November 21, 2007 and a licence to conduct individual pension business dated April 11, 2008. Finans Pension has commenced operations in life and
personal accident business.

On
September 24, 2007, we announced a voluntary takeover bid in cash of €5.50 per share for the 23.08% of the share capital of EH held by minority shareholders. As
at December 31, 2007, we held 100% of the share capital of EH. On January 14, 2008, the extraordinary General Meeting of EH's shareholders approved the filing with the Hellenic Capital
Markets Commission
("HCMC") for de-registration of the company's shares from the ATHEX, and on February 7, 2008, de-registration was approved.

On
December 17, 2007, we established a new partially-owned subsidiary, CPT Investments Ltd. Its purpose will be to explore investment opportunities in capital
markets.

The
table below sets out the Bank's principal items of capital expenditure for 2005, 2006 and 2007.

|                                                      |  | Year ended December 31, |    
|----------------------------------------------------- |  | ----------------------- | ---
|
|
|
|Interests in other companies                          |  | 268,460                 | (1)
|Information technology and other electronic equipment |  | 17,185                  |    
|Furniture, fixtures and fittings                      |  | 844                     |    
|Other capital expenditures(4)                         |  | 44,717                  |    
|                                                      |  |                         |    
|Total                                                 |  | 331,206                 |    
|                                                      |  |                         |    

---

Also, as part of a strategy to streamline our operations, we continue to divest non-core equity investments and real estate that are
unrelated to our principal financial services businesses, and to commit the released resources to more profitable activities. As part of our program of disposing of non-core assets, we
have made significant domestic divestitures in the last three years, as summarized

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in
the table below. In 2006 we also disposed of our subsidiaries Atlantic Bank of New York and NBG Canada as part of our program to focus on emerging markets.

|               |  |                                |  | Year ended December 31,
|-------------- |  | ------------------------------ |  | -----------------------
|
|
|
|Investments(1) |  | The Bank                       |  | 58.1                   
|Real estate(2) |  | The Bank and Ethniki Kefalaiou |  | 17.3                   

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For further information on disposals of non-core assets, see Item 5, "Operating and Financial Review
and ProspectsKey Factors Affecting Our Results of OperationsDisposal of Non-Core Assets."

No
public takeover offers for our shares have been made by third parties during the 2007 financial year or the current financial year, as at the date of this Annual Report.

B.    Business Overview

Introduction

We are the largest financial institution in terms of loans to customers and the largest company by market capitalization in Greece, according to our analysis of
published financial statements of Greek banks. Our core focus outside Greece is in Turkey and SEE, where we currently operate in Bulgaria, Serbia, Romania, Albania, Cyprus and FYROM. Altogether, we
have a presence in 12 countries outside Greece. We offer our customers a wide range of integrated financial services, including:



In
addition, we are involved in various other businesses, including the hotel business, property management and real estate business and IT consulting.

The
Bank is our principal operating company, representing 69.7% of our total assets as at December 31, 2007.

The
Bank's liabilities, represent 74.7% of our total liabilities as at December 31, 2007. While the Bank conducts most of our banking activities, it is supported by seven foreign
banking subsidiaries: Finansbank AS, United Bulgarian Bank ADSofia (UBB), Vojvodjanska Banka a.d. Novi Sad, Banca Romaneasca SA, Stopanska Banka A.D.Skopje, NBG
Cyprus Ltd. and South African Bank of Athens Ltd. We intend to continue to expand our operations in SEE, Eastern Europe and the Southeastern Mediterranean region.

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The
following table summarizes our assets, net income before tax, income tax expense and depreciation, amortization expense and revenues under U.S. GAAP attributable to our
banking and other operations, showing the relative contributions of Greek and foreign activities. Our business and revenues are not materially affected by seasonal variations.

|                   |                                     | Total Assets |            | (%) |       | Interest income |           | (%) |       | Interest expense |           | (%) |       | Non interest income |           | (%) |       | Non interest expense |           | (%) |       | Net income before taxes |           | Income tax (expense)/ benefit |          | Depreciation
&
Amortization expense
|------------------ | ----------------------------------- | ------------ | ---------- | --- | ----- | --------------- | --------- | --- | ----- | ---------------- | --------- | --- | ----- | ------------------- | --------- | --- | ----- | -------------------- | --------- | --- | ----- | ----------------------- | --------- | ----------------------------- | -------- | -----------------------------------
|
|December 31, 2005: |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | BankingGreek                       |              | 46,975,406 |     | 78.3  |                 | 1,965,193 |     | 77.7  |                  | 617,964   |     | 69.8  |                     | 488,964   |     | 32.9  |                      | 1,074,221 |     | 51.0  |                         | 571,328   |                               | (176,583 | )                                  
|                   | BankingForeign                     |              | 8,035,375  |     | 13.4  |                 | 399,568   |     | 15.8  |                  | 217,340   |     | 24.6  |                     | 189,267   |     | 12.7  |                      | 210,185   |     | 10.0  |                         | 126,942   |                               | (16,247  | )                                  
|                   | Investment Banking                  |              | 265,454    |     | 0.4   |                 | 1,331     |     | 0.1   |                  | 40        |     |      |                     | 44,389    |     | 3.0   |                      | 22,135    |     | 1.1   |                         | 23,545    |                               | (7,376   | )                                  
|                   | Global Investment & Private Banking |              | 28,865     |     | 0.0   |                 | 929       |     | 0.0   |                  |          |     |      |                     | 9,455     |     | 0.6   |                      | 9,109     |     | 0.4   |                         | 1,274     |                               | (2,365   | )                                  
|                   | Insurance                           |              | 1,604,622  |     | 2.7   |                 | 23,286    |     | 0.9   |                  | 1,646     |     | 0.2   |                     | 685,800   |     | 46.0  |                      | 672,655   |     | 31.9  |                         | 34,785    |                               | (23,871  | )                                  
|                   | OtherGreek(1)                      |              | 343,260    |     | 0.6   |                 | 81        |     |      |                  | 131       |     | 0.0   |                     | 48,898    |     | 3.3   |                      | 47,025    |     | 2.2   |                         | 1,823     |                               | (6,344   | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Continuing operations               |              | 57,252,982 |     | 95.4  |                 | 2,390,388 |     | 94.5  |                  | 837,121   |     | 94.6  |                     | 1,466,773 |     | 98.5  |                      | 2,035,330 |     | 96.6  |                         | 759,697   |                               | (232,786 | )                                  
|                   | Discontinued operations             |              | 2,754,517  |     | 4.6   |                 | 139,069   |     | 5.5   |                  | 47,738    |     | 5.4   |                     | 22,764    |     | 1.5   |                      | 71,828    |     | 3.4   |                         | 46,773    |                               | (18,490  | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Total                               |              | 60,007,499 |     | 100.0 |                 | 2,529,457 |     | 100.0 |                  | 884,859   |     | 100.0 |                     | 1,489,537 |     | 100.0 |                      | 2,107,158 |     | 100.0 |                         | 806,470   |                               | (251,276 | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|December 31, 2006: |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | BankingGreek                       |              | 52,490,658 |     | 69.3  |                 | 2,339,366 |     | 66.3  |                  | 877,068   |     | 62.0  |                     | 591,820   |     | 32.5  |                      | 1,222,410 |     | 47.1  |                         | 606,337   |                               | (136,068 | )                                  
|                   | BankingForeign                     |              | 10,066,336 |     | 13.3  |                 | 597,798   |     | 16.9  |                  | 253,411   |     | 17.9  |                     | 158,484   |     | 8.7   |                      | 207,450   |     | 8.0   |                         | 272,905   |                               | (19,353  | )                                  
|                   | Banking Turkey                      |              | 10,706,009 |     | 14.1  |                 | 530,900   |     | 15.0  |                  | 270,507   |     | 19.1  |                     | 120,467   |     | 6.6   |                      | 255,695   |     | 9.9   |                         | 111,674   |                               | (34,347  | )                                  
|                   | Investment Banking                  |              | 224,552    |     | 0.3   |                 | 5,403     |     | 0.2   |                  | 84        |     | 0.0   |                     | 66,653    |     | 3.7   |                      | 31,944    |     | 1.2   |                         | 40,028    |                               | (13,900  | )                                  
|                   | Global Investment & Private Banking |              | 11,976     |     | 0.0   |                 | 573       |     | 0.0   |                  |          |     |      |                     | 7,509     |     | 0.4   |                      | 9,562     |     | 0.4   |                         | (1,704    | )                             | (3,001   | )                                  
|                   | Insurance                           |              | 1,938,699  |     | 2.6   |                 | 28,726    |     | 0.8   |                  | 1,349     |     | 0.1   |                     | 773,952   |     | 42.4  |                      | 809,940   |     | 31.1  |                         | (8,611    | )                             | (7,759   | )                                  
|                   | OtherGreek(1)                      |              | 275,508    |     | 0.4   |                 | 8         |     |      |                  |          |     |      |                     | 38,398    |     | 2.1   |                      | 44,458    |     | 1.7   |                         | (6,053    | )                             | (271     | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Continuing operations               |              | 75,713,738 |     | 100.0 |                 | 3,502,774 |     | 99.2  |                  | 1,402,419 |     | 99.1  |                     | 1,757,283 |     | 96.4  |                      | 2,581,459 |     | 99.4  |                         | 1,014,576 |                               | (214,699 | )                                  
|                   | Discontinued operations             |              |           |     |      |                 | 29,732    |     | 0.8   |                  | 12,672    |     | 0.9   |                     | 65,979    |     | 3.6   |                      | 14,288    |     | 0.6   |                         | 69,326    |                               | (11,139  | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Total                               |              | 75,713,738 |     | 100.0 |                 | 3,532,506 |     | 100.0 |                  | 1,415,091 |     | 100.0 |                     | 1,823,262 |     | 100.0 |                      | 2,595,747 |     | 100.0 |                         | 1,083,902 |                               | (225,838 | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|December 31, 2007: |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | BankingGreek                       |              | 61,825,219 |     | 68.0  |                 | 3,017,118 |     | 53.8  |                  | 1,351,842 |     | 51.6  |                     | 604,663   |     | 28.2  |                      | 1,318,102 |     | 39.8  |                         | 832,458   |                               | (198,539 | )                                  
|                   | BankingForeign                     |              | 11,383,090 |     | 12.5  |                 | 797,626   |     | 14.2  |                  | 391,634   |     | 15.0  |                     | 327,053   |     | 15.2  |                      | 314,289   |     | 9.5   |                         | 389,899   |                               | (17,632  | )                                  
|                   | Banking Turkey                      |              | 14,180,871 |     | 15.6  |                 | 1,747,769 |     | 31.2  |                  | 874,275   |     | 33.3  |                     | 180,302   |     | 8.4   |                      | 635,048   |     | 19.2  |                         | 376,227   |                               | (71,820  | )                                  
|                   | Investment Banking                  |              | 1,177,722  |     | 1.3   |                 | 8,417     |     | 0.2   |                  | 572       |     | 0.0   |                     | 103,283   |     | 4.8   |                      | 64,633    |     | 2.0   |                         | 46,495    |                               | (9,908   | )                                  
|                   | Global Investment & Private Banking |              | 9,030      |     | 0.0   |                 | 568       |     | 0.0   |                  |          |     | -    |                     | 12,162    |     | 0.6   |                      | 9,602     |     | 0.2   |                         | 3,128     |                               | (4,721   | )                                  
|                   | Insurance                           |              | 2,107,459  |     | 2.3   |                 | 34,742    |     | 0.6   |                  | 1,416     |     | 0.1   |                     | 881,572   |     | 41.0  |                      | 930,035   |     | 28.1  |                         | (15,137   | )                             | (7,230   | )                                  
|                   | OtherGreek(1)                      |              | 277,257    |     | 0.3   |                 |          |     |      |                  | 145       |     | 0.0   |                     | 38,845    |     | 1.8   |                      | 41,490    |     | 1.2   |                         | (2,788    | )                             | (1,641   | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Continuing operations               |              | 90,960,648 |     | 100.0 |                 | 5,606,240 |     | 100.0 |                  | 2,619,884 |     | 100.0 |                     | 2,147,880 |     | 100.0 |                      | 3,313,199 |     | 100.0 |                         | 1,630,282 |                               | (311,491 | )                                  
|                   | Discontinued operations             |              |           |     |      |                 |          |     |      |                  |          |     |      |                     |          |     |      |                      |          |     |      |                         |          |                               |         |                                    
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    
|                   | Total                               |              | 90,960,648 |     | 100.0 |                 | 5,606,240 |     | 100.0 |                  | 2,619,884 |     | 100.0 |                     | 2,147,880 |     | 100.0 |                      | 3,313,199 |     | 100.0 |                         | 1,630,282 |                               | (311,491 | )                                  
|                   |                                     |              |            |     |       |                 |           |     |       |                  |           |     |       |                     |           |     |       |                      |           |     |       |                         |           |                               |          |                                    

---

According to our analysis of publicly available financial statements of Greek commercial banks, the Bank is the largest commercial bank in Greece
in terms of assets, deposits, loans and number of branches. As at December 31, 2007, the last date for which such information is publicly available, approximately 24% of all deposits with, and
approximately 20% of all loans made by Greek commercial banks (excluding specialized credit institutions) were held or made by the Bank.

We
are one of the most diverse financial services groups in Greece according to our analysis of the published financial statements of Greek banks. According to this analysis, in addition
to our banking activities, we are currently the largest and most active participant by volume in the national electronic dealing system of Greek Government bonds. We estimate that we have
approximately 12.1% duration-weighted participation in the primary market while we handle approximately 18.3% of the average daily volume in the secondary market for Greek government securities. Also,
on December 31, 2007, we had approximately €7.6 billion in assets under management, and we are currently the largest asset manager in the Greek market, according to data
published by the Association of Greek Institutional Investors.

We
are also a leader in providing many other financial services in Greece. For example, we are the largest mortgage lender and the largest insurance operator (in terms of revenues), one
of the leading

24

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Greek
underwriters of domestic equity securities and one of the leading providers of securities trading services.

We
use a variety of marketing and distribution channels to maintain and enhance our market position, including telemarketing (particularly for credit card sales), radio, television,
press and internet advertising and distributing promotional information brochures in our branches. As part of our marketing strategy, we seek to capitalize on our existing relationships with
individual customers through cross-selling efforts aimed at increasing such customers' awareness of other products that are offered by Group companies. For instance, our mortgage customers are
informed of our insurance products, through which they may insure against damage to their property and against events and circumstances that might cause them to default on their mortgage loans. Our
marketing strategy also includes indirect marketing, pursuant to which we have entered into agency agreements with retailers, such as automobile dealers and electronics chain stores, who agree to
offer our consumer loan products to their
customers in connection with purchases of consumer goods. In addition, we employ various alternative distribution methods, such as cooperation with real estate agents and construction businesses in
the sale of mortgage loans and with accountants and consultants in the sale of small business loans. We have also entered into contractual arrangements with mobile telephone service providers in
Greece that enable us to offer to our customers certain banking services, such as balance inquiries, through their mobile telephones. We provide certain banking services over the internet, including
the transfer of funds between accounts, balance inquiries, bill payments, stock brokerage and subscription to initial public offerings on the ATHEX.

Overview of the Banking Services Sector in Greece

The banking sector has expanded rapidly in recent years, due to both deregulation and technological advances. As at December 31, 2007, the date of the most
recently available information, there were 47 domestic and foreign banks and other credit institutions operating in Greece (excluding the 16 cooperative banks).

Universal Banks

Traditionally, commercial banks have dominated the Greek financial services market. However, specialized credit institutions have expanded into commercial banking
as a result of significant liberalization of the Greek financial services industry, thereby increasing competition in the market. The distinction between commercial and investment banks ceased to
exist formally and the Bank of Greece classifies all banks operating in Greece as "universal banks", with the exception of the Consignment Deposits and Loans Fund (which is a legal entity of public
law, fully owned and controlled by the Hellenic Republic).

There
are three banks that are controlled, directly or indirectly, by the Hellenic Republic: Bank of Attica, the Postal Savings Bank and ATE Bank (formerly the Agricultural Bank of
Greece). Over the last ten years, the Hellenic Republic proceeded to privatize a large number of credit institutions. For example, in 1998, the Hellenic Republic privatized the Bank of Central Greece
and Creta Bank, in early 1999, Ionian Bank, and, in March 2002, ETBA, an ATHEX listed industrial development bank. Additionally, a portion of the Hellenic Republic's indirect shareholding of General
Hellenic Bank was sold to private investors in April 1998 and a majority stake was sold to Société Générale in early 2004. The Bank of
MacedoniaThrace was also formerly state-controlled until the Group and the Hellenic Postal Savings Bank sold 37% of its total equity to Bank of Piraeus, a private commercial bank, in
April 1998. In 2000, France's Crédit Agricole purchased a 6.7% interest in Emporiki Bank, which was further increased to 9.0% in 2002, in connection with the Hellenic Republic's
privatization project. In August, 2006 Crédit Agricole acquired a further 71.97% interest in Emporiki Bank. Moreover, the Hellenic Republic proceeded with the partial privatizations of
the Postal Savings Bank and ATE Bank through the listing of their shares on the ATHEX. In addition, since September 2000, Banco

25

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Commercial
Portuguese, a Portuguese bank, has been active in the Greek market through Millennium Bank.

Although
there are currently 17 Greek private universal banks incorporated in Greece, there has been a recent trend towards consolidation. For example, Ergobank S.A. and EFG
Eurobank S.A. merged in July 2000 to form EFG Eurobank Ergasias S.A. ("EFG Eurobank"). EFG Eurobank merged with Telesis Bank in early 2002 and with UnitBank in December 2003. Similarly,
the Bank of MacedoniaThrace, Bank of Piraeus and Xiosbank S.A. merged in June 2000, creating the Piraeus Group. The Piraeus Group subsequently acquired a 57.8% interest in ETBA, in
March 2002, which was previously a majority state-owned industrial development bank listed on the ATHEX. ETBA was merged entirely into the Piraeus Group in December 2003. In December 2002, the Bank
merged with ETEBA (our investment banking arm). In 2006, Egnatia Bank and Marfin Bank, along with Laiki Bank, a Cyprus-based bank with a Greek subsidiary, formed a new unified group.

In
recent years, most of the major Greek banks have expanded internationally, establishing or enhancing their presence in SEE. In addition to the Bank's acquisition of controlling stakes
in Finansbank and Vojvodjanska during 2006 and the first months of 2007, other Greek banks have proceeded with acquisitions of banks in the region. EFG Eurobank became the 100% shareowner of
Nacionalna Stedionica Banca in Serbia in March 2007 and took control of over 90% of DZI Bank in Bulgaria in December 2006. Also, in March 2007, EFG Eurobank concluded the purchase of a 99% stake of
Universal Bank in Ukraine, and at the same time completed the acquisition of a 70% stake in Tekfenbank in Turkey. Alpha Bank agreed to acquire 90% of the Ukrainian OJSC Astra Bank in 2008. ATE Bank
made its first expansion steps in SEE by acquiring a 20% stake in AIK Bank in Serbia in October 2006 and a 69% stake of MindBank in Romania in January 2007.

Foreign Banks

There are 28 foreign-owned or incorporated credit institutions that are well established in the Greek banking market. The principal participants in the industry,
and our principal foreign competitors in Greece, include Citibank, Bank of Cyprus, Royal Bank of Scotland and HSBC. With the exception of Bank of Cyprus, Citibank and HSBC, the majority of foreign
banks operating in Greece have little presence in retail banking services.

Specialized Credit Institutions

The only remaining specialized credit institution is the Consignment Deposits and Loans Fund, which is an autonomous financial institution, organized as a public
law entity under the supervision of the Ministry of Finance. Its activities mainly consist of the acceptance of consignments (in cash or in kind), the granting of housing loans to qualifying borrowers
(primarily civil servants) and the support of regional development.

Competition

As of April 2002, Greek law allows non-banking institutions that are licensed by the Bank of Greece to extend consumer credit or loan facilities.
These institutions are in direct competition with universal banks in the consumer credit sector.

The
table below shows the breakdown of assets, loans outstanding and deposits in the universal banking sector for the Bank and our five main competitors in Greece as at
December 31, 2007. These

26

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figures
have been compiled by the Bank based on publicly available information (stand-alone financial statements of the banks shown prepared in accordance with IFRS).

|                                       |  | As at and for the year ended December 31, 2007 | 
|-------------------------------------- |  | ---------------------------------------------- | 
|
|
|1. National Bank of Greece             |  | 71,059                                         | 
|2. EFG Eurobank Ergasias               |  | 68,272                                         | 
|3. Alpha Bank                          |  | 54,039                                         | 
|4. Piraeus Group                       |  | 42,343                                         | 
|5. Emporiki Bank                       |  | 26,805                                         | 
|6. ATE Bank                            |  | 23,399                                         | 
|Total                                  |  | 285,917                                        | 
|                                       |  |                                                | 
|Sum of monetary financial institutions |  | 354,764                                        | 
|                                       |  |                                                | 

Overview of the Banking Services Sector in SEE & Turkey

In 2007, the macroeconomic performance of the SEE countries in which we have a presence (Albania, Bulgaria, Romania, Serbia, Cyprus and FYROM) and Turkey remained
strong, despite adverse external and domestic conditions. In particular, economic activity, although decelerating, remained robust. Real GDP growth rate stood at 6.2% and 4.5%, respectively, in SEE
and Turkey in 2007 compared to 6.9% and 6.1%, respectively, in 2006. In both cases, the high growth rates reflected the systematic implementation of structural and institutional reforms in the context
of the region's European orientation and the expansion of financial intermediation. In addition, the inflation rate declined in Turkey to 8.4% in 2007 from 9.7% in 2006. In SEE, inflation increased to
7.9% in 2007 from 5.2% in 2006, reflecting the supply shocks from a severe drought and the significant increase in international oil and food prices.

In
contrast, the already high current account deficit in SEE widened to 15.2% of GDP in 2007 from 11.2% in 2006, mainly on the back of strong domestic demand and higher international oil
and commodity prices. In Turkey, the current account deficit narrowed to 5.7% of GDP in 2007 from 6% in 2006, due mainly to moderating domestic demand. However, more than half of the 2007 current
account gap in SEE and Turkey was covered by non-debt generating Foreign Direct Investment ("FDI") inflows despite the ongoing global liquidity crisis which began in August 2007. FDI
inflows coverage of the current account deficit stood at 52% in SEE and Turkey in 2007, reflecting an improving macroeconomic outlook and accelerating integration with the EU.

Financial Intermediation in SEE

In 2007, despite high interest rates and slowing economic activity, banking intermediation in SEE expanded further, mainly due to the relaxation of measures
designed to contain credit expansion in Bulgaria and Romania, the two new EU member states admitted in January 2007 and greater confidence in the banking sector. Loans and deposits recorded impressive
growth rates of 57.5% and 36.1%, respectively, while the corresponding penetration rates stood at 41.1% and 37.3%. Lending to households remained the main driver of credit activity in SEE as a whole,
growing by 74.1% and bringing the households loans-to-GDP ratio to 18% in 2007 compared to 1.3% in 2001.

Developments in the Turkish Banking System

In 2007, financial intermediation in Turkey expanded, despite a slowdown in economic activity and high interest rates. Bank deposits and loans increased by 26.1%
and 14.6%, respectively, while their

27

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corresponding
penetration rates stood at 39.3% and 30.2% of GDP in 2007 compared with 33.5% and 13.9% in 2003.

Banking Activities in Greece

Most of our banking business is domestic and includes retail, commercial and investment banking. As at December 31, 2007, approximately 68.0% of the
Group's total assets were Greek banking-related assets. The Banking-Greek segment includes the Bank's domestic operations, NBG Asset Management Mutual Funds S.A. ("NBG Asset
Management"), Ethniki Leasing S.A. ("Ethniki Leasing") and National Mutual Fund Management S.A. The Group's Greek domestic operations account for 66.9% of our total lending activities as
at December 31, 2007. Gross loans attributable to Greek banking activities were €37,177 million as at December 31, 2007, a 17.3% increase compared to
€31,704 million at December 31, 2006.

Bank Domestic Operations

The following table sets forth details of the Bank's domestic operations (in terms of loans and deposits) at December 31, 2007:

|                      |  | Loans(1) |  | Deposits |  
|--------------------- |  | -------- |  | -------- | -
|
|
|Commercial and Retail |  | 34,655   |  | 92.1     | %
|Public Sector(2)      |  | 1,814    |  | 4.8      | %
|Interbank             |  | 1,165    |  | 3.1      | %
|                      |  |          |  |          |  
|Total                 |  | 37,634   |  | 100.0    | %
|                      |  |          |  |          |  

---

We believe that the Bank has a strong competitive advantage in attracting domestic deposits from retail and corporate clients due to the:



28

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The
charts below show the increases in domestic loans and domestic deposits attributable to the Bank from December 31, 2005 through December 31, 2007.

Domestic Loans

GRAPHIC

Domestic Deposits

GRAPHIC

As
at December 31, 2007, 12.2% of total deposits held by the Bank and 6.0% of total loans made by the Bank were in currencies other than the euro.

29

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Greek Banking Distribution Channels

As at December 31, 2007, the Bank operated throughout Greece through 575 branches, one private banking unit, one unit for financial institutions and nine
specialized banking units that deal exclusively with troubled and non-performing loans. As at December 31, 2007, the Bank had 1,421 ATMs, of which 834 are situated in our own
branches and 587 in other key locations such as supermarkets, metro stations, shopping centers, hospitals and airports (440 of our ATMs are equipped with cash deposit devices). The Bank has
approximately 2.4 million ATM cards active for use in both our own distribution network and the Greek interbanking system. In addition, the Bank has developed alternative distribution channels,
such as an e-banking platform targeted at both corporate and retail clients. In 2007, approximately 80,000 new corporate and retail clients were connected through our internet banking
services, with the total number of users reaching 260,000. Total number of transactions during 2007 was approximately 14.3 billion with a total value of €13,605 billion.
Also in 2007, a new Contact Center, through which the Bank provides information and transaction services through the use of a voice portal and a manned help desk began operation. In addition we have
established "Fast Line", a telephone service unit of consumer lending, through which loan requests of up to €50,000 may be instantly addressed by phone.

The
Bank's branches are located in almost every major city and town in Greece. Approximately 45% of the Bank's branches are located in Athens, Piraeus and Thessaloniki, which are the
major population centers in Greece. The Bank is engaged in a continuous process of rationalizing the organization of our branch network in order to reduce costs, primarily by centralizing
back-office functions
to free more employees to work on sales activities directly with customers. The first phase of the reorganization, which was completed in 2003, aimed at turning branches into product-focused sales
outlets to improve customer service. In addition, the Bank is continuing to consolidate redundant branches in order to maintain equivalent geographic coverage at a lower cost. As at
December 31, 2007, the Bank operated 231 full banking branches and 344 retail banking branches.

We
participate in DIAS Interbanking Systems S.A., which currently has 40 banks as shareholder-participants, including the Bank. DIAS Interbanking Systems provides interbank
services such as check clearing, ATM networking, fund transfers, payroll and pension services for the benefit of customers of shareholder-participants.

Retail banking

General

All of our retail banking activities in Greece are conducted by the Bank. The Bank offers retail customers a number of different types of deposit and investment
products, as well as a wide range of traditional services and products.

30

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The
following table illustrates our estimated market share in Greece for certain categories of retail banking activities as at December 31, 2006 and 2007, the latest date for
which official statistics are available.

Our Approximate Retail Market Share in Greece

|                       |  | 2006 |   | 2007 |  
|---------------------- |  | ---- | - | ---- | -
|Mortgage lending       |  | 24.2 | % | 23.5 | %
|Consumer loans         |  | 17.8 | % | 17.5 | %
|Credit cards           |  | 17.2 | % | 16.6 | %
|Funds under management |  | 29.0 | % | 31.6 | %
|Core deposits(1)       |  | 28.8 | % | 28.7 | %

---

Despite small decreases in market share in retail lending, the Bank maintained a strong market position and profitability. The Bank's management
believes that we have significant competitive advantages over other banks offering retail banking services in Greece, including our strong corporate image and name recognition in Greece, our large
customer base and our extensive network of branches and ATMs. In addition, the Bank continues to develop other channels of distribution, such as mobile telephone banking and internet banking.
These advantages help the Bank to access the largest and most diverse depositor base in Greece, providing the Bank with a large, stable and low-cost source of funding.

The
Bank places particular emphasis on continuing to improve the speed and flexibility of our services to our retail customers. The Bank's strategy for accomplishing these goals has
included:



The
Bank has maintained a favorable market position, according to the Bank of Greece, maintaining deposits in a competitive interest rate environment due to the loyalty of our customers,
our widespread presence throughout Greece providing customers with access to branches and ATMs and our favorable brand recognition.

Products

The Bank offers a wide range of products in an effort to meet the financial service needs of retail customers and to make it a leader in the consumer banking
industry in Greece. Our focus is on debt consolidation products, fixed term personal loans and car loans. The products incorporate loyalty and reward characteristics.

Savings and Investment Products

Our savings and investment products are offered in both euro and foreign currencies. Domestically, we had €50.6 billion of total deposits
as at December 31, 2007. In response to customer demand, the Bank offers investment products with higher yields. These products include repurchase agreements between the Bank and our clients
(backed by Greek Government bonds), Greek Government bonds from the Bank's proprietary portfolio, capital guaranteed-principal products and a wide range of mutual funds and unit trust products
provided by Diethniki Mutual Fund

31

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Management S.A.,
which is 100% owned by Group companies. See Item 4.B, "Business OverviewBanking Activities in GreeceMutual
Funds".

Consumer Credit Products

The Bank holds a leading position in consumer retail banking in Greece, according to data published by the Bank of Greece, and offers its customers a wide range
of credit cards, personal and consumer loans as well as personal lending arrangements through third party retailers.

The
consumer credit sector has grown significantly in recent years. The Bank's portfolio of consumer credit products amounted to €5,547 million at
December 31, 2007, up 15.7% compared to €4,793 million at December 31, 2006, and accounted for approximately 14.9% of the Bank's loan portfolio in 2007. New
production for the year overall was also impressive. The number of new credit cards more than doubled while the number of new open and revolving credit accounts grew by 48.4% to 79,039 in 2007, from
53,270 in 2006.

NBG
is one of the main credit card issuers in Greece, circulating more than one million cards and managing a total credit card portfolio of €1.5 billion as at
December 31, 2007. Despite competition in the Greek credit cards market, we maintained a strong position in 2007 by increasing our portfolio in terms of the number of cards by 14% and in terms
of outstanding balances by 2% from 2006. In 2007, we focused on increasing our customer base through the expansion of sales channels, including telemarketing and in store promotion, and the launch of
new products such as "My Cash", a new revolving credit product for cash advances.

The
credit approval process is centralized and carried out through the use of credit risk rating and measurement systems specifically designed to meet the particular characteristics of
the Bank's various loan exposures, such as bespoke credit scorecards, developed on the basis of historical data. Active credit risk management is achieved through risk adjusted pricing of products and
services as well as through the use of credit risk mitigation techniques.

Among
other reports, the Bank produces vintage analyses by period of disbursement, issuing channel, and product type for various delinquency definitions, thus continuously ensuring
strict monitoring of the scorecards' efficiency and separation power. Exposures are pooled by application score and delinquency bucket to produce estimates of default probabilities.

The
Bank utilizes alternative distribution channels such as Fast Line and Mediators, which are becoming increasingly popular with the customers and are acquiring more importance within
the Bank. Fast Line, the telephone service unit of consumer lending, managed more than 259,000 calls in 2007 and initiated more than 11,500 new loans. The success of the unit has been instrumental in
the growth of consumer lending both in terms of new acquisitions but also as a service and information center for consumer lending customers. The newly established third parties channel of "Mediators"
managed more than 193,000 calls in 2007 and initiated more than 4,800 new loans. Also in 2007, we implemented several measures relating to the management of our existing portfolio of credit cards,
including the enhancement of our multi-merchant loyalty scheme "Go National" and development of targeted marketing based on customer behavior.

As
the first Greek bank to introduce chip-based technology, in 2007 we completed the migration of our total portfolio to EMV chip cards (credit or debit cards containing a
computer chip with memory and interactive capabilities).

Mortgage Lending

The Bank is the leading mortgage lender in Greece, with a market share of 23.6% in 2007. As at December 31, 2007, the Bank's outstanding mortgage balances
amounted to €15,660 million, compared to €13,368 million at December 31, 2006, posting an increase of 17.1%, and constituting 42.1% of its

32

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total
lending to enterprises and households in Greece. The volume of new loan disbursements increased by 13% to €3,999 million in 2007 compared to
€3,538 million in 2006.

Mortgage
products are offered mainly through the Bank's extensive branch network, although great emphasis is placed in expanding the use of alternative distribution channels like real
estate agents, construction companies and insurance brokers. The share of loans generated through alternative channels such as real estate agents, building contractors and insurance brokers has been
steadily rising, accounting for approximately 22% of new disbursements in 2007.

The
Bank offers a wide range of mortgage products, with floating, fixed, or a combination of fixed and floating interest rates. As of October 2007 floating rate products are indexed,
based on one-month EURIBOR plus a margin of a maximum of 3% depending predominantly on the customer's credit profile, scope, loan-to-value ("LTV") and the amount
borrowed. Some products are also offered with a grace period of up to two years or an interest only period of up to five years. Together, these products accounted for less than 1.5% of new
disbursements.

With
interest rates rising in 2006 and 2007, the Bank has placed a greater emphasis on the promotion of fixed rate mortgages, for an initial period of up to six years. In 2007, mortgages
with a fixed rate period of two years or more accounted for approximately 76.8% of our newly issued mortgage loans.

In
2007, the two most successful products offered by the Bank were "ESTIA 1+3" and "ESTIA 1+5", both of which offer a low trigger rate for the first year and a higher, but
still very competitive, fixed rate for the following three or five years, respectively, turning to a variable rate, indexed to one-month EURIBOR for the remaining duration of the loan.
These two products combined accounted for approximately 53% of all new loan disbursements in 2007. In the end of 2007, the Bank enriched the offered product range and introduced a new set of mortgage
products, the ESTIA 1, 2 and 3 PRONOMIO, offering favorable fixed rates for the first year, first two and first three years, respectively, followed by variable rate for the remaining loan
period.

Mortgages
in Swiss francs were introduced in January 2007 with similar characteristics to the "ESTIA" loans in Euros, with a very low trigger rate for the first year, and a higher fixed
rate for the next three or five years. After the fixed period, the interest rate becomes floating, using the one-month-LIBOR in Swiss francs as the reference rate, plus a spread.
"ESTIA CHF" products offer protection for up to 6 years against parity changes in excess of 5%, at a premium of 20 basis points. Loans denominated in Swiss francs carry much lower
interest rates than those in Euros. Loans in Swiss francs accounted for less than 5% of new disbursements in 2007.

An
important development regarding the quality of mortgage credit is that, in addition to fire and earthquake property insurance, an optional life insurance plan was offered together
with the mortgage. This new plan has been very successful, with 74% of new mortgages in 2007 carrying a life insurance plan.

The
Bank's mortgage loans are now offered with maturities of up to 40 years. Loans guaranteed and/or subsidized by the Hellenic Republic to special minority groups and victims of
natural disasters, for which maturity is determined by law, range from 15 to 25 years. The overall average duration for new loans is around 25 years.

The
Bank's mortgage operations have been further enhanced by the upgrading of its credit evaluation process to a more elaborate credit-scoring model in line with Basel II requirements.
Consequently, credit quality will be closely monitored and is expected to further improve. The period required for mortgage approval has been shortened through the use of electronic transfer of
applications between its branches and the credit-processing center of the Mortgage Credit Division.

The
mortgage underwriting process, including credit approval and granting procedures, is centralized under the Mortgage Credit Division. The rationale behind this organizational
structure is to ensure the correct application of credit policy, through a uniform, accurate and consistent decision-making process.

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Small and Medium Enterprises Division

In 2002, we established the Small Business Credit division, which was renamed to Small and Medium Enterprises ("SME") Division on February 15, 2005. The
division's purpose is to enhance and personalize services offered to our business clients and particularly to increase the Bank's penetration in the professional and small business segment. The SME
division administers credit underwriting of loans to professionals and small businesses with turnover of up to €2.5 million and is part of the Bank's retail banking operations.
It comprises three credit centers in Athens, Thessaloniki and Patras. Since its inception, the SME division has launched lending products for SMEs and professionals, such as:



In
addition, the Bank continued the promotion of financing products to a wider variety of business categories and freelance professionals such as gas stations, car dealerships, doctors,
pharmacies, dentists and notary's offices. Furthermore, the SME Division offers medium- and long-term loans geared towards medium- and long-term working capital needs or
financing of fixed assets, such as equipment and office renovations. In addition to the above, the Bank has created specific products to enforce financing of investments in photovoltaic systems for
energy production. Finally, the Bank has started cooperation with alternative channels such as financial and tax advisors, brokers and insurance agents for the promotion of its products.

Commercial banking

General

The Bank's commercial loan portfolio in Greece comprises approximately 50,000 corporate clients, including SMEs, and most of the largest corporate groups in
Greece. As a Group, we are able to offer our corporate clients a wide range of products and services, including financial and investment advisory services, deposit accounts, loans (denominated in both
euro and other currencies), foreign exchange, insurance products, custody arrangements and trade finance services.

Lending activities

The Bank lends to all sectors of the economy. As at December 31, 2007, domestic commercial lending (including to the public sector) accounted for 42.8%, or
€15,917 million, of the Bank's total domestic loan portfolio. Traditionally, the Bank has focused on lending to large- and medium-sized domestic corporations, especially
industrial corporations, which accounted for approximately 8.2% of its total domestic loan portfolio as at December 31, 2007. The Bank has several clients to which it has lent significant
amounts; its ten largest individual performing loan exposures totaled €2,341.4 million as at December 31, 2007, and accounted for approximately 15.4% of the Bank's total
domestic commercial loan portfolio.

The
Bank offers:



34

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The
Bank lends primarily in the form of credit lines, which are generally at variable rates of interest with payment terms of up to 12 months. In addition, the Bank provides
letters of credit and guarantees for our clients. See Item 5.E, "Operating and Financial Reviewand ProspectsOff-balance Sheet Arrangements". At
December 31, 2006 and 2007, the Bank had outstanding letters of credit and
guarantees amounting to €3.2 billion and €3.8 billion, respectively. Most loans are collateralized to a certain degree, although Greek law imposes
significant delays in foreclosing on collateral. See Item 4.E, "Selected Statistical DataAssetsLoan Portfolio" and
"Selected Statistical DataCredit QualityRisk ManagementLoan Approval Process".

The
table below sets forth certain key interest rates charged and the savings rate paid by the Bank. Following the European Central Bank ("ECB") rate increases in 2006 and 2007, the Bank
raised its savings rate accordingly.

|Interest rate on:                      |  | As at
March 17,
2003 |  | As at
June 12,
2003 |  | As at
May 1,
2005 |  | As at
March 17,
2006 |  | As at
June 28,
2006 |  | As at
April 2,
2007 |  | As at
August 1,
2007
|-------------------------------------- |  | -------------------- |  | ------------------- |  | ----------------- |  | -------------------- |  | ------------------- |  | ------------------- |  | --------------------
|Prime lending rate for working capital |  | 5.90%                |  | 5.75%               |  | 5.75%             |  | 5.75%                |  | 6.00%               |  | 7.00%               |  | 7.25%               
|Prime lending rate for fixed assets    |  | 6.15%                |  | 6.00%               |  | 6.00%             |  | 6.00%                |  | 6.25%               |  | 7.25%               |  | 7.50%               
|Variable rate mortgages                |  | 5.60%                |  | 5.50%               |  | 5.50%             |  | 5.50%                |  | 5.50%               |  | 6.15%               |  | 6.40%               
|Savings rate                           |  | 0%-1.70%             |  | 0%-1.40%            |  | 0.30%-1.40%       |  | 0.50%-1.40%          |  | 0.50%-1.65%         |  | 0.65%-2.15%         |  | 0.65%-2.15%         
|Personal loans                         |  | 9.95%                |  | 9.95%               |  | 9.95%             |  | 11.00%               |  | 11.00%              |  | 12.25%              |  | 12.50%              
|Consumer loans                         |  | 9.50%                |  | 9.25%               |  | 9.25%             |  | 9.25%                |  | 9.25%               |  | 10.75%              |  | 11.00%              

We also participate in, advise on and arrange large syndicated loans with both domestic and foreign banks. Generally, these loans finance large
domestic and international infrastructure projects and borrowings by large corporations and state-controlled entities. For example, the Bank participated as co-arranger and underwriter in
the financing of the Athens ring-road and the Rion-Antirrion bridge in Greece, the Birmingham Northern Relief Road in Britain, the High Speed Line Railway and the Rijnmond
Power Plant in Holland, the Maritsa East Power Plant in Bulgaria and the Stendal Pulp Mill in Germany. NBGI, the Bank's London-based investment banking subsidiary, is also active in arranging
international syndicated loans and acting as an advisor on projects in private sector transactions.

Shipping finance

Greece is a maritime nation with a long tradition in ship-owning and is one of the world's largest ship-owning and
ship-flagging nations. Shipping remains one of the most important sectors of the Greek economy and the Bank is one of the most active participants in the local market, as well as one of
the strongest competitors to foreign banks involved in shipping finance in Greece, according to an analysis of shipping finance made by Petrofin S.A., a financial consultancy firm specializing
in the shipping industry.

The
Bank has traditionally provided financing for many of the largest Greek shipping companies. As at December 31, 2007, outstanding shipping loans (mainly concerning bulk
shipping) were €1,261.7 million, representing approximately 3.3% of the Bank's total loan portfolio compared to €1,258.6 million or 3.9% of the Bank's
total loan portfolio, in 2006. Loans related to the ferry business (included in the aforementioned amount), represent 13% of our shipping loan portfolio as at December 31, 2007. The Bank's
total commitments (including outstanding amounts) towards shipping as at December 31, 2007 were €1,640 million compared to €1,242.7 million in
2006. The Bank's shipping finance activities are carried out almost exclusively through its Piraeus-based operation.

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The
Bank plans to continue with its strategy of targeting first-tier shipping groups with respect to both our conventional shipping finance and our syndicated loan activities
in order to improve quality, spread risk and enhance the profitability of our shipping loan portfolio. Nearly all of our shipping loans are secured by vessels.

The
shipping industry is highly cyclical, experiencing volatility in revenues and cash flows resulting from changes in the demand and supply of vessel capacity. The demand for vessels is
influenced by, among other factors, global and regional economic conditions, developments in international trade and
changes in seaborne and other transportation patterns. None of these factors is within our control. Nevertheless, in 2008 freights are expected to maintain 2007 levels.

The
Bank has experienced a significant decrease in non-performing loans attributable to this sector (€19.6 million as at December 31, 2007
compared to €27.7 million as at December 31, 2006).

The
Bank has adopted strategies and procedures to more effectively evaluate shipping credits and existing shipping loans are subject to periodic (at a minimum, annual) performance
reviews. This approach has delivered positive results and the Bank's management believes that it will result in sustained strong performance in this sector in the next few years.

Non-Performing Loans

The Bank's management has focused on reducing the level of the Bank's non-performing loans. Non-performing loans are defined generally as
those loans where principal or interest is more than 180 days in arrears, except for consumer and credit card loans which are considered non-performing when they are 90 days
in arrears. In recent years, management has taken steps to reduce the level of non-performing loans. Our policy for writing off non-performing loans, in conjunction with growth
in the Bank's total loan portfolio, has resulted in the decline of non-performing loans to approximately 3.1% of total loans as at December 31, 2007.

Other Banking Related Services

The Bank and certain of our subsidiaries (principally NBG Asset Management and Ethniki Leasing) offer a wide range of other banking related services, including:



Private Banking

The Bank launched our Private Banking operations in 2003, which currently offer services both domestically and internationally through our international private
banking units in London and Guernsey.

Private
Banking provides high net worth clients with high quality service and a wide scope of investment choices following a detailed evaluation of the customer's investment profile.
Also, advisory

36

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and
discretionary asset management services have been established during the final months of 2007, adding important solutions to our investment services.

We
have agreed with established international investment institutions to distribute investment products to our clientele, such as mutual funds, hedge funds, structured products, and
private equity products.

As
at December 31, 2007 Private Banking aggregate assets under management were €3.0 billion, an increase of 44% compared to
€2.1 billion in 2006.

2007
was also a year of high recognition for our Private Banking business, as it received the annual "Best Private Banking in Greece 2008" award in a survey conducted by Euromoney
magazine.

Treasury Activities

The Bank and each of our banking subsidiaries carry out their own treasury activities. These activities include:



The
Group's Treasury is active across a broad spectrum of capital market products and operations, including bonds and securities, interbank placements in the international money and
forex markets, and market-traded and OTC financial derivatives. It supplies the branch network with value-added deposit products, and the client base includes institutions, large corporations,
insurance funds and big private-sector investors. In general, the Bank and our subsidiaries enter into derivatives transactions for economic hedging purposes or in response to specific customer
requirements. The Bank also trades actively on a proprietary basis, primarily in Euro-denominated Greek Government securities, and to a lesser extent, in the spot foreign exchange market
and is a general clearing member in the Eurex derivatives exchange. In recent years, the Bank's treasury-related activities have represented a significant source of revenues. In 2007, total turnover
for foreign exchange trading and money market transactions by the Bank's central dealing room in Athens was approximately €153 billion and €704 billion,
respectively.

The
Bank is active in the primary and secondary trading of Greek Government securities, as well as in the international Eurobond market. The Bank is a founding member of the Group of
Greek Government Securities Primary Dealers which was established by the Bank of Greece in early 1998. In 2007, according to Bank of Greece data, the Bank ranked first in terms of volume traded among
22 primary dealers in Greek government bonds traded through the Electronic Secondary Securities Market.

Investment Banking Activities

In recent years, the Bank has maintained one of the leading market shares in capital market activities in Greece, particularly with regard to public offering
activity. Over the past five years, the Bank has acted as underwriter in 27 out of 39 domestic private sector IPOs. During the same period, the Bank has participated in all seven privatization
offerings in Greece, while being one of the lead

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managers
in the largest offerings in Greece. According to the Bank's internal statistics, the Bank's market share of underwritten offerings of equity securities by Greek issuers, in terms of
underwritten amount, was approximately 21% in 2007, representing an underwritten amount of €33.2 million, and approximately 26% in 2006, representing an underwritten amount of
€75.4 million. In addition to public offerings, we acted as joint bookrunners in the secondary offerings of OTE (€90 million), Halcor
(€90 million), and the Hellenic Exchanges SA (€80 million).

Project Finance

The Bank is also active in project finance, and during 2007, provided project finance advisory services to the Hellenic Republic on the Greek Motorways Project
which consists of seven motorway concession schemes with a total estimated construction value in excess of €8 billion. The Bank is also a leading advisor to the Hellenic
Republic for the new PFI Projects, where it is involved as advisor in four projects regarding 27 schools, two hospitals, six university buildings and two regional government buildings. The Bank
also provides finance to major infrastructure projects both in Greece and abroad through its participation in the respective syndicated loan facilities.

Custodian Services

The Bank offers custodian services to our foreign and domestic institutional clients who hold securities listed on the ATHEX, as well as remote settlement and
custody services on the Cyprus Stock Exchange ("CSE"). The Bank offers trade settlements, safekeeping of securities, corporate action processing, income collection, proxy voting, tax reclamation,
brokerage services, customized reporting, regular market flashes and information services. The Bank also acts as global custodian to our domestic institutional clients who invest in securities outside
Greece.

The
Bank acts as an agent for approximately 76 domestic institutional clients (four mutual funds, three investment companies, 20 insurance companies and 49 pension funds) and 36 foreign
institutional clients, including several leading global custodians, as at December 31, 2007. The respective numbers of institutional clients as at December 31, 2006 were 105 domestic
(four mutual funds, one investment company, one financial services company, 27 insurance companies and 72 pension funds) and 37 foreign. The Bank also offers custodian services to private Greek
investors, and had approximately 178,103 active custody accounts as at December 31, 2007, compared to 155,203 active custody accounts as at December 31, 2006. In addition, the Bank has
approximately 14,829 customers having only government debt in their portfolio and approximately 207,618 customers maintaining only mutual fund units in their portfolios compared to 24,000 and 195,000
customers, respectively, as at December 31, 2006.

Payment services

The Bank offers payment services to our clients participating in all local interbank payment channels. The Bank is also a member of the euro interbank channels of
TARGET, EBA for Euro 1, Step 1 and Step 2 services. As a member of Step 2, the Bank is the main Greek entry point for Eurozone payments. For payments, especially outside the Eurozone, the Bank
maintains a global network of correspondent banks. The Bank is currently in the process of implementing a major program to centralize its payment operations.

Asset Management

Our domestic fund management business is run by NBG Asset Management Mutual Funds S.A. ("NBG Asset Management"), which is wholly owned by the Group. It
manages funds that are made available to our customers through the Bank's extensive branch network. NBG Asset Management

38

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strengthened
its position among the mutual fund management companies in the Greek market and has remained for two consecutive years in the forefront of the Greek mutual funds market.

As
at December 31, 2007, NBG Asset Management's total assets under management were €7.6 billion, a 5.6% increase from 2006. Its market share in Greece was
31.13% as at December 31, 2007, compared to 29.4% as at December 31, 2006, according to the association of Greek Institutional Investors.

NBG
Asset Management offers 31 investment funds under the brand name Delos, four under the P&K brand name and 13 under the NBG International SICAV and NBG Synesis SICAV brand names,
which are resident in Luxemburg. NBG Asset Management offers a wide range of investment products that offer institutional and private investors access to the most important markets in stocks, bonds
and money market products, both in Greece and internationally. In 2007 it expanded its range of mutual funds with the introduction of Delos Delta Bonus and Delos Delta Fasma Funds products combining
high returns and initial capital protection, and Delos Tactical Allocation for investors wishing to invest in an absolute return fund.

The
release of these three new innovative products in 2007 resulted in an increase of €330 million in sales, driving NBG Asset Management into the leading position
of the Greek investment funds market. These products are characterized by high quality standards and competitiveness. The Bank's management believes that this qualitative shift will deliver benefits
for our profitability in the years ahead, as well as substantially enhance customer retention.

Delos Delta



These
funds offer a new investment concept as they combine high returns (depending on the course of selective stock index) and initial capital protection.

Delos Tactical Allocation Balanced Fund

This fund offers a new investment concept, as its model of portfolio management follows that of an absolute return fund, which provides stable returns with low
correlation to the markets.

In
2007 NBG Asset Management expanded its range of investment services. The company offers a more integrated range of contemporary investment services such as:



The
total value of the funds we have managed since 2003 is illustrated in the table below.

|As at December 31, |  | Funds under management |  | Market share
|------------------ |  | ---------------------- |  | ------------
|
|2003               |  | 7.7                    |  | 25.3        
|2004               |  | 8.5                    |  | 27.1        
|2005               |  | 6.9                    |  | 24.6        
|2006               |  | 7.2                    |  | 29.0        
|2007               |  | 7.6                    |  | 31.1        

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Other Financial and Related Services

We also offer a wide range of other financial and related services directly through the Bank and indirectly through specialized subsidiary companies. These
services include:



Leasing

We began leasing activities in 1990 through our subsidiary, Ethniki Leasing S.A. ("Ethniki Leasing"). Ethniki Leasing is active in the leasing of land and
buildings, machinery, transport equipment, furniture and appliances, and computer and communications equipment. As at December 31, 2007, Ethniki Leasing had assets of
€716.7 million and revenues of €39.9 million, before elimination of intercompany transactions and balances.

Factoring

We have been offering factoring services since 1996, including domestic factoring services such as debt collection, management and account monitoring and
advancing of funds for companies' outstanding claims. Internationally, we offer export credit, credit risk coverage, monitoring services, management and debt collection services. Factoring services
are provided through the Bank's corporate credit centers, which comprise a specialized division of the Bank. The Bank's corporate credit centers also provide lending services to small- and
medium-sized enterprises, offering a synergistic complement of services to these clients.

Real Estate Management

The Bank engages in real estate management activities, including warehousing and third-party property management. As at December 31, 2007, the Bank owned
1,517 real estate units, 1,096 of which were buildings the Bank acquired for our own business purposes or through seizure of collateral on loan foreclosures. The book value of those assets recorded at
historical cost was €340.7 million as at December 31, 2007. In addition, Ethniki Kefalaiou S.A., a wholly-owned subsidiary of the Bank that is engaged in asset and
liability management, including asset liquidation, managed 52 properties with an aggregate book value of €14.5 million as at December 31, 2007. Most of these properties
have been bought in recent years from the Bank, which acquired them on realization of collateral under non-performing loans. In line with our strategy of streamlining our activities, we
intend to continue to dispose of certain
non-core real estate holdings through Ethniki Kefalaiou S.A. For the year ended December 31, 2007, proceeds from the sale of land and buildings by the Bank amounted to
approximately €113.1 million and by Ethniki Kefalaiou S.A. €6.7 million.

National
Real Estate performed warehousing functions and held real estate property as a subsidiary. On March 13, 2007 the Bank divested its warehouse business into a subsidiary
and plans to dispose it to a third party. On March 31, 2006, the Bank consolidated the operations of National Real Estate. See Item 4.D,"Property, Plants and
Equipment"for general information regarding our real estate holdings and Item 4.A,"History and Development of the
Company"for information regarding our principal real estate divestitures in recent years. The Bank intends to continue to divest real estate holdings.

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International Operations

We operate, as a Group, in 12 countries outside Greece. As at December 31, 2007, our international network comprised 1,061 banking units outside Greece
(including Bank branches in the UK, Albania, Egypt, Cyprus and Guernsey, subsidiaries and representative offices), which offer traditional banking services and financial products and services. As a
result of the merger of NBG Serbia with Vojvodanska, the Bank currently has seven commercial banking subsidiaries in Turkey, Bulgaria, Romania, FYROM, Serbia, Cyprus, and South Africa. Our Turkish
subsidiary Finansbank also has a commercial banking subsidiary in Malta.

Our
policy, since the early 1990s, is to focus on the Bank's regional strength in SEE by strengthening our existing network and expanding into growing markets that present low banking
penetration and greater profit margins and also to withdraw from mature markets where growth prospects are limited. We seek to develop, in particular, our wholesale banking business by targeting major
financial centers to which we can offer Greek and Balkan lending exposure. Our retail banking presence in some geographical areas may only be justified by our success in niche markets in which we have
the ability to exploit competitive advantages.

Since
2000, the Bank has steadily built up a strong presence in SEE, through acquisitions and greenfield start-ups. The Bank's regional strategy aims at diversifying our
operations and enlarging our footprint to cover a region with attractive economic prospects. The Bank offers commercial banking services to customers in the region through our branches and
subsidiaries in Turkey, Bulgaria, Serbia, Romania, FYROM and Albania.

Turkish OperationsFinansbank A.S.

Overview

On August 18, 2006, we acquired 46% of the ordinary share capital, and 100% of the founder shares of Finansbank, a Turkish commercial bank headquartered in
Istanbul. The Fiba Sellers also agreed and undertook to attend any general meetings of Finansbank and to vote such number of shares they then own as is equal to the difference between 50.01% of the
ordinary shares and the total number of ordinary shares then owned by the Bank in accordance with the instructions and directions of the Bank. Based on that, it was deemed that the Bank obtained a
controlling interest on August 18, 2006 and as such this acquisition was within the scope of FAS 141 Business Combinations. As a result of Turkish Capital Markets legislation, NBG made a
mandatory tender offer to minority shareholders. During the mandatory tender offer period (January 8 to January 29, 2007), we acquired a further 43.44% of Finansbank's outstanding
ordinary shares in public hands. In April 2007, following an agreement signed in January of the same year, we disposed of 5% of Finansbank's shares to IFC (the relevant agreement includes put and call
options). Following the mandatory tender offer and the sale of shares to IFC, we acquired from February 2007 to December 2007 a further 0.45% of the outstanding share capital of Finansbank. As of
March 31, 2008 we hold 84.97% of the ordinary capital of Finansbank. Finansbank's group of companies includes FinansLeasing, FinansInvest, Finans Portfolio Management, Finans Investment Trust,
IBTech, Finans Pension and Finansbank Malta (together, "Finansbank Group"). See Item 4.A, "History and Development of the Company".

Finansbank
is the fifth largest private bank in Turkey in terms of total assets, loans and deposits, and offers a wide range of retail, commercial, corporate, private banking and
international trade finance services. In addition, financial leasing, capital market, corporate finance, portfolio management and brokerage services are provided by Finansbank's subsidiaries. As at
December 31, 2007, Finansbank operated through a network of 411 branches in 52 cities, of which 102 were opened during 2007, making it the seventh largest Turkish bank in terms of branch
network. On December 31, 2007, Finansbank had 9,061 employees, a 16.9% increase from December 31, 2006.

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In
2007, Finansbank contributed €304.4 million in net profit to the Group compared to €77.3 million in 2006 (Finansbank was consolidated for
only 135 days and 46% in fiscal year ending December 31, 2006, while in 2007 the percentage rose to 84.89%). Finansbank's income before tax was €376.2 million as
at December 31, 2007 and
€111.7 million as at December 31, 2006. As at December 31, 2007, total gross lending was €9,926.8 million while total deposits reached
€8,435.1 million, compared to €6,786.8 million and €5,943.9 million, respectively, as at December 31, 2006. Total assets of
Finansbank as at December 31, 2007 were €14.2 billion, accounting for 15.6% of our total assets compared to €10.7 billion and 14.1% as at
December 31, 2006. In 2007, 23.1% of the Group's net income from continuing operations (before taxes) was derived from Turkish operations compared to 11% in 2006.

In
the analysis that follows of Finansbank's and its subsidiaries' business, all amounts are before elimination of intercompany transactions and balances.

Corporate Banking

Finansbank's Corporate Banking Department serves large-scale corporate customers through its eight branches in the four largest cities in Turkey. In 2007,
Finansbank's Corporate Banking credit risk exposure reached US$5 billion with a 35% increase in TRY cash loans, a 38% increase in FX cash loans and a 48% increase in foreign currency deposits,
owing to the in-depth analysis of customer needs, corporate finance activities and syndication deals.

Finansbank's
Corporate Banking Department has benefited from integration into the NBG Group in 2007, taking advantage of NBG's reputation and experience in the international arena to
launch post delivery finance products in the shipping sector and to enhance its credibility in the local syndication market.

Commercial Banking

Finansbank's Commercial Banking Department serves mid-size companies located in 22 cities in Turkey. The Commercial Banking Department operates
through its Head Office departments, its four Regional Management offices (three in Istanbul and one in Ankara) and an extensive distribution network that includes 51 branches. The strategy of the
Commercial Banking Department is to serve a wider range of customers as their "House Bank" while obtaining sound and sustainable profitability. In the last quarter of 2007, the Commercial Banking
Department opened six new branches in order to expand its sales channels.

The
Commercial Banking Department's deposit and loan volumes increased by 35% in 2007 to TRY 1,489 million from TRY 1,107 million in 2006. Cash TRY loans
increased by 20% in 2007 to
TRY 1,087 million from TRY 909 million in 2006 and foreign cash loans increased by 43% in 2007 to US$1,156 million from US$1.657 million in 2006.

Investment Banking

Finansbank's Investment Banking Department consists of Project Finance, Corporate Finance and Technical Consulting. The Investment Banking Department acts as a
consultant and solution partner in its client relations while fulfilling client needs via medium- to long-term loans and other products. Companies are provided with assistance and
consultancy in such fields as project finance, privatization, contract finance and real estate development, financial valuation, acquisitions, financial restructuring, debt restructuring, syndication
loans (including secondary loans), country-based strategic market analysis and industrial analysis.

As
of March 31, 2008, about 2,000 evaluation, follow-up and syndication projects together with almost 1,000 information memoranda, presentations to companies from a
variety of industries, and

42

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country,
sectoral, consultancy and valuation reports have been evaluated and approximately US$7.97 billion with an average maturity of three years have been disbursed.

In
2007, 828 companies from 40 different industries have been covered. A total of 424 project reports have been prepared, including 222 project evaluation
reports, 70 project monitoring reports, 19 syndication reports, 14 industrial analysis reports and one country-based strategic market analysis report. As at December 31,
2007, the medium- to long-term loan risk of Finansbank was approximately US$3.5 billion, including US$0.7 billion total risk of 15 syndication projects finalized
throughout the year.

SME Banking

The SME Banking Division has been serving Finansbank's SME clients since 2003. Finansbank was the first bank in Turkey to provide sector support packages, such as
tourism and agriculture support packages, and it also pioneered the "Kobifinans" project to serve its clients' information and consultancy needs through magazines, internet portals and call centers.
By the end of 2007, the SME Banking Division was active in 235 branches where total credit volume of SME Banking increased by 29% and the deposits 21%. SME Banking's market share in 2007 increased to
12.7% from 12.1% in 2006.

Retail Banking

Finansbank's Retail Banking Division recorded significant loan growth in 2007. Finansbank's mortgage portfolio increased 64% from TRY 2.0 billion in 2006
to TRY 3.3 billion in 2007. This growth resulted in a market share increase in residential mortgage loans from 9.0% in 2006 to 10.55% in 2007. The car loan portfolio for individuals increased
21% from TRY 490 million in 2006 to TRY 593 million in 2007. The market share for individual car loans increased from 6.67% in 2006 to 7.14% in 2007, due to the development of close
relationships with distributors and dealers around the country through various co-marketing campaigns that offer subsidies and other incentives. The consumer loan portfolio increased 100%
from TRY 440 million in 2006 to TRY 878 million in 2007, while the market share in consumer loans increased from 2.48% to 2.91% during the same period.

Finansbank's
consumer deposit portfolio grew by 31.3% in 2007 faster than the Turkish market which grew at 16.3%. Consumer deposits and investment products portfolio reached TRY
7,334 billion, while consumer TRY time deposits increased by 39%, consumer TRY demand deposits increased by 44% and consumer foreign currency time deposits increased by 33% compared to 2006.

The
Micro Business Banking Department operates under Retail Banking and focuses on servicing all small business companies with an annual turnover of up to TRY 1 million and
professionals such as doctors, lawyers, engineers and accountants.

Mutual Funds

In 2007, Finansbank and Finans Portfolio Management introduced three new funds: FBIST (ETF) and QUANT, FINANS ANALIZ. Finansbank's market share in mutual funds
grew due to the mutual funds volume in OH ("Automatic Account", a demand deposit account in which funds that exceed a certain threshold are invested in mutual funds by Finansbank for the benefit of
the account holder), which is a key product for consumer banking. The introduction of the new funds was also the major contributor to the increase in market share. Market share as at
December 31, 2007 increased to 3.63%.

Credit Cards

In October 2007, CardFinans launched a new campaign with the concept "The Power is Yours". With this campaign, CardFinans introduced ten new product features
including the following: Interest

43

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Free
Loans to Spend Promise, CardFinans in 15 minutes (instant card facility), Ready to Use Consumer Loan, Automatic Utility Payment, Cash Advance in Installments, Spend Alert Service, Detailed
Statement Analysis and Unemployment Insurance. With "The Power is Yours" concept, from October 17, 2007 to January 17, 2007 almost 300,000 new card applications were acquired through
alternative acquisition channels such as SMS, internet and outdoor marketing activities. The new instant card facility "CardFinans in 15 minutes" has been implemented in 49 branches throughout Turkey.

During
2007 Finansbank increased its annual credit card spend volume from TRY 5.9 billion to TRY 9.3 billion, and its loans from TRY 1.6 billion to TRY
2.5 billion with a 50% growth rate that was above the market and its main competitors. As at December 31, 2007, Card Finans' loan market share was 9.2%, the highest level for the
company. Monthly spend volume reached 8% market share and exceeded TRY 1 billion. Total cards have increased 19.2% from 2.6 million in 2006 to 3.1 million in 2007 growing faster
than the market which grew at 15%.

In
May 2008, a draft law was presented to the Turkish parliament proposing to limit credit card interest rates to twice the average monthly interest rate on deposits. The monthly
rate on deposits is set out by the Central Bank of Turkey. While it has not yet been submitted for review to the respective parliamentary committee and for approval to the general assembly of the
Parliament, if passed by the general assembly, the proposed legislation would limit the monthly rate credit card providers can charge to an estimated 2.7% from 4.5%.

Alternative Delivery Channels

As of December 31, 2007, 65% of all transactions were made through alternative delivery channels (the internet, phone banking, ATM, IVR and POS machines).
The number of online banking customers reached over 661,000, an increase of 37% compared to 2006. The total number of transactions done through Finansbank Internet Banking increased by 27% in 2007.

Finansbank's
ATM network grew by 34% in 2007 as the number of ATMs reached 1,018 compared to 758 in 2006. ATM transaction volume increased by 81% in 2007. Visitors to the
Finansbank website
reached 2.9 million by the end of 2007. A special SMS channel was established as a new card acquisition channel.

Private Banking

Finansbank's Private Banking Division has been providing investment products and asset management services to high net worth individuals in 2007 through six
Private Banking Centers and 39 Private Banking Corners located in Finansbank's branches in all major cities throughout Turkey.

Following
internal forecasts on the performance of domestic and international markets and an analysis of the global political and economic situation, domestic and international
investment instruments are offered by Private Banking to meet clients' needs. Recommended instruments include time deposits, mutual funds, emerging market bonds, T-bills and
T-bonds, domestic and international equities and bonds, corporate bonds, currency exchange, forward contracts, futures and options, and structured products. Finansbank's Private Banking
Division has 70 specialized financial advisors providing broad coverage of the client base and enhanced cross-selling of the division's range of products. The division's Private Banking Centers
consistently support, develop, train and coach the branch teams in their effort to identify new high net worth clients as well as develop additional referral sources. Events and training are regularly
organized to inform clients about the latest investment and business issues. In 2007, Finansbank Private Banking had approximately US$3 billion in assets under management, an increase of over
100% compared to 2006.

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Finansbank's subsidiaries

The most significant subsidiaries of Finansbank include the following:

Finans Invest

Finans
Invest was established in December 1996, and began operations in January 1997 on the ISE. The company provides a wide range of financial services to both individual and
institutional investors, including investment counseling and brokerage services, portfolio management, fund investment services
and corporate finance and international investment services. The company ranks third in trading volume of stocks on the ISE and has a 5% market share. Finans Invest's client portfolio was TRY
2.3 million as at December 31, 2007. Total assets of Finans Invest on December 31, 2007 amounted to TRY 73 million and its net profit as of December 31, 2007 was TRY
7.7 million.

Finansbank Malta

Finansbank
(Malta) Ltd. ("Finansbank Malta"), held through Finansbank's wholly-owned subsidiary Finans (Malta) Holdings Ltd., was established three years ago and currently accounts for
4.4% of the total assets of the Maltese banking sector. Total assets of Finansbank Malta reached TRY 2.8 billion as at December 31, 2007 and its net profit as of December 31, 2007
is TRY 51.4 million.

Finans Leasing

Finans
Leasing was established in March 1990. As at December 31, 2007 Finans Leasing ranked third in the leasing sector with a total business volume representing a market share of
8.7%. Finans Leasing's target customer segment is SMEs and it was one of the first leasing companies in Turkey to identify the investment needs of SMEs, targeting them as a distinct market segment.
Finans Leasing has a diversified lease portfolio in terms of industries with the proportion of finance lease receivables as at December 31, 2007 of: construction (19.4%), agriculture (15.4%),
health (9.7%), manufacturing (9.5%), textiles (12.3%), transportation and communication (6.2%) and metallurgy and mining (10.6%). In 2007 Finans Leasing grew faster than the leasing sector in Turkey
as a whole. As at December 21, 2007, total assets of Finans Leasing reached TRY 1,181 million and its net profit was TRY 50.4 million compared to TRY 679 million and TRY
41.6 million respectively, in 2006.

Finans Portfolio Management

Finans
Portfolio Management was established in September 2000. As a financial product innovator, Finans Portfolio Management currently manages five Exchange Traded Funds, 11 Mutual
Funds, two Funds of Funds and one Closed-end Fund. Finans Portfolio Management also manages discretionary portfolios for high net worth individuals and select institutional clients. Finans
Portfolio Management's market share in the mutual funds industry (including ETFs) was 3.62% as at December 31, 2007. As at the same date, total assets amounted to TRY 15.9 million and
net profit (including ETFs) was TRY 3.5 million.

Finans Investment Trust

Finans
Investment Trust was established in 1995 and its shares have been traded on the ISE since 1996. It is a closed-end investment company, managing portfolios composed of
capital and money market instruments. Finans Investment Trust's total assets amounted to TRY 28.4 million as at December 31, 2007, and its net profit as of December 31, 2007 was
TRY 3.5 million.

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Selected
financial information with respect to Finansbank as at December 31, 2007 is provided in the table below:

|               |  | Turkish lira |  | US$(1)
|-------------- |  | ------------ |  | ------
|
|Total Assets   |  | 23,845       |  | 18,500
|Net Loans      |  | 16,721       |  | 12,973
|Total Deposits |  | 15,067       |  | 11,690
|Net Income     |  | 619          |  | 480   

---

Foreign Banking Operations

The Bank's foreign banking operations include banking subsidiaries in six countries: NBG Cyprus, Stopanska Banka A.D.Skopje, based in Skopje, FYROM,
United Bulgarian Bank ADSofia (UBB), with its headquarters in Sofia, Bulgaria, Banca Romaneasca SA based in Bucharest, Romania, Vojvodjanska in Serbia and the South African Bank of Athens
as well as other subsidiaries, mainly in the leasing sector. Our foreign banking operations contributed €372.3 million or 28.2% of net income to the Group and accounted for
€11,383.1 million or 12.5% of Group total assets. Likewise total gross loans were €8.4 billion at December 31, 2007, up 60.6% from
€5.2 billion at December 31, 2006, while deposits surpassed €7.6 billion at December 31, 2007, up 32.9% from
€5.7 billion at December 31, 2006.

Our
foreign banking network is described below. In the analysis that follows, all amounts are before elimination of intercompany transactions and balances.

National Bank of Greece S.A.: Foreign Branches

As at December 31, 2007, the Bank had 28 foreign branches in five countries, including one in the United Kingdom, one in Guernsey, 24 in Albania, one in
Cyprus and one in Egypt. Additionally, we have two overseas representative offices in Australia. The London branch principally serves large corporate and shipping clients and also offers private
banking services. The majority of assets and loans of the Bank attributable to our foreign branches are held in London. During 2007, we increased our branches in Albania from 13 as at
December 31, 2006 to 24 as at December 31, 2007. Total loans in our Albanian branch network increased by 93% (from €103 million as at December 31, 2006 to
€197 million as at December 31, 2007), while deposits increased by 43% (from €81 million as at December 31, 2006 to
€115 million as at December 31, 2007). Currently, the Bank's branches in Albania lend primarily to certain of the Bank's established Greek corporate clients operating in
that country, but also to certain local corporate clients that have significant liquid assets and other collateral.

The
table below provides selected financial information of the Bank's foreign branches as at and for the year ended December 31, 2007, on a total basis before consolidation
adjustments:

|               |  | EUR   |  | US$(1)
|-------------- |  | ----- |  | ------
|
|Total Assets   |  | 4,667 |  | 7,266 
|Net Loans      |  | 3,038 |  | 4,730 
|Total Deposits |  | 2,552 |  | 3,973 
|Net Income     |  | 101   |  | 157   

---

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The table above relates solely to the Bank's foreign branches and not to the branches of the Bank's foreign subsidiaries.

United Bulgarian Bank ADSofia (UBB)

United Bulgarian Bank ADSofia ("UBB") is a commercial bank with headquarters in Sofia, which provides retail and corporate finance services in
Bulgaria. We acquired 89.9% of the share capital of UBB in 2000, and currently hold a 99.9% interest in UBB. In 2007, the UBB branch network continued to expand, opening 56 branches in cities and
towns throughout Bulgaria and 5 in-store branches. During 2007, UBB opened seven business centers, dedicated entirely to servicing SME customers. At December 31, 2007, the UBB
distribution network included 229 units (37 full functional branches, 152 basic branches, 33 in-store branches and 7 business centers). In 2007, UBB recorded 81.4% growth in its loan
portfolio compared to 2006, due to a 93.7% growth in corporate loans and 69.3% growth in its retail loan portfolio. In 2007, UBB's market share in Bulgaria was 11.2% for corporate loans, 18.3% for
consumer loans and 18.5% for mortgage loans, while it maintained its market share of 10.1% in non-bank customer deposit base. As at December 31, 2007, UBB operated over
680 ATMs, representing a market share of approximately 16%, and over 5,600 POS terminals in Bulgaria, representing a market share of approximately 18%. During 2007, UBB was the bank with
the highest number (over 111,000) of issued international credit cards in Bulgaria under the logos of MasterCard, VISA and VISA Electron, realizing a respective market share of 35%. UBB also holds a
18% market share with respect to debit cards in Bulgaria.

Selected
financial information with respect to UBB as at and for the year ended December 31, 2007 is provided in the table below.

|               |  | Bulgarian leva |  | US$(1)
|-------------- |  | -------------- |  | ------
|
|Total Assets   |  | 6,122          |  | 4,864 
|Net Loans      |  | 4,900          |  | 3,893 
|Total Deposits |  | 4,643          |  | 3,689 
|Net Income     |  | 188            |  | 149   

---

Banca Romaneasca SA

Banca Romaneasca SA ("Banca Romaneasca") is a universal bank which provides a wide range of retail, SME and corporate banking services in Romania. We
acquired 81.7% of the share capital of Banca Romaneasca in October 2003. In order to support its further development, Banca Romaneasca implemented two share capital increases, following which our
participation in Banca Romaneasca increased to 88.7%. The European Bank for Reconstruction and Development ("EBRD") is the second largest shareholder of Banca Romaneasca, with 10.18% of its share
capital. In March 2008, the extraordinary general meeting of Banca Romaneasca's shareholders approved a share capital increase of RON 172.5 million, the subscription period of which was
completed on May 16, 2008, and to which both the Bank and EBRD subscribed. The capital raised was RON 172.5 million.

As
at December 31, 2007, Banca Romaneasca had a countrywide distribution network consisting of 122 banking units and operated a network of 146 ATMs. Banca Romaneasca was
the first bank in Romania to provide money-transfer services, as at December 31, 2007 offering such services in 960 locations across the country. Banca Romaneasca launched several new products
and services during 2007, primarily dedicated to SME and retail activity, and increased its overall (total assets) market share from 2.1% up to 2.7%, according to statistics published by the Central
Bank of Romania.

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Selected
financial information with respect to Banca Romaneasca as at and for the year ended December 31, 2007, is provided in the table below.

|               |  | Romanian Lei |  | US$(1)
|-------------- |  | ------------ |  | ------
|
|Total Assets   |  | 6,825        |  | 2,883 
|Net Loans      |  | 4,600        |  | 1,943 
|Total Deposits |  | 5,967        |  | 2,520 
|Net Income     |  | 40           |  | 17    

---

Stopanska Banka A.D.Skopje

Stopanska Banka A.D.Skopje ("Stopanska Banka") is a universal bank headquartered in Skopje and registered in FYROM that provides payment transfers,
brokerage, credit and deposit-taking services in FYROM and abroad. In 2000, we acquired a controlling interest in Stopanska Banka, and currently hold a 73.04% stake, while EBRD and IFC participate
holding a stake of 10.8% each, and the remaining 5.4% is held by other minor shareholders. Stopanska Banka operates the largest branch network in FYROM, with a dense country-wide network
of ATMs and POS terminals. Following its latest reorganization activities, Stopanska Banka currently has 25 branches, which in turn manage 35 sub-branches, and continues the
transformation of its branch network into modern sales outlets. Stopanska Banka is also a leader in e-banking within FYROM, promoting Internet and SMS banking and offering its clients
electronic payment facilities. Stopanska Banka aims to continue improving its loan portfolio by targeting high net worth customers, such as SMEs and large companies. As at December 31, 2007,
Stopanska Banka's market share in FYROM was 39.0% in retail lending, 28.7% in retail deposits, 22.6% in corporate lending and 28.1% in corporate deposits, according to statistics published by the
National Bank of FYROM.

Selected
financial information with respect to Stopanska Banka as at and for the year ended December 31, 2007, is provided in the table below:

|               |  | Macedonian dinars |  | US$(1)
|-------------- |  | ----------------- |  | ------
|
|Total Assets   |  | 54,851            |  | 1,383 
|Net Loans      |  | 32,680            |  | 824   
|Total Deposits |  | 47,031            |  | 1,186 
|Net Income     |  | 1,106             |  | 28    

---

National Bank of Greece (Cyprus) Ltd.

The National Bank of Greece (Cyprus) Ltd. ("NBG Cyprus"), which has its headquarters in Nicosia, has 16 branches, two satellite branches and three foreign
exchange bureaus. NBG Cyprus provides a wide range of commercial and retail banking services. In 2007, NBG Cyprus maintained its policy of growth of its loans and deposits portfolio through the
introduction of new mortgage and retail credit products.

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Selected
financial information with respect to NBG Cyprus as at and for the year ended December 31, 2007, is provided in the table below:

|               |  | Cyprus pounds |  | US$(1)
|-------------- |  | ------------- |  | ------
|
|Total Assets   |  | 630           |  | 1,675 
|Net Loans      |  | 338           |  | 900   
|Total Deposits |  | 580           |  | 1,543 
|Net Income     |  | 1             |  | 3     

---

The South African Bank of Athens Ltd.

The South African Bank of Athens Ltd. ("SABA"), which we founded in 1947, has ten branches across South Africa, primarily in urban centers. SABA offers
traditional commercial and retail banking services, with particular emphasis on retail and commercial banking services for the SME market in South Africa. In 2007, the Bank continued to attract new
business in the SME sector, increasing its loans (net of allowance for loan losses) by 66% compared to 2006.

Selected
financial information with respect to SABA as at and for the year ended December 31, 2007, is provided in the table below:

|               |  | South African rand |  | US$(1)
|-------------- |  | ------------------ |  | ------
|
|Total Assets   |  | 1,143              |  | 151   
|Net Loans      |  | 943                |  | 125   
|Total Deposits |  | 1,022              |  | 135   
|Net Income     |  | 12                 |  | 2     

---

Vojvodjanska Banka a.d. Novi Sad

In December 2006, we acquired a 99.4% stake in Vojvodjanska Banka a.d. Novi Sad ("Vojvodjanska"). In October 2007 NBG became the sole shareholder of Vojvodjanska.
Vojvodjanska is the ninth largest
Serbian bank in terms of assets and has the third largest branch network in the country with 169 branches.

Following
relevant decisions of the shareholders' general assemblies of Vojvodjanska and NBG Beograd, dated January 3, 2008, the latter has been absorbed by the former and the
merger was completed on February 14, 2008. As a result of this merger, our total presence in the Serbian market amounts to 204 branches.

Vojvodjanska's
(stand-alone) market shares in customer deposits and loans as at December 31, 2007 were approximately 4% and 5%, respectively. Furthermore, its 169 branches serve
over 1,097,000 private accounts and 84,000 SME and large company accounts. Vojvodjanska is also a leading issuer of Visa debit and credit cards and DinaCards and has a market share of approximately 7%
of Serbia's domestic and international payments.

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Selected
financial information with respect to Vojvodjanska and NBG Beograd on a consolidated basis as at December 31, 2007, is provided in the table below:

|               |  | Serbian dinars |  | US$(1)
|-------------- |  | -------------- |  | ------
|
|Total Assets   |  | 85,416         |  | 1,645 
|Net Loans      |  | 39,464         |  | 760   
|Total Deposits |  | 61,184         |  | 1,179 
|Net income     |  | 2,208          |  | 43    

---

In February 2007, the Bank's branch network in Serbia consisting of 24 branches became the NBG Beograd subsidiary, which was subsequently merged
with our other subsidiary bank in Serbia, Vojvodjanska, in February 2008.

Leasing Services

As part of its foreing banking operations, the Group offers Leasing services through certain of its foreign subsidiaries.

Interlease E.A.D.

Interlease E.A.D. ("Interlease"), a wholly-owned subsidiary of the Group, operates in the Bulgarian leasing industry. In 2002, Interlease established a subsidiary
company, Interlease Auto E.A.D., specializing in the car leasing sector. A major leasing provider in Bulgaria, Interlease achieved a market share of 28% and 32% in equipment and car leases,
respectively, in 2007. In 2007, Interlease achieved a 21% market share in the real estate sector. Income and total assets of the company have grown steadily. As at December 31, 2007,
Interlease's income before tax amounted to €8.4 million and total assets were approximately €420.5 million compared to
€5.9 million and €250 million, respectively, in 2006. In line with its cross-selling strategy, Interlease offers its leasing services in Bulgaria through
the Group's Bulgarian subsidiary, UBB. Interlease possesses a fully diversified client portfolio, consisting of lessees from almost all sectors of the country's economic activity, focusing on the
transportation and industrial equipment industries.

Eurial Leasing IFN S.A.

Eurial Leasing IFN S.A. ("Eurial"), operates in the leasing industry of Romania. In 2005, NBG acquired a 70% stake in Eurial. Before the acquisition,
Eurial operated primarily in the automobile leasing sector, being the major lessor of Peugeot automobiles in Romania. Following Interlease's success in Bulgaria, Eurial has adopted a strategy of
supporting its clientele via alternative financial services, together with cross-selling operations. The Group plans to enhance Eurial's structure and expand its activities to cover the full spectrum
of leasing services, making it one of the leading leasing companies in Romania. In 2007, Eurial achieved income before tax and total assets of €4.0 million and
€240.5 million respectively compared to €3.0 million and €104 million, respectively, in 2006, with a market share of 6%.

NBG Leasing d.o.o.Belgrade

NBG Leasing d.o.o.Belgrade ("NBGL"), a wholly-owned subsidiary of NBG, operates in the Serbian leasing market. Acquired in 2007, NBGL
operates in the automobile, commercial vehicle and equipment leasing sectors. Following the Group's success in the Bulgarian leasing market, NBGL has adopted the strategy of supporting its clientele
via alternative financial services, together with cross-

50

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selling
operations. In this aspect, NBGL established a subsidiary company, NBG Services d.o.o.Belgrade, in order to exploit additional income sources, such as operational leasing. In
2007, NBGL achieved €18.6 million of total assets having a market share of 2% and experiencing a loss of €481.9 thousand.

Future Expansion

We are currently evaluating potential acquisitions in SEE, Eastern Europe and the Southeastern Mediterranean region. See Item 4.B,
"Business OverviewStrategy".

Investment Banking and Global Investment & Private Banking

Investment Banking

In addition to our domestic activities, we also conduct investment banking business in London through NBGI, which also has a private equity and venture capital
business conducted in its London and Athens offices.

NBGI's
Debt Capital Markets team completed several key public transactions in 2007 while further expanding its private placement transactions across the countries of coverage. NBGI's key
debt capital markets deals included the arrangements and executions of the Hellenic Republic's new €4 billion 30-year bond and the Hellenic Republic's inaugural
€1 billion, 50-year private placement. The Debt Capital Markets team also successfully completed the €1.5 billion, two-year senior
bond for the Bank. The second half of 2007 was marked by the international credit crisis as well as by the slow-down of fixed income activities in Greece.

In
2007, NBGI's Debt Capital Markets team expanded its origination coverage in SEE and broadened both its product base (such as private placement financings and covered bonds) and its
client base.

2007
was also a successful year for NBGI's Equity Capital Markets team with NBGI playing an important role in a large number of Greek equity offerings. NBGI acted as a joint bookrunner
in the secondary offerings of OTE (€90 million), Halcor (€90 million), and the Hellenic Exchanges SA (€80 million). NBGI was
also engaged as a joint global co-ordinator in the IPO of Aegean Airlines (€543 million), held a co-lead manager role in the secondary offering of Greek
Postal Savings Bank (€510 million) and was a selling agent in the secondary offering of OTE (€1.1 billion). NBGI's success in placing Greek stock to
international investors extended beyond the ATHEX to include significant international transactions and building expertise in shipping initial public offerings ("IPOs"). NBGI played an instrumental
role in the London AIM-listed IPOs of Hellenic Carriers (US$200 million) as the lead manager and Globus Maritime (GBP 86 million) as a selling agent.

The
NBGI Corporate Finance Advisory team successfully undertook projects with major corporate clients in key transactions during 2007. NBGI advised Mytilineos on the merger of its energy
assets to form Endesa Hellas, one of the largest non-banking transactions in Greece of the past three years. NBGI also acted as the advisor of J&P Avax on the tender for ATHENA ATE. In
2007
NBGI forged productive cooperation with Finansbank's Investment Banking team, promoting cross-border transactions.

NBGI
had revenues of €16.3 million and €27.3 million in 2007 and 2006, respectively.

Stock Brokerage

National P&K Securities S.A. ("National P&K Securities") is our brokerage arm and was founded in 2007 following the merger of our former subsidiary
companies National Securities S.A. and P&K Securities S.A. National P&K Securities offers the full spectrum of investment services to both

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individual
and institutional customers and it commands a leading position in the Greek securities markets. As at December 31, 2007, National P&K Securities had a combined market share of 20.81%
(National Securities 10.01% and P&K Securities 10.80%) of trades brokered by total trading volume on the ATHEX, ranking first in terms of total trading volume, compared with a 16.78% market share held
by EFG Securities, and a 17.77% market share by Investment Bank of Greece. In 2006, National P&K Securities' combined market share was 23.87% (National Securities 11.62% and P&K Securities 12.25%).

The
provision of capital markets and advisory services in Greece has become increasingly competitive, with a number of banks and brokerage houses participating actively in this area.
However, we believe that our plan to reorganize our business to combine all of the investment banking activities of the Group and our existing presence in the marketplace will enable us to capture a
significant share of any growth in the Greek market for investment banking and brokerage services.

Venture Capital

In 2007, NBGI implemented a number of structural changes, increasing its funds under management to €570 million from
€420 million in 2006 (including undrawn amounts). Its activities focused on three main investment areas: the United Kingdom and Western Europe, Greece and other SEE countries,
and technology. Funds are managed by NBGI's subsidiary NBGI Private Equity Limited ("NBGI Private Equity").

NBGI Private Equity Limited

NBGI Private Equity, has offices in London, Athens, Paris and Bucharest and manages the following private equity funds: NBG Private Equity Fund LP, with an
initial capitalization of €100 million, and NBGI Private Equity Fund II LP, with a capitalization of €150 million, both investing in small to
mid-size "traditional economy" companies and with a geographic investment focus on the United Kingdom and continental Europe; NBG South Eastern Europe Fund LP, with a capitalization
of €100 million; the NBGI SEE Development Capital Fund LP, also with a capitalization of €100 million and NBGI SEE Real Estate LP, with a
capitalization of €50 million, both investing in companies in Greece and in companies which are headquartered or have a significant part of their activities in Central and
Eastern Europe (with a focus on Balkan countries), the former Soviet Union, Cyprus and other markets in SEE; NBG Technology LP, with a capitalization of €42 million, and
NBGI Technology Fund II LP, with a capitalization of €30 million, both investing in early stage investments in information technology, telecommunications and new media
throughout Europe.

NBG Private Equity Fund LP and NBGI Private Equity Fund II LP

The NBG Private Equity Fund LP is a €100 million fund created in August 2000 to invest in small- to medium-size
traditional economy United Kingdom companies. The Bank is the sole investor in the fund.

During
2007, the NBG Private Equity Fund LP ("UK Fund I") made three further successful exits, and now has an excellent track record of exiting six of its 13 investments realizing
an overall gross IRR of 76% and a money multiple of 6.9x. During the year, UK Fund I made its first ever exit by IPO, with the admission of "Superglass Holdings plc" to the Official List on the
London Stock Exchange in June 2007.

NBGI
Private Equity Fund II LP ("UK Fund II") held its first closing on June 20, 2007 at £62.4 million with NBG acting as cornerstone investor with
external investors also participating. With further investment from external investors, the fund size is expected to grow to over £100 million, which has been underwritten by NBG.
The UK Fund II made its first investment in 2007, investing £5.9 million in its first investee company.

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NBG South Eastern Europe Fund LP, NBGI SEE Development Capital Fund LP and NBGI SEE Real Estate Fund LP

The NBG Greek Private Equity Fund LP was originally established in February 2004 with a capital commitment of €20 million from the
Bank. It is a UK limited partnership. In 2005 this fund was restructured and its scope widened in order for it to take advantage of the opportunities arising in SEE markets. In March 2006 this fund
was renamed to NBG South Eastern Europe Fund LP and the commitment of the Bank, the sole investor in the fund, was increased to €100 million. As at the end of 2007, the
NBG South Eastern Europe Fund LP has made two investments in Dodoni Ice-Cream SA and AKTO SA.

The
NBGI SEE Development Capital Fund LP sits alongside the NBG South Eastern Europe Fund LP and also has a commitment of €100 million from the Bank,
the sole investor in the fund. This fund was formally closed in March 2007 and will primarily seek to invest in SMEs which are incorporated in or whose business operations are in Greece and in
companies which are headquartered in or have a significant part of their activities in Central and Eastern Europe (with a focus on Balkan countries), the former Soviet Union, Cyprus and other markets
which, at the discretion of the fund's manager, are considered to be in the SEE area. Both of these funds are structured as English limited partnerships.

In
Greece and the SEE area, NBG Private Equity Ltd now manages targeted funds of €250 million and operates from London, Athens, Romania and Bulgaria to take
advantage of the buy-out and expansion capital opportunities that these markets provide. During 2007, NBG SEE Fund and NBG SEE Development Capital Fund made its first three investments
totaling €20.7 million, in two buy-outs and one expansion capital investment, all in Greece.

NBGI
SEE Real Estate Fund LP invests in small to mid-size real estate or real estate owning companies, with a geographic focus in the SEE area. The fund's first
closing was held on September 19, 2007 with NBG as the sole investor committing €50 million. The target size of the fund is €100 million with
further commitments sought from external investors for the second closing.

NBG Technology LP

NBG Technology LP is a UK limited partnership, established in 2001 and currently has capital commitments of €42 million, half of
which have been committed by the Bank. NBG Technology LP aims to invest primarily in the equity or equity-related capital of unlisted SMEs operating in the technology, media and
telecommunication sectors throughout Europe. NBGI Private
Equity Limited is the manager of the fund and employs a specialist team of investment professionals to manage the Fund, under the brand "NBGI Ventures".

In
2007, NBG Technology LP completed its first exit in 2007, successfully selling its remaining shareholding in Direct Energie SA in November. The successor fund, the NBGI
Technology Fund II LP, was closed in August 2007 at €30 million, with NBG as the sole investor, but with the aim of attracting external investors up to final close with a
minimum target of €60 million. As at December 31, 2007, NBG Technology Fund II LP had made three new investments, committing a total of
€8.7 million.

NBG Greek Fund Limited

NBG Greek Fund Limited, a Cypriot company wholly-owned by the Bank, was established in 1998 with committed capital of €44 million. The
scope of NBG Greek Fund Limited is to invest primarily in rapidly growing Greek companies. In 2004, NBG Greek Fund Limited reduced its committed capital down to €15 million and
is divesting its current holdings which, at the end of 2007, had an estimated market value of about €2 million.

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Insurance

We
provide insurance services primarily through our wholly-owned subsidiary, Ethniki Hellenic General Insurance S.A. ("EH"). EH offers a full range of products such as life,
accident and health insurance for individuals and groups, fire, calamity, credit, motor, marine hull and cargo insurance, and general third party liability. Through the expertise of its personnel and
the reorganization of its internal procedures, EH provides advanced insurance solutions that can meet the demands of the increasingly competitive Greek insurance market.

EH
provides insurance products through 58 branch offices, 165 sales agencies with 2,473 tied agents, who sell only EH Insurance products, and 1,341 independent insurance brokers. In
addition, insurance products are distributed to consumers through the Bank's extensive branch network.

In
the Greek insurance market, EH further strengthened its leading position during 2007 by increasing its market share to 16.7% compared to 15.8% in 2006. Particularly, in regards to
Non-Life insurance business, gross written premiums reached €403.9 million in 2007 compared to €391.7 million in 2006, ranking EH in the first
place of the Greek market with a market share of 14.7%, well ahead of its closest competitor, Interamerican EEA Non-Life, which had a market share of 5.9%.

The
increase in gross written premiums in the Property business reached 13%, outperforming the 8% market increase. Moreover, 52.4% of its portfolio relates to household property cover.
Although the Motor business decreased compared to the previous year, EH's new commercial policy in 2007 achieved an increase of 40% in new applications and a 12% reduction in the cancellations
compared to 2006.

In
the Life business, gross written premiums reached €439.5 million compared to €343.5 million in 2006, (before elimination of intercompany
transactions and balances), an increase of 28.0%. This achievement is mainly attributed to the bancassurance products "Prostheto+" and "Frontizo", with €129.7 million in
premiums in 2007 compared to €102.6 million in 2006.

In
addition, Individual Life new business increased by 24%, compared to 2006, outperforming the market. Insurance penetration in the Bank's mortgages portfolio reached approximately 85%
for fire and allied perils and 70% for term life coverage.

Moreover,
EH's agency sales network further improved its mortgage loan sales, while its assure banking annual sales target was exceeded by 18%.

With
a view towards expansion in SEE, EH operates two Cypriot subsidiaries in collaboration with NBG Cyprus which are active in Life and Non-Life insurance business. EH also
operates in Romania, where it holds a 95% share in Societate Comerciala Asigurari Garanta S.A. ("Garanta"), following the merger of another subsidiary of EH in Romania, NBG Asigurari, in to
Garanta, on June 20, 2007. Garanta offers consumer credit insurance and personal accident products through the network of four banks, namely Banca Romaneasca, Alpha Bank Romania, Pireaus Bank
Romania and Romextera.

In
Bulgaria, EH, in partnership with UBB and American International Group Inc. ("AIG") operate two insurance companies: UBB AIG Life Insurance Company and UBB AIG
Insurance & Reinsurance Company, one for Life and one for Non-life insurance, respectively. EH and UBB each hold a 30% share of each company's share capital. The main scope of these
companies is to promote bancassurance products in the Bulgarian market. Additionally, on March 27, 2007, EH, in partnership with UBB, founded UBBInsurance Broker AD, and holds 20%
of its share capital.

National
Insurance Brokerage SA, a Greek insurance broker acquired in 2005 by EH, contributes to the further expansion of services provided in the maritime and aviation insurance
markets, as well as for risks regarding port-structuring projects.

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In
May 2007, Finansbank applied to the General Directorate of Insurance in Turkey and received permission to establish Finans Emeklilik ve Hayat A.S. ("Finans Pension"). This new company
has completed its corporate organization and obtained a license to conduct life, personal accident and pension insurance business. Finans Pension's total assets amounted to TRY 11.1 million as
at December 31, 2007, and its net loss as of December 31, 2007 was TRY 1.52 million.

Bancassurance Products

We also provide insurance services through another of our subsidiaries, NBG Bancassurance S.A. ("NBG Bancassurance"). NBG Bancassurance acts as an agent
providing intermediary services between our customers and insurance underwriters. NBG Bancassurance assumes no insurance underwriting risk itself.

In
2007, NBG Bancassurance continued its penetration in the area of bancassurance, providing innovative products that aim both to improve efficiencies to our extensive network and
develop synergies between Group companies.

NBG
Bancassurance provides two categories of products:



Gross
written premiums of bancassurance products of EH Insurance sold through the Bank in 2007 were €198.3 million, an increase of 52.2% from
€130.3 million in 2006.

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Bancassurance products contributed approximately 25.1% of EH's total turnover in 2007, compared to 18.9% in 2006. In particular, bancassurance life products accounted for approximately
36% of EH's total life insurance production for 2007.

Based
on statistics provided by the Association of Greek Insurance Companies, we believe that the Greek insurance market is still immature and we consider this market to have strong
growth potential. The share of insurance premium to GDP in Greece is 2.1%, below the corresponding EU-wide share.

OtherGreek Operations

Consulting and Professional Training

Ethnodata S.A. ("Ethnodata") and its subsidiary, Ethnoplan S.A. ("Ethnoplan"), both Group companies, provide consulting and development in the area
of information systems and software to other companies in the Group and to third parties. In addition, the Bank runs a training center for its employees as well as for other banks in Greece and
abroad. The Bank's training center offers training courses and participates in programs funded by the EU.

We
also engage in business consultancy services through Planet S.A., a business consultancy firm based in Athens in which the Bank holds a 31.18% stake.

Hotel Business

NBG has a strong presence in the tourism sector, mainly through the Bank's subsidiary, Astir Palace Vouliagmenis S.A. (the "Astir Palace"), owner of the
Astir Palace Hotel Complex, which is currently under the management of Starwood Hotels & Resorts Worldwide Inc.

In
2007, Astir Palace also invested €11.1 million in renovations. Major investment projects currently in progress include the full restoration of the hotel's
bungalows, the "Club House" restaurant and "Astir Beach". The 165-room Afrodite Hotel is currently undergoing an extensive renovation that will eventually be rebranded as the "W Athens" Hotel.

Significant Equity Method Participations

Our equity method investment portfolio includes participations in Greek corporations.

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The
following table sets out equity participations in which we hold in excess of 20% but less than 50%, or in which we do not have control as at December 31, 2007:

|    |  |                                           |  | December 31, 2007
|--- |  | ----------------------------------------- |  | -----------------
|
|
|1.  |  | Social Securities Funds Management        |  | Greece           
|2.  |  | Phosphate Fertilizers Industry S.A        |  | Greece           
|3.  |  | Larco S.A.                                |  | Greece           
|4.  |  | Siemens Entreprise Communications A.E.    |  | Greece           
|5.  |  | Eviop Tempo S.A.                          |  | Greece           
|6.  |  | Teiresias S.A.                            |  | Greece           
|7.  |  | Hellenic Countryside S.A.                 |  | Greece           
|8.  |  | Pella S.A.                                |  | Greece           
|9.  |  | Planet S.A                                |  | Greece           
|10. |  | Europa Insurance Co SA                    |  | Greece           
|11. |  | UBB AIG Insurance and Reinsurance Company |  | Bulgaria         
|12. |  | UBB AIG Life Insurance Company            |  | Bulgaria         
|13. |  | Drujestvo za Kasova Deinost A.D.          |  | Bulgaria         

---

Equity participations in which the percent of ownership interest held by the Group is less than 20% are accounted as portfolio investments in
accordance with SFAS 115 "Accounting for certain investments in debt and equity securities", as the Group does not have the ability to influence the operations of the investees. Equity
participations in which the percent of ownership interest held by the Group is greater than 20% but less than 50%, or which are jointly controlled by the Group and other entities, are accounted for
using the equity method because the Group can influence the operations of the investees.

UBB
AIG Insurance and Reinsurance Company and UBB AIG Life Insurance Company are jointly controlled by Group companies UBB and EH and companies of AIG.

Intellectual property, contracts and manufacturing processes

Our business and profitability are not materially dependent on patents or licenses, industrial, commercial or financial contracts or new manufacturing processes.

Competition

We compete with other banks, financial services firms and a wide range of insurance companies in providing mutual fund services, capital markets and advisory
services and insurance. Internationally, we compete with banking firms of varying sizes and geographic scope.

The
Bank itself competes with national, regional and foreign banks throughout Greece and abroad. There were 47 universal banks (i.e. banks that provide all types of banking
services, including retail, commercial and investment banking), both domestic and foreign, in Greece as at December 31, 2007. The top six domestic universal banking groups in Greece accounted
for approximately 81% of the total assets attributable to domestic and foreign universal banks as at December 31, 2007.

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For
more information on the breakdown of assets, loans outstanding and deposits in the universal banking sector for the Bank and our five main competitors in Greece, please refer to
"Overview of the Banking Services Sector in GreeceCompetition" in this Item 4.B.

Regulation and Supervision of Banks in Greece

The Bank of Greece is the central bank in Greece. It is responsible for the licensing and supervision of credit institutions in Greece, in accordance with Law
3601/2007, Law 2076/1992, Law 2832/2000 (Deposit Guarantee Fund), Law 2331/1995 (Anti-money laundering) and other relevant laws of Greece, each as amended. It also has supervision and
regulatory powers relating to the operation of credit institutions in Greece.

The
regulation of credit institutions under Greek law was substantially amended pursuant to the following:



Credit
institutions operating in Greece are obliged to observe the liquidity ratios prescribed by the Bank of Greece (Act No. 2560/1.4.2005 of the Governor of the Bank of Greece),
maintain efficient internal audit, compliance and risk management systems and procedures (Act No. 2577/9.3.2006 of the Governor of the Bank of Greece, as amended by Act No. 1943/2007 of
the Governor of the Bank of Greece and Decision No. 1839/2006 of the Bank of Greece), submit to the Bank of Greece periodic reports and statements and provide it with such further information
as it may require, and (in connection with certain operations or activities) make notifications to or request the prior approval (as the case may be) of the Bank of Greece, in each case in accordance
with the applicable laws of Greece and the relevant Acts, Decisions and Circulars of the Bank of Greece (each as in force from time to time).

Pursuant
to Law 3601/2007, the Bank of Greece Governor's Acts and other relevant laws of Greece, the Bank of Greece has the power to conduct audits and inspect the books and records of
credit
institutions. In case of breach, the Bank of Greece is empowered to require the relevant credit institution to take appropriate measures to remedy the breach, impose fines, appoint an administrator
and finally (where the breach cannot be remedied or in case of insolvency) revoke the license of the credit institution and place it into special liquidation under its supervision. In the case of
insufficient liquidity of a credit institution, the Bank of Greece may order a mandatory extension of its due and payable obligations for a period not exceeding two months (which can be extended for a
further one-month period) and appoint an administrator under its supervision.

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In
accordance with Greek Law 2832/2000, in cases of breach of the regulatory framework, in addition to other powers to impose sanctions under specific laws, the Bank of Greece has the
general power to impose sanctions against credit institutions.

History and Deregulation

Historically, the Greek banking system was subject to strict regulatory requirements, including restrictions on:



Since
the late 1980s, but predominantly in the early 1990s, a gradual relaxation of the strict regulatory environment in Greece took place due to:



Liberalization
of capital movements, through implementation of the relevant EU Directives and in particular the Second EU Banking Directive, also contributed substantially to
deregulation.

Interest Rates

Beginning in 1987, minimum interest rates gradually replaced interest rates previously imposed by the central bank. Administratively determined interest rates
were finally abolished in 1992. The removal on March 8, 1992, of an established minimum rate for savings deposits was the first step towards full deregulation of bank interest rates. Since
then, Greek banks have been free to negotiate interest rates with customers based on market conditions. In addition, a number of limitations on bank financing of certain economic activities were
eliminated in 1991. As a consequence, credit institutions were allowed to negotiate freely and grant new types of loans without limitations on the rate of interest including loans for:



Limitations
apply to the compounding of interest. In particular, the compounding of interest with respect to bank loans and credits only applies if the relevant agreement so provides and
is subject to limitations that apply under article 30 of Law 2789/2000 (as amended by article 42 of Law 2912/2001 and article 47 of Law 2873/2000) and article 39 of Law
3259/2004. See Item 5, "Operating and Financial Review and ProspectsKey Factors Affecting our Results of
OperationsCompounding Law".

Foreign Exchange

Deregulation of the Greek financial services sector was accelerated by adoption of Greek Presidential Decrees 96/1993 (and corresponding Acts of the Governor of
the Bank of Greece No. 2199

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2200,
2201/07.03.1993), 104/1994 (and corresponding Acts of the Governor of the Bank of Greece No. 2301, 2302, 2303/16.05.1994) and Greek Law 2076/1992 (implementing the second EU Banking
Directive). Greek Law 2076/1992 decriminalized violations of foreign exchange regulations. Since 1991, borrowers have been permitted to borrow in foreign currencies for all legitimate business
purposes at interest rates and on terms freely negotiated between the parties. Beginning in January 1992, banks licensed in Greece to engage in foreign exchange transactions were permitted to enter
into spot, forward, swap and similar transactions in the foreign exchange market, pursuant to Act 1986/1991 of the Governor of the Bank of Greece.

In
1994, individuals and legal entities in Greece could, pursuant to Act 2344/94 of the Governor of the Bank of Greece, for the first time engage freely in foreign currency transactions
in foreign countries by filing an application with any bank. Credit institutions in Greece were also authorized to accept deposits made by natural persons and legal entities in foreign currency.

Starting
in 1991, Greek foreign exchange restrictions were gradually relaxed, and were totally eliminated concurrently with the adoption of the euro on January 1, 2001. A 2%
requirement of re-deposit and assignment, which currently applies to deposits in euro, applies to foreign currency deposits as well.

Effective
January 1, 2001, credit institutions operating in Greece and authorized to enter into foreign currency transactions can freely enter into transactions of any type in
foreign currencies and foreign notes, on their own account and at their own risk, in accordance with the provisions in force.

The
foreign exchange rates against the euro are published on a daily basis by the European Central Bank.

Secured Lending

Since 1992, Greek Law 2076/1992, as amended by Greek Law 3601/2007, has permitted mortgage banks to grant to customers loans and credit that are secured by Greek
real and personal property and certain types of personal security, such as cash.

Mortgage
lending is extended mostly on the basis of pre-notation filings ("prosimiosi"), which are less expensive and easier
to record than mortgages, and may be converted into full mortgages upon receiving a judgment subject to appeal only before the Hellenic Supreme Court from the relevant Greek court in the event of
default.

Compulsory Deposits with the Central Bank

The compulsory reserve requirement framework of the Bank of Greece has been altered in line with Eurosystem regulations. Effective July 10, 2000, reserve
ratios are determined by category of liabilities and replace the single reserve ratio of 12% previously in force for commercial banks. The reserve ratio is set at 2% for all categories of liabilities
comprising the reserve base, with the exception of the following liabilities to which a zero ratio applies:



This
requirement applies to all credit institutions.

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Guidelines for Risk-based Capital Requirements

After a long period of consultation and cooperation among international banks and regulatory authorities, the Basel Committee on Banking Supervision issued in
June 2004 a revised capital adequacy framework ("International Convergence of Capital Measurement and Capital Standards"), while in November 2005, the Committee issued its final proposals on the new
capital standards, also known as the Basel II accord. Basel II promotes the adoption of stronger risk management practices and introduces more risk-sensitive approaches for the calculation
of capital requirements that are conceptually sound and at the same time pay due regard to the sophistication level of risk management systems and methodologies that are applied by banks.

The
revised framework retains key elements of the 1988 capital adequacy framework, including the general requirement for banks to hold total capital equivalent to at least 8% of their
risk-weighted assets, the basic structure of the 1996 Market Risk Amendment regarding the treatment of market risk and the definition of eligible capital.

A
significant innovation of the revised framework is the greater use of assessments of risk provided by banks' internal systems as inputs to capital calculations. In taking this step,
the framework is also putting forward a detailed set of minimum requirements designed to ensure the integrity of these internal risk assessments. The revised framework introduces capital requirements
for operational risk and also (through Pillar II) directs and expects banks to establish an internal capital adequacy assessment process taking into account both the Pillar I risks (market,
credit and operational) as well as other risks including but not limited to liquidity risk, concentration risk, interest rate risk in the banking book and strategic risk.

The
revised framework provides a range of options of escalated sophistication for determining the capital requirements for credit risk and operational risk to allow banks and supervisors
to select
approaches that are most appropriate for their operations and their financial market infrastructure. Furthermore, through the third Pillar, Basel II significantly enhances the requirements for market
disclosures on both quantitative and qualitative aspects of risk management practices and capital adequacy.

The
framework of Basel II was incorporated in the EU laws in June 2006 with the Directives 2006/48 and 2006/49. These European Directives were incorporated in the Greek law in August
2007 with Law 3601/2007. Following the adoption of Law 3601/2007 on August 20, 2007, the Bank of Greece issued ten Governor's Acts specifying the details for the implementation of Basel II,
which took effect from January 1, 2008. As a result of the adoption of these Directives by the Bank of Greece, we may be required to maintain higher levels of capital, which could decrease our
operational flexibility and increase our financing costs. Consequently, we cannot assure you that Basel II will not have a material adverse effect on our financial condition or results of operations
in the future. The new regulatory framework is expected to be amended within 2008 or during the first semester of 2009 (see the public consultation paper issued by the European Commission to the
Capital Requirements Directive ("CRD"), consisting of Directives 2006/48/EC and 2006/49/EC).

Additional Reporting Requirements

Up to December 31, 2007, all credit institutions in Greece were required to provide the Bank of Greece with: (1) a quarterly report on capital
adequacy; (2) a quarterly report on profitability and exposure to banking risks (pursuant to Annexes 2 and 3 of Act No. 1313/88 amended by Act No. 2563/05);
(3) quarterly data relating to open currency positions (pursuant to Act No. 2291/94, amended by resolution No 176/18.6.04 of the Banking and Credit Affairs Committee); (4) a
quarterly report on loan loss reserves pursuant to Act No. 2442/99 (amended by Act No. 2513/03 and 2565/05); (5) a quarterly report on liquidity pursuant to Act No. 2156/92
(amended by Act No. 2560/05); (6) a quarterly report on cross-border credit exposures pursuant to Act No. 2520/03; (7) a general annual

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internal
audit report (pursuant to Act No. 2438/98); (8) a quarterly report on large exposures pursuant to Act No. 2246/93; (9) a semi-annual report on large
debtors pursuant to Bank of Greece, Banking and Credit Affairs Committee resolutions 485/91, 540/94, 159/03 and 915/03; (10) a semi-annual report on credit institution exposures
pursuant to Act No. 2563/05; (11) a quarterly report on securitization pursuant to Act No. 2563/05; and (12) a semi-annual report on hedge funds pursuant to Act
No. 2563/05.

Following
the adoption of Basel II guidelines, the Bank of Greece recently issued a Governor's Act (2606/21.2.2008) determining the new reporting requirements for credit institutions in
Greece. The new requirements include the following sets of reports:



The
new reporting framework is put into effect for data with reference date from March 31, 2008.

Deposit Guarantee Fund

In January 1993, the Greek Parliament adopted Law 2114/1993 on the introduction of a deposit protection fund. This Law was repealed in July 1995 by the adoption
of Greek Law 2324/1995, which took into account EU Council Directive 1994/19/EC on deposit guarantee schemes, and was further supplemented in June 2000 by the adoption of Greek Law 2832/2000. The
Greek deposit guarantee fund took effect in September 1995. Currently, the fund, which is a private entity according to Greek Law 2832/2000, is administered jointly by the Bank of Greece, the Hellenic
Bank Association, the Ministry of Economy and Finance and the Association of Greek Cooperative Banks.

The
Hellenic Deposit Guarantee Fund is funded by annual contributions of participating credit institutions (and cooperative banks pursuant to Greek Law 2832/2000 and Presidential Decree
329/2000). The level of each participant's annual contribution is generally determined according to certain percentages applied to the total amount of eligible deposits. If accumulated funds are not
sufficient to cover the claimants whose deposits become unavailable, participants may be required to pay an additional contribution. However, this contribution may not exceed an amount equal to 300%
of a bank's last annual contribution. This additional contribution is set off against the annual contributions of following years. Greek law adopted the minimum level of coverage provided by the EU
Directive,

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which
amounts to €20,000 per depositor per credit institution. Accordingly, credit institutions in EU member states that belong to a system offering a higher level of coverage have a
competitive advantage compared to Greek banks.

Prohibition of Money Laundering and Terrorist Financing

Greece, as a member of the Financial Action Task Force ("FATF") and as a member state of the EU, fully complies with FATF recommendations and the relevant EU
legal framework.

Specifically:

In
August 1995, the Greek Parliament adopted Law 2331/1995 (amended by Laws 2479/1997, 2515/1997 and 3424/2005), which prohibits the use of the financial system to legitimize revenues
generated from illegal activities, and implements EU Council Directive 91/308. The main provisions of Greek legislation on money laundering are as follows:



In
July 2002, the Greek Parliament adopted Law 3034/2002, which implemented the International Convention for the Suppression of the Financing of Terrorism, with which we are fully
compliant. Additionally, we comply with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (known as the "USA PATRIOT Act of
2001"), which took effect in October 2001 and which has implemented a range of new anti-money laundering requirements on banks and other financial services institutions worldwide.

On
December 13, 2005, Law 3424 was adopted by the Greek Parliament, which amended and supplemented the existing legislation on the prevention of money laundering (Law 2331/95) and
terrorist financing (Law 3034/2002), and harmonized Greek legislation with Directive 2001/97/EC.

Furthermore,
the Bank of Greece, our supervisory body, having taken into consideration the need for further specialization of the said framework, through its Banking and Credit Affairs
Committee issued its Decision No 231/4/13.10.2006 with a view to preventing the use of the financial system for the purposes of money laundering and terrorist financing.

This
Decision came into force on November 3, 2006, as Annex 4 "Prevention of the use of the financial system for the purpose of money laundering and terrorist financing" of
the Bank of Greece Governor's Act No 2577 of March 9, 2006 regarding the "Framework of operation principles and assessment criteria for the organization and Internal Control Systems of
financial institutions and their managing officers' respective functions" and was recently amended by the Bank of Greece through its Banking and Credit Affairs Committee resolutions No 242/6/4.5.2007
and No 257/22.2.2008.

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Annex 4
of the Governor's Act No 2577/9.3.2006 is in line with the third AML/CFT Directive 2005/60EU according to which all EU member states should fully comply by
December 15, 2007 and also implements FATF's 9 Special Recommendations on Terrorist Financing.

Finally,
Regulation (EC) No 1781/2006 of the European Parliament and European Council of November 15, 2006 on information on the payer accompanying transfer of funds is binding in
its entirety and is directly applicable in Greece.

Equity Participation by Banks

Banks must follow certain procedures regarding holdings in other companies:

Pursuant
to Law 3601/2007 credit institutions may not have a qualifying holding, the amount of which exceeds 15% of its own funds in an undertaking, that is not a credit institution, a
financial institution, an insurance or re-insurance company, an investment firm or an undertaking carrying on activities which are a direct extension of banking or concern services
ancillary to banking. The total amount of a credit institution's qualifying holdings in such undertakings may not exceed 60% of its own funds. Qualifying holding for the purposes of the Law means a
direct or indirect holding in an undertaking which represents 10% or more of the capital or the voting rights, or which makes it possible to exercise a significant influence over the management of
that undertaking.

For
the calculation of the above thresholds, the following shares or holdings are not taken into account:



The
above thresholds or the time limits referred to above may be exceeded in exceptional cases following a decision of the Bank of Greece to that effect, provided that the credit
institution either increases its own funds or takes equivalent measures. The Bank of Greece may also allow the thresholds and the time limits to be exceeded, provided that the excess is fully covered
by own funds which are not taken into account for the calculation of the capital adequacy ratio.

Central bank:According to the Bank of Greece Act 2604/4.2.2008, credit institutions must obtain central bank prior approval
to acquire or increase a qualifying holding in the share capital of credit institutions, financial institutions, insurance and re-insurance companies, investment firms, information
technology companies, financial data collection and processing companies, asset and liability management companies, real property management companies, paying systems management companies and external
credit assessment institutions. The provisions of such Act do not apply to branches of credit institutions with their registered seat in a country of the European Economic Area, or outside the
European Economic area provided that the Bank of Greece has recognised the equivalency of their supervisory regime. Qualifying holding for the purposes of the Act means a direct or indirect holding in
an undertaking which represents 10% or more of the capital or the voting rights, or which makes it possible to exercise a significant influence over the management of that undertaking, whereas
indirect holding means holding by a subsidiary of the credit institution.

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Prior approval for the acquisition or increase of a qualifying holding is not required in any of the following circumstances:



Competition Commission.Subject to EU regulations, new and significant holdings (concentrations) must be reported to the
Greek Competition Commission according to Greek Law 703/1977, as in force.

The
HCMC and the ATHEX must be notified once certain ownership thresholds are crossed with respect to listed companies.

Strategy

The Business Plan 2005-2007 and Business Plan 2007-2009 targets discussed in this section are based on the Bank's financial statements
prepared in accordance with IFRS.

Retail Banking

Although business has expanded substantially in recent years, the domestic banking market still offers attractive growth margins in the retail segment. In 2007,
the average ratio of household funding-to-GDP stood at 43% compared with 54% for the Eurozone as a whole. Furthermore, the

65

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robust
growth of the Greek economy and the resulting increase in employment and per capita income have generated the conditions necessary for further expansion in lending to households.

We
intend to further strengthen our leading position in retail banking by exploiting our broad deposit baseone of our key competitive advantageswhich enables us
also to increase cross-selling potential at the Group level, in particular retail products and bancassurance.

One
of our key competitive advantages is our leading position in mortgage lending, with a share of approximately one fourth of the market. Notably, in 2007, we lent
€4.0 billion in new mortgages, as our total mortgage portfolio grew to €15.7 billion. This was due to the extensive branch network, customer loyalty and
the innovative products that the Bank offers. We aim to maintain our market share and exploit alternative delivery channels, particularly targeting construction companies and estate agencies.

We
attach particular importance to small enterprises. In 2007, the dynamic penetration in the small enterprise market resulted to the increase of the loan book by 24% to
€3.7 billion and the widening of our clientele by 4,500 new customers. The total number of small enterprise customers reached 56,000 at the end of 2007.

As
we upgrade our branch operations, we have improved services to customers. Affluent individuals and SMEs are served by Customer Relationship Managers ("CRMs") who undertake to attend
to their overall banking needs. The CRMs have the know-how vis-à-vis the full set of products of the Group and are qualified to identify and
plan the financial needs of the customer. This new model has been implemented in almost the entire NBG branch network, while in 2007 it extended to affluent retail customers. Through this model, we
have made significant improvements in customer service, as we can now offer more personalized services to SMEs and affluent individuals. The benefits for the Group focus on growth in business with
existing customers (i.e. increases in loan balances and cross-selling) as well as the attraction of new customers.

Investment servicesInsurance

In the area of investment services, in early 2007, we completed our acquisition of P&K Investment Services (including its subsidiaries P&K Securities and P&K
MFMC) with a view to creating the largest integrated securities firm in SEE. Operating in the spheres of investment banking, asset management and brokerage, P&K Investment Services has a wide customer
base comprising companies, individuals and institutional investors in Greece and abroad, and is noted for the quality of the services provided. For further information, see Item 4.B,
"Business OverviewInvestment Banking and Global Investment and Private BankingStock Brokerage".

In
asset management, efforts will be stepped up to enhance the mix of higher performing fund categories, while special emphasis will be placed on exploiting our extensive branch network
as a sales channel. With respect to insurance, besides the benefits that we will reap from the long-term rationalization of domestic market penetration, we expect to achieve significant
synergies in the international markets. For instance, in Turkey, the Group launched Finans Pension in 2007; in Romania we will leverage the newly acquired Alpha Insurance; and in Bulgaria
collaboration will proceed jointly with AIG.

In
bancassurance, we intend to exploit the synergies derived from our broad customer base. The key targets for the three-year period 2007-2009 are to enhance the
performance of our insurance business by better leveraging the sales network, launching new products, strengthening incentives across the sales network and revising pricing policy.

Acquisitions in SEE and Turkey

In view of the fact that banking penetration levels in Greece in the medium term are maturing, and due to the limited scale of the Greek market, we are looking to
expand in markets that present

66

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lower
credit penetration and bigger margins for growth. To this end, we succeeded in substantially strengthening our presence in the wider region of SEE in 2006. Foreseeing the rapid developments that
are currently taking place in the international environment and the need to expand into new dynamic markets that offer growth at levels similar to those of other major banks operating on a European
level, we made two important acquisitions in 2006, in Turkey and Serbia.

The
acquisition of Finansbank signals the consolidation of our presence in SEE and Turkey, giving us access to a Turkish market of 70 million inhabitants, more than double the
number prior to the acquisition.

In
December 2006, we acquired a 99% shareholding in Vojvodjanska. This was Serbia's biggest sale to date of a state-controlled bank. Through the acquisition of Vojvodjanska, the second
largest bank in Serbia in terms of branch network and sixth largest in terms of assets, and with over 600,000 retail and 60,000 business customers, we strengthened our presence in the Serbian market,
increasing the number of Serbian branches to 204 and our market share in deposits to 6% and 7% in lending, thus making Vojvodjanska one of Serbia's leading banks. See Item 4.A,
"History and Development of the Company".

For
2009, our target is for the Group's SEE and Turkish businesses to generate approximately 45% of total Group profitability, while over 60% of our branches and employees will be
outside Greece. These targets will be achieved despite the expected continuation of high growth in our business in the domestic Greek market. We are currently evaluating potential acquisitions in SEE,
Eastern Europe and the Southeastern Mediterranean region.

Enhanced operational efficiency

In 2006, the first phase of internal reorganization at the Group was completed, through a range of actions that aimed at actively monitoring and containing
operating expenses. These actions have led to more efficient management of general expenses and staff costs at the Bank, resulting in below-inflation increases. In SEE, operating expenses grew at a
faster pace than in Greece due to the vigorous organic expansion of the Group in the region.

As
a result of our endeavors to control costs while simultaneously growing our revenues, our efficiencyas expressed by the cost/income ratiostood at 49% in 2007
compared with 50% in 2006, fulfilling the 2007 target of 50% set by the Business Plan 2005-2007.

In
the three-year period 2007-2009, we will step up our efforts to contain administrative expenses by initiating the second round of internal reorganization. The
key actions will focus on centralization of commissions at the Group level, and on further rationalization of general expenses by consolidating procurement and rationalizing and centralizing
processes. As a result, domestic general and administrative expenses are expected to increase at roughly the same pace as inflation, on average, each year, while in the wider SEE region, growth in
these expenses will be outstripped by the increase in revenues, thereby improving significantly the ratio of general expenses to income.

As
regards staff productivity increases, the main actions planned for the three-year period 2007-2009 will aim at reducing those tasks carried out in the branches
that are not associated with sales, and the improved management of human resources. Special emphasis will be placed on training and professional development of staff, while the application of
productivity bonuses
and performance-related pay will be strengthened, thereby enhancing incentives and rewarding performance.

As
part of our Business Plan 2007-2009 we announced the implementation of a new Group operating model. All key projects included in this plan have been launched, including the
consolidation of SEE data centers and core banking systems, the outsourcing of Group card processing operations and the deployment of an effective Group procurement model. During 2007, savings of
€10 million were achieved in new global and local procurement negotiations for categories such as ATMs and POS terminals.

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The
Group's operational efficiency is expected to improve significantly to levels below 44% in 2009, compared with 50.7%, in 2006, boosted mainly by improvements in the cost/income ratio
of Finansbank, which is forecasted to fall to below 41% in 2009, from its level of 45% in 2006.

Effective integration of new acquisitions and the leverage of synergies

The recent acquisitions, particularly Finansbank, have created a new structure for the Group, with a wide diversity of revenue and profitability sources that
derive in large part from operations outside Greece. In 2007, more than 60% of the Group's branches were located in SEE and Turkey, while approximately 39.4% of net income and 37.2% of income before
tax derived from the wider SEE region. According to the targets set out in the Business Plan 2007-2009, about 45% of our profitability in 2009 will be generated outside Greece. The
leverage of significant synergies arising from the new Group structure will contribute to growth in this direction, as effective integration into the Group of the recently acquired banks is expected
to generate substantial benefits, with the total impact of these synergies on income before tax anticipated to be in the region of €150 million at the end of 2009. The
integration of Finansbank was completed ahead of schedule within 2007, achieving organizational and policy alignment in all core functions: Treasury, Finance, Risk, Audit and Compliance. Also, all
planned joint business initiatives in Corporate, Investment and Retail Banking were launched and are delivering revenue synergies for the Group, including synergies in 2007 from cross-border lending
provided to Turkish clients, while a new life insurance business was launched in Turkey leveraging Finansbank's network and NBG's expertise. The effective integration was confirmed with the
appointment in early 2008 of Finansbank Group's CEO both to the NBG Group Executive Board and to oversee international activities. To achieve effective integration of the new members into the Group,
it is imperative that a single control and management system is effectively implemented. To this end, substantial work has already been done by means of special projects for the integration of
financial reporting, performance management, risk management, corporate governance and regulatory compliance.

Effective management of regulatory capital

Active management of our regulatory capital is being strengthened alongside the changes in strategy and orientation, and the rapid growth in lending, particularly
in SEE and Turkey. Accordingly, we divested a number of our shareholdings in sectors and activities that either did not yield satisfactory returns or were not compatible with our strategy.

Following
the disposal of our subsidiary Atlantic Bank of New York to New York Community Bank at the end of 2005, we disposed of our Canadian subsidiary NBG Canada. The disposal of these
two banks is in line with our strategy to discontinue operations in mature markets where the prospects of further growth are limited and where, in any case, we have only a very small presence. In
2007, the Bank disposed of its minority stakes in AGET Heracles (26%) and Hellenic Exchanges SA. We will continue to withdraw from non-strategic sectors and divest our portfolio of
low-yielding assets so as to better utilize the funds we invest, thereby continuing to generate benefits for our shareholders.

The
creation and maintenance of an environment of international best practice management is essential in order to ensure our compliance with the requirements of the Basel II framework of
rules regarding the capital adequacy of banks. In the first stage of implementation of Basel II, we saw our regulatory capital affected to only a very small degree. Following the increase in share
capital and the acquisitions discussed above, the Group's Tier I capital adequacy ratio, calculated in accordance with Basel I, stood at 9.2% and the total capital adequacy ratio stood
at 10.2%. Strict and efficient management of the Group's regulatory capital throughout the two years ahead will support growth in operations. Further expansion of the Group through acquisitions will
continue to be selective; ensuring desired returns on the capital invested, but will be relatively small-scale in the coming two years. The transformation of the Group into a modern international
organization requires further changes at a

68

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multitude
of levels. The progress already made is particularly important and has laid the foundations for a successful outcome to the Business Plan 2007-2009.

C.    Organizational Structure

Set forth below is a chart indicating the individual companies within the Group and the participation (direct and indirect) in each company at December 31,
2007.

|Primary Operating Area |                                        | Country of incorporation |              | Direct |        | Indirect |        | Total |       
|---------------------- | -------------------------------------- | ------------------------ | ------------ | ------ | ------ | -------- | ------ | ----- | ------
|Greek banking          |                                        |                          |              |        |        |          |        |       |       
|                       | NBG Asset Management Mutual Funds S.A. |                          | Greece       |        | 81.00  | %        | 19.00  | %     | 100.00
|                       | Ethniki Leasing S.A.                   |                          | Greece       |        | 93.33  | %        | 6.67   | %     | 100.00
|                       | National Mutual Fund Management S.A.   |                          | Greece       |        | 100.00 | %        |       |       | 100.00
|International banking  |                                        |                          |              |        |        |          |        |       |       
|                       | The South African Bank of Athens Ltd   |                          | South Africa |        | 91.44  | %        | 8.06   | %     | 99.50 
|                       | NBG Cyprus Ltd.                        |                          | Cyprus       |        | 100.00 | %        |       |       | 100.00
|                       | Stopanska Banka A.D. (Skopje)          |                          | FYROM        |        | 73.04  | %        |       |       | 73.04 
|                       | United Bulgarian Bank ADSofia (UBB)   |                          | Bulgaria     |        | 99.91  | %        |       |       | 99.91 
|                       | UBB Asset Management                   |                          | Bulgaria     |        |       |          | 99.92  | %     | 99.92 
|                       | UBB Insurance Broker                   |                          | Bulgaria     |        |       |          | 99.93  | %     | 99.93 
|                       | Banca Romaneasca SA                    |                          | Romania      |        | 88.71  | %        |       |       | 88.71 
|                       | NBG A.D. Beograd                       |                          | Serbia       |        | 100.00 | %        |       |       | 100.00
|                       | Vojvodjanska Banka a.d. Novi Sad       |                          | Serbia       |        | 100.00 | %        |       |       | 100.00
|                       | NBG Leasing d.o.o. Belgrade            |                          | Serbia       |        | 100.00 | %        |       |       | 100.00
|                       | NBG Services d.o.o. Belgrade           |                          | Serbia       |        |       |          | 100.00 | %     | 100.00
|                       | Interlease E.A.D.                      |                          | Bulgaria     |        | 100.00 | %        |       |       | 100.00
|                       | Interlease Auto E.A.D.                 |                          | Bulgaria     |        |       |          | 100.00 | %     | 100.00
|                       | EURIAL Leasing SA                      |                          | Romania      |        | 70.00  | %        |       |       | 70.00 
|                       | NBG Luxembourg Holding SA              |                          | Luxembourg   |        | 94.67  | %        | 5.33   | %     | 100.00
|                       | NBG Luxfinance Holding SA              |                          | Luxembourg   |        | 94.67  | %        | 5.33   | %     | 100.00
|                       | NBG International Holding BV           |                          | Holland      |        | 100.00 | %        |       |       | 100.00
|                       | NBG Management Services Ltd            |                          | Cyprus       |        | 100.00 | %        |       |       | 100.00
|Turkish banking        |                                        |                          |              |        |        |          |        |       |       
|                       | Finansbank AS                          |                          | Turkey       |        | 76.99  | %        | 7.90   | %     | 84.89 
|                       | Finans Leasing                         |                          | Turkey       |        | 2.55   | %        | 50.30  | %     | 52.85 
|                       | Finans Invest                          |                          | Turkey       |        | 0.20   | %        | 84.64  | %     | 84.84 
|                       | Finans Portfolio Management            |                          | Turkey       |        | 0.01   | %        | 84.83  | %     | 84.84 
|                       | Finans Investment Trust                |                          | Turkey       |        | 5.30   | %        | 64.51  | %     | 69.81 
|                       | Finans (Malta) Holdings Ltd            |                          | Malta        |        |       |          | 84.89  | %     | 84.89 
|                       | Finansbank (Malta) Ltd                 |                          | Malta        |        |       |          | 84.89  | %     | 84.89 
|                       | IB Tech                                |                          | Turkey       |        |       |          | 84.04  | %     | 84.04 

69

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|Investment and private banking |                                                                                |  |                |  |        |   |        |   |       
|------------------------------ | ------------------------------------------------------------------------------ |  | -------------- |  | ------ | - | ------ | - | ------
|                               | P&K Investment Services SA                                                     |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | NBG International Ltd                                                          |  | UK             |  | 100.00 | % |       |   | 100.00
|                               | CPT Investments Ltd                                                            |  | Cayman Islands |  | 50.10  | % |       |   | 50.10 
|                               | National P&K Securities S.A                                                    |  | Greece         |  | 59.32  | % | 40.68  | % | 100.00
|                               | National Securities Co (Cyprus) Ltd                                            |  | Cyprus         |  |       |   | 100.00 | % | 100.00
|                               | NBG Greek Fund Ltd.                                                            |  | Cyprus         |  | 100.00 | % |       |   | 100.00
|                               | ETEBA Emerging Markets Fund Ltd.                                               |  | Cyprus         |  | 100.00 | % |       |   | 100.00
|                               | ETEBA Estate Fund Ltd.                                                         |  | Cyprus         |  | 100.00 | % |       |   | 100.00
|                               | ETEBA Venture Capital Management Co S.A.                                       |  | Cyprus         |  | 100.00 | % |       |   | 100.00
|                               | ETEBA Bulgaria A.D.                                                            |  | Bulgaria       |  | 92.00  | % | 8.00   | % | 100.00
|                               | ETEBA Romania S.A.                                                             |  | Romania        |  | 100.00 | % |       |   | 100.00
|                               | Innovative Ventures S.A. (I-Ven)                                               |  | Greece         |  |       |   | 100.00 | % | 100.00
|                               | Ethniki Kefalaiou S.A.                                                         |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | NBG International Inc. (NY)                                                    |  | USA            |  |       |   | 100.00 | % | 100.00
|                               | NBGI Private Equity                                                            |  | UK             |  |       |   | 100.00 | % | 100.00
|                               | NBGI Private Equity Funds                                                      |  | UK             |  |       |   | 100.00 | % | 100.00
|Insurance                      |                                                                                |  |                |  |        |   |        |   |       
|                               | NBG Bancassurance S.A.                                                         |  | Greece         |  | 99.70  | % | 0.30   | % | 100.00
|                               | Ethniki Hellenic General Insurance S.A.                                        |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | National Insurance Brokerage S.A.                                              |  | Greece         |  |       |   | 95.00  | % | 95.00 
|                               | Ethniki Insurance (Cyprus) Ltd                                                 |  | Cyprus         |  |       |   | 100.00 | % | 100.00
|                               | Ethniki General Insurance (Cyprus) Ltd                                         |  | Cyprus         |  |       |   | 100.00 | % | 100.00
|                               | S.C. Garanta Asigurari SA                                                      |  | Romania        |  |       |   | 94.96  | % | 94.96 
|                               | Finans Pension AS                                                              |  | Turkey         |  |       |   | 84.89  | % | 84.89 
|                               | Audatex Hellas S.A.                                                            |  | Greece         |  |       |   | 70.00  | % | 70.00 
|Other                          |                                                                                |  |                |  |        |   |        |   |       
|                               | Ethnodata S.A.                                                                 |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | NBG Training Center S.A.                                                       |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | Ethnoplan S.A.                                                                 |  | Greece         |  |       |   | 100.00 | % | 100.00
|                               | Pronomiouhos S.A. Genikon Apothikon Hellados (former NBG Venture Capital S.A.) |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | DIONISOS SA                                                                    |  | Greece         |  | 99.91  | % |       |   | 99.91 
|                               | KADMOS S.A.                                                                    |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | EKTENEPOL Construction Company SA                                              |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | Mortgage, Tourist PROTYPOS S.A.                                                |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | GRAND HOTEL SUMMER PALACE S.A.                                                 |  | Greece         |  | 100.00 | % |       |   | 100.00
|                               | Hellenic Tourist Constructions S.A.                                            |  | Greece         |  | 77.76  | % |       |   | 77.76 
|                               | ASTIR PALACE VOULIAGMENIS S.A.                                                 |  | Greece         |  | 78.06  | % |       |   | 78.06 
|                               | Ethniki Ktimatikis Ekmetalefsis SA                                             |  | Greece         |  | 100.00 | % |       |   | 100.00

D.    Property, Plants and Equipment

As at December 31, 2007, we owned approximately 2,340 properties, approximately 1,800 of which are buildings. These properties are, for the most part, held
free of encumbrances. Most of our properties are attributable to our branches and offices through which we maintain our customer relationships and administer our operations. Most of our other
properties have been acquired as a result of foreclosure on the collateral of defaulted loans. There are no environmental issues of which we are aware of that may affect the Bank's utilization of our
real estate assets.

The
Group's real estate portfolio was recorded at a net book value of €1,069.8 million as at December 31, 2007, which is included in the U.S. GAAP
financial statements under "premises and equipment". Those of our properties that have been acquired as a result of foreclosure on the

70

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collateral
of defaulted loans had a book value of €104.3 million as at December 31, 2007, and are included under "other assets" in the Group's U.S. GAAP financial
statements. Management believes that the current market value of real estate assets exceeds their book value. We are not always able to realize the full market value of real estate which we are
required to or wish to sell because of variations in the property market and legal impediments to the open market sale of such property. However, in order to expedite the process of divesting these
non-core assets, we have simplified the auction process and have established a subsidiary, Ethniki Kefalaiou S.A., which acquires from the Bank and our subsidiaries certain real
estate assets with the sole purpose of realizing for the Group the value of such assets more efficiently. For more information on the Group's management of its properties see Item 4.B,
"Business OverviewOther Financial and Related ServicesReal Estate Management".

E.    Selected Statistical Data

Information included in this section, except where otherwise stated, relates to the Bank and its subsidiaries. The statistical data presented below may differ
from data included in the consolidated financial statements of the Group included elsewhere in this Annual Report. In certain cases, the statistical data is derived from statutory reports and from
statistical data reported in the forms
prescribed by the central bank for regulatory purposes. Such data are compiled as a normal part of our financial reporting and management information systems. Unless otherwise noted, amounts presented
below are based on U.S. GAAP financial information.

71

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Average Balances and Interest Rates

The following tables set forth the average balances of our assets and liabilities for the years ended December 31, 2005, 2006 and 2007, from our domestic
and foreign continuing operations and, for interest-earning assets and interest-bearing liabilities, provide the amount of interest earned or paid and the average rate of such interest for such asset
or liability, as applicable. The tables below have been calculated on the basis of average monthly balances.

|                  |                                                                                      | Year ended December 31,
|----------------- | ------------------------------------------------------------------------------------ | -----------------------
|
|
|
|Domestic:         |                                                                                      |                        
|Assets:           |                                                                                      |                        
|                  | Cash and due from banks                                                              |                        
|                  | Deposits with central bank                                                           |                        
|                  | Securities purchased under agreements to resell                                      |                        
|                  | Interest bearing deposits with banks                                                 |                        
|                  | Money market investments                                                             |                        
|                  | Trading and derivative assets and financial instruments marked to market through P&L |                        
|                  | Available for sale securities, at fair value                                         |                        
|                  | Held to maturity securities                                                          |                        
|                  | Loans                                                                                |                        
|                  | Less: Allowance for loan losses                                                      |                        
|                  |                                                                                      |                        
|                  | Net loans                                                                            |                        
|                  | Goodwill, software and other intangible assets                                       |                        
|                  | Premises and equipments, net                                                         |                        
|                  | Accrued interest receivable                                                          |                        
|                  | Other assets                                                                         |                        
|                  |                                                                                      |                        
|Total Assets      |                                                                                      | 42,348,573             
|                  |                                                                                      |                        
|Liabilities:      |                                                                                      |                        
|                  | Deposits                                                                             |                        
|                  | Securities sold under agreements to repurchase                                       |                        
|                  | Other borrowed funds and derivative liabilities                                      |                        
|                  | Accounts payable, accrued expenses, insurance reserves and other liabilities         |                        
|                  | Long-term debt                                                                       |                        
|                  |                                                                                      |                        
|Total Liabilities |                                                                                      | 44,691,380             
|                  |                                                                                      |                        

72

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|                  |                                                                                      | Year ended December 31,
|----------------- | ------------------------------------------------------------------------------------ | -----------------------
|
|
|
|Foreign:          |                                                                                      |                        
|Assets:           |                                                                                      |                        
|                  | Cash and due from banks                                                              |                        
|                  | Deposits with central bank                                                           |                        
|                  | Securities purchased under agreements to resell                                      |                        
|                  | Interest bearing deposits with banks                                                 |                        
|                  | Money market investments                                                             |                        
|                  | Trading and derivative assets and financial instruments marked to market through P&L |                        
|                  | Available for sale securities, at fair value                                         |                        
|                  | Held to maturity securities                                                          |                        
|                  | Loans                                                                                |                        
|                  | Less: Allowance for loan losses                                                      |                        
|                  |                                                                                      |                        
|                  | Net loans                                                                            |                        
|                  | Goodwill, software and other intangible assets                                       |                        
|                  | Premises and equipments, net                                                         |                        
|                  | Accrued interest receivable                                                          |                        
|                  | Other assets                                                                         |                        
|                  |                                                                                      |                        
|Total Assets      |                                                                                      | 16,966,841             
|                  |                                                                                      |                        
|Liabilities:      |                                                                                      |                        
|                  | Deposits                                                                             |                        
|                  | Securities sold under agreements to repurchase                                       |                        
|                  | Other borrowed funds and derivative liabilities                                      |                        
|                  | Accounts payable, accrued expenses, insurance reserves and other liabilities         |                        
|                  | Long-term debt                                                                       |                        
|                  |                                                                                      |                        
|Total Liabilities |                                                                                      | 13,384,726             
|                  |                                                                                      |                        

---

73

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Analysis of Changes in Net Interest Income and Interest ExpenseVolume and Rate Analysis

The following tables analyze the change in our net interest income attributable to changes in the average volume of interest-earning assets and interest-bearing
liabilities and changes in their respective interest rates for the periods presented from our continuing operations. Amounts due to changes in volume have been calculated by multiplying the change in
volume during the year times the average rate for the preceding year. Amounts due to changes in rates have been calculated by multiplying the change in the current year average rate times the volume
of the current year. The net change attributable to changes in both volume and rate has been allocated proportionately to the change due to average volume and the change due to average rate. The
changes are calculated on the basis of the monthly average balance sheets set forth in the preceding table.

|                  |                                                                                      | 2006 vs 2005 |        
|----------------- | ------------------------------------------------------------------------------------ | ------------ | -------
|
|
|
|ASSETS            |                                                                                      |              |        
|                  | Deposits with central bank                                                           |              | 8,836  
|                  | Securities purchased under agreements to resell                                      |              | (169   
|                  | Interest bearing deposits with banks                                                 |              | 61,460 
|                  | Money market investments                                                             |              | 3,350  
|                  | Trading and derivative assets and financial instruments marked to market through P&L |              | 136,563
|                  | Available-for-sale securities, at fair value                                         |              | 9,276  
|                  | Held to maturity                                                                     |              |       
|                  | Loans                                                                                |              | 300,264
|                  | Other assets                                                                         |              | 2,748  
|                  |                                                                                      |              |        
|Total Assets      |                                                                                      | 522,328      |        
|                  |                                                                                      |              |        
|LIABILITIES       |                                                                                      |              |        
|                  | Deposits                                                                             |              | 307,029
|                  | Securities sold under agreements to repurchase                                       |              | (23,072
|                  | Other borrowed funds                                                                 |              |       
|                  | Accounts payable, accrued expenses and other liabilities                             |              | (3,234 
|                  | Long-term debt                                                                       |              | (84,405
|                  |                                                                                      |              |        
|Total Liabilities |                                                                                      | 196,318      |        
|                  |                                                                                      |              |        

74

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|
|

|                  |                                                                                      | 2007 vs 2006 |        
|----------------- | ------------------------------------------------------------------------------------ | ------------ | -------
|
|
|
|ASSETS            |                                                                                      |              |        
|                  | Deposits with central bank                                                           |              | 11,879 
|                  | Securities purchased under agreements to resell                                      |              | 143    
|                  | Interest bearing deposits with banks                                                 |              | 1,617  
|                  | Money market investments                                                             |              | (1,764 
|                  | Trading and derivative assets and financial instruments marked to market through P&L |              | 22,489 
|                  | Available-for-sale securities, at fair value                                         |              | 41,297 
|                  | Loans                                                                                |              | 586,263
|                  | Other assets                                                                         |              | 4,013  
|                  |                                                                                      |              |        
|Total Assets      |                                                                                      | 665,937      |        
|                  |                                                                                      |              |        
|LIABILITIES       |                                                                                      |              |        
|                  | Deposits                                                                             |              | 224,540
|                  | Securities sold under agreements to repurchase                                       |              | 2,835  
|                  | Other borrowed funds                                                                 |              | 840    
|                  | Accounts payable, accrued expenses and other liabilities                             |              | 473    
|                  | Long-term debt                                                                       |              | (306   
|                  |                                                                                      |              |        
|Total Liabilities |                                                                                      | 228,382      |        
|                  |                                                                                      |              |        

Interest Earning AssetsNet Interest Margin

The following table shows the levels of average interest earning assets and interest income and net interest income of the Group and the net interest margin for
each of the periods indicated from domestic and foreign continuing operations. These data are derived from the table of average balance and interest rates above and are based upon information in the
Group's U.S. GAAP Financial Statements.

|                                               |  | Year ended December 31,
|---------------------------------------------- |  | -----------------------
|
|
|Domestic:                                      |  |                        
|Average interest earning assets                |  | 40,274,484             
|Interest income from continuing operations     |  | 1,762,881              
|Average interest bearing liabilities           |  | 40,572,969             
|Interest expense from continuing operations    |  | 528,465                
|Net interest income from continuing operations |  | 1,234,416              
|Net interest margin(1)                         |  | 3.07%                  
|Foreign:                                       |  |                        
|Average interest earning assets                |  | 16,383,962             
|Interest income from continuing operations     |  | 627,507                
|Average interest bearing liabilities           |  | 13,350,661             
|Interest expense from continuing operations    |  | 308,656                
|Net interest income from continuing operations |  | 318,851                
|Net interest margin(1)                         |  | 1.95%                  

---

75

---



Return on Equity and Assets

The following table presents certain selected financial information and ratios for the Group for the periods indicated from continuing operations.

|                                                                                 |                                 | Year ended December 31,
|-------------------------------------------------------------------------------- | ------------------------------- | -----------------------
|
|
|Net interest income from continuing operations before provisions for loan losses |                                 | 1,553,267              
|Net income                                                                       |                                 | 526,911                
|Average total assets                                                             |                                 | 59,315,414             
|Average shareholders' equity(1)                                                  |                                 | 1,975,003              
|Net interest income from continuing operations as a percent of:                  |                                 |                        
|                                                                                 | Average total assets            |                        
|                                                                                 | Average shareholders' equity(1) |                        
|Net income as a percent of:                                                      |                                 |                        
|                                                                                 | Average total assets            |                        
|                                                                                 | Average shareholders' equity(1) |                        
|Average shareholders' equity to average total assets                             |                                 | 3.33%                  
|Dividend payout ratio(2)                                                         |                                 | 61.10%                 

---

Assets

Investment Portfolio

At December 31, 2007, the Group's investment securities had a carrying value of €16,921.6 million, representing 18.6% of the Group's
total assets. Greek Treasury bonds and other Greek Government or Government-guaranteed securities accounted for €6,800.0 million, or 40.2% of the Group's investment securities.
In preparing its U.S. GAAP Financial Statements, the Group classified its securities as required by U.S. GAAP according to the following categories: trading securities, securities
available-for-sale and securities held to maturity.

The
Bank has the largest portfolio of Greek Government bonds among Greek banks, which is attributable to the Bank's position as the leading primary dealer (in terms of volume and
liquidity) of Greek risk, according to statistics published by the Bank of Greece.

The
Group's equity portfolio stems largely from investment activities on the ATHEX as well as equities taken in loan foreclosure and workout situations from the past. As part of our aim
to restructure and reorganize our operations, the Group has been strategically divesting our holdings in non-core businesses. In 2005, we had revenues of
€31.6 million from Elliniki Technodomiki S.A., Hellascom S.A., Lykos Paperless Solutions SA and Eviop Tempo SA. In 2006 we had revenues of
€369.8 million, of which US$388.4 million represented the disposal of our investment in Atlantic Bank of New York, CAD 71.3 million was derived from the disposal
of our investment in NBG Canada, €6.5 million from the disposal of our equity investment in ASTIR Alexandroupolis AXE, €2.5 million from the disposal of
AGRIS and €0.8 million from other disposals. In 2007 we had revenues of €

76

---



405.3 million,
of which €320.7 million represented the disposal of our investment in AGET Heracles, €80.1 million from the disposal of our
investment in Hellenic Exchanges S.A., €2.6 million from the disposal of our investment in Elsa S.A., €1.7 million from the disposal of our
investment in P&K Mutual Fund Management and €0.2 million from the disposal of our investment in Karriera and Zymi. The above disposals resulted in gains of approximately
€165 thousand. For more information on the Group's divestitures see Item 4.A, "History and Development of the Company".

The
following table sets forth the cost and fair value of each type of the Group's debt and equity assets held for trading at December 31, 2005, 2006 and 2007:

|                           |                                                                               | Year ended December 31,
|-------------------------- | ----------------------------------------------------------------------------- | -----------------------
|
|
|
|Trading Account Securities |                                                                               |                        
|                           | Greek government bonds                                                        |                        
|                           | Certificates of deposit, banker's acceptances and commercial paper            |                        
|                           | Debt securities issued by other governments and public entities               |                        
|                           | Debt securities issued by foreign financial institutions                      |                        
|                           | Debt securities issued by Greek financial institutions incorporated in Greece |                        
|                           | Equity securities issued by companies incorporated in Greece                  |                        
|                           | Equity securities issued by foreign companies                                 |                        
|                           | Other                                                                         |                        
|                           |                                                                               |                        
|                           | Total                                                                         |                        
|                           |                                                                               |                        
|                           | Financial instruments marked to market through the profit and loss(1)         |                        
|                           |                                                                               |                        

---

77

---



The following table sets forth the amortized cost and fair value as well as gross unrealized gains and losses of each type of the Group's
available-for-sale and held-to-maturity securities at December 31, 2005, 2006 and 2007:

|                              |                                                                           | Year ended December 31,
|----------------------------- | ------------------------------------------------------------------------- | -----------------------
|
|
|
|Available-for-sale securities |                                                                           |                        
|                              | Greek government bonds                                                    |                        
|                              | Debt securities issued by other governments and public entities           |                        
|                              | Corporate debt securities issued by companies incorporated in Greece      |                        
|                              | Corporate debt securities issued by companies incorporated outside Greece |                        
|                              | Equity securities issued by companies incorporated in Greece              |                        
|                              | Equity securities issued by companies incorporated outside Greece         |                        
|                              | Mutual fund units                                                         |                        
|                              |                                                                           |                        
|                              | Total available-for-sale securities                                       |                        
|                              |                                                                           |                        
|                              | Held to maturity securities                                               |                        
|                              |                                                                           |                        

As of December 31, 2006 and 2007, the Group did not hold any US Federal debt securities.

78

---



The
following table sets forth the book value of the Group's securities by maturity at December 31, 2007:

|                               |                                                                           | Year ended December 31, 2007
|------------------------------ | ------------------------------------------------------------------------- | ----------------------------
|
|
|
|Trading account securities:    |                                                                           |                             
|                               | Greek government and agencies                                             |                             
|                               | Debt securities issued by other governments and public entities           |                             
|                               | Debt securities issued by Greek financial institutions                    |                             
|                               | Debt securities issued by foreign financial institutions                  |                             
|                               | Corporate debt securities issued by Greek companies                       |                             
|                               | Corporate debt securities issued by foreign companies                     |                             
|                               | Financial instruments marked to market through the Profit and Loss        |                             
|                               |                                                                           |                             
|                               | Total trading account securities                                          |                             
|                               |                                                                           |                             
|Available-for-sale securities: |                                                                           |                             
|                               | Greek government and agencies                                             |                             
|                               | Debt securities issued by other governments and public entities           |                             
|                               | Corporate debt securities issued by companies incorporated in Greece      |                             
|                               | Corporate debt securities issued by companies incorporated outside Greece |                             
|                               |                                                                           |                             
|                               | Total available-for-sale securities                                       |                             
|                               |                                                                           |                             

The Group holds a significant amount of financial instruments issued by the Greek Government. The market (and book) value of these financial
instruments held by the Group (which includes securities held in our trading, financial instruments marked to market through the Profit and Loss and available-for-sale
portfolios) at December 31, 2007 was €12.5 billion.



The Group's loan portfolio has grown steadily in recent years in line with increased demand for credit generally in Greece and the other markets in which the
Group operates. At December 31, 2007, the amount of the Group's total outstanding loans to customers net of allowances for loan losses equaled €54,427.5 million. The
Group's loan portfolio consists of approximately 50% retail and 50% commercial loans. See Note 15 to the U.S. GAAP Financial Statements. Approximately 67% of the Group's loan portfolio
was to Greek residents as at December 31, 2007. Most of the Group's loans are in the form of credit lines with short maturities.

79

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Loans by Type of Customer.The Group offers a wide range of credit instruments to domestic and foreign businesses and
State-related entities and individuals, including letters of credit and long-term and short-term loans.

The
following table provides details of loans to customers made by the Group, classified by type of loan, the borrower's principal economic activity, as well as the breakdown of domestic
and foreign loans at December 31, 2003, 2004, 2005, 2006 and 2007.

|                 |                              | Year ended December 31,
|---------------- | ---------------------------- | -----------------------
|
|
|Greek residents: |                              |                        
|Consumer:        |                              |                        
|                 | Residential mortgages        |                        
|                 | Credit card                  |                        
|                 | Auto financings              |                        
|                 | Other consumers              |                        
|                 |                              |                        
|                 | Total                        |                        
|                 |                              |                        
|Commercial:      |                              |                        
|                 | Industry and mining          |                        
|                 | Small-scale industry         |                        
|                 | Trade                        |                        
|                 | Construction                 |                        
|                 | Tourism                      |                        
|                 | Shipping and transportation  |                        
|                 | Commercial mortgages         |                        
|                 | Public sector                |                        
|                 | Other                        |                        
|                 |                              |                        
|                 | Total                        |                        
|                 |                              |                        
|                 | Total Greek residents loans  |                        
|                 |                              |                        
|                 | Unearned income              |                        
|                 |                              |                        
|                 | Loans net of unearned income |                        
|                 |                              |                        

80

---



|
|

|            |                                            | Year ended December 31, |           
|----------- | ------------------------------------------ | ----------------------- | ----------
|
|
|Foreign:    |                                            |                         |           
|Consumer:   |                                            |                         |           
|            | Residential mortgages                      |                         | 263,964   
|            | Credit card                                |                         | 20,546    
|            | Auto financings                            |                         | 16,735    
|            | Other consumers                            |                         | 267,159   
|            |                                            |                         |           
|            | Total                                      |                         | 568,404   
|            |                                            |                         |           
|Commercial: |                                            |                         |           
|            | Industry and mining                        |                         | 890,675   
|            | Small-scale industry                       |                         | 88,118    
|            | Trade                                      |                         | 618,837   
|            | Construction                               |                         | 267,510   
|            | Tourism                                    |                         | 101,591   
|            | Shipping and transportation                |                         | 226,543   
|            | Commercial mortgages                       |                         | 631,668   
|            | Public sector                              |                         | 45,694    
|            | Other                                      |                         | 452,381   
|            |                                            |                         |           
|            | Total                                      |                         | 3,323,017 
|            |                                            |                         |           
|            | Total foreign loans                        |                         | 3,891,421 
|            |                                            |                         |           
|            | Unearned income                            |                         | (5,589    
|            | Total foreign loans net of unearned income |                         | 3,885,832 
|            |                                            |                         |           
|            | Total loans net of unearned income         |                         | 22,933,040
|            |                                            |                         |           
|            | Less: Allowance for loan losses            |                         | (1,047,493
|            |                                            |                         |           
|            | Total net loans                            |                         | 21,885,547
|            |                                            |                         |           

A brief description of the type of loan classifications included in the above analysis is as follows.

Residential
mortgages consist primarily of fixed and floating rate loans first collateralized by interests in owner-occupied dwellings including houses and condominiums. These loans are
nearly all secured by pre-notation ("prosimiosi") which is less expensive and easier to record than mortgages. See, below in this
Item 4.E, "Selected Statistical DataCredit QualityRisk ManagementLoan Approval Process".

The
Group is also able to offer certain Government-subsidized mortgage loans in Greece to borrowers who meet certain criteria.

Credit
card lendings are unsecured revolving credit lines.

Auto
financing loans are extended for personal vehicles and are mostly secured.

Other
consumer loans are made to individuals on an installment plan to finance the purchase of consumer goods and to pay for services. The Bank extends revolving credit facilities for
retail customers under which approved customers can withdraw funds up to the limit of their individual credit facility as needed for personal purposes. These loans are unsecured.

81

---



The
majority of the Group's commercial loans are in the form of short-term (i.e., less than one year) credit facilities. Generally, if the borrowers meet interest
payments in a timely manner, these facilities are rolled over, subject to the wishes of the borrower and the Bank's credit review policies.

Industry
and mining loans include credit extensions primarily made to corporations involved in the textile, food and beverage, chemical, and metals mining ventures. Such loans are
generally collateralized by interests in the customers' real property and operating assets.

Small
scale industry loans are those made to commercial ventures that generally employ fewer than 50 persons, and such loans are collateralized by assets of the company or assets of the
companies' shareholders.

Trade
loans are those made to ventures which do not manufacture goods but import, export, distribute and sell goods. Such loans are typically collateralized by inventory or assets of the
company's shareholders.

Construction
loans are made for larger scale infrastructure or commercial projects undertaken by private entities on their own behalf or on behalf of government public works offices.

Tourism
loans are made primarily to developers and operators of hotel and resort properties and such loans are secured by interests in those properties.

Shipping
and transportation loans are advanced primarily for shipbuilding, and to a lesser extent, shipyard construction and vessel acquisitions and are collateralized by interests in
the vessels or other property and the future revenues generated by the vessels. Other transportation loans relate to ground and air transport.

Commercial
mortgages are loans for the acquisition of real estate used in business. These loans are nearly all secured by pre-notation which is less costly and easier to
administer than a mortgage.

Public
sector loans are those advanced to the Hellenic Republic, public utilities and entities governed by the public law of Greece, including IKA, the largest social security
institution in Greece, and a shareholder of the Bank.

The
rollover policy of the Group stipulates full repayment of loan obligations upon maturity/expiry of a loan facility before a new loan is extended.

82

---



The
following table provides details of loans to customers made by the Group by maturity, classified by type of loan, the borrower's principal economic activity, as well as the breakdown
of domestic and foreign loans as at December 31, 2007.

|                |                                 | Year ended December 31, 2007 |           
|--------------- | ------------------------------- | ---------------------------- | ----------
|
|
|Greek Residents |                                 |                              |           
|Consumer:       |                                 |                              |           
|                | Residential mortgages           |                              | 1,161,937 
|                | Credit card                     |                              | 1,543,832 
|                | Auto financing                  |                              | 18,793    
|                | Other consumers                 |                              | 1,428,436 
|                |                                 |                              |           
|                | Total                           |                              | 4,152,998 
|                |                                 |                              |           
|Commercial:     |                                 |                              |           
|                | Industry and mining             |                              | 1,802,587 
|                | Small-scale industry            |                              | 816,950   
|                | Trade                           |                              | 2,854,365 
|                | Construction                    |                              | 361,042   
|                | Tourism                         |                              | 86,963    
|                | Shipping and transportation     |                              | 386,553   
|                | Commercial mortgages            |                              | 41,952    
|                | Public sector                   |                              | 717,691   
|                | Other                           |                              | 1,103,483 
|                |                                 |                              |           
|                | Total                           |                              | 8,171,586 
|                |                                 |                              |           
|                | Total Greek residents loans     |                              | 12,324,584
|                |                                 |                              |           
|Foreign:        |                                 |                              |           
|Consumer:       |                                 |                              |           
|                | Residential mortgages           |                              | 54,978    
|                | Credit card                     |                              | 1,640,101 
|                | Auto financing                  |                              | 65,653    
|                | Other consumers                 |                              | 435,586   
|                |                                 |                              |           
|                | Total                           |                              | 2,196,318 
|                |                                 |                              |           
|Commercial:     |                                 |                              |           
|                | Industry and mining             |                              | 583,607   
|                | Small-scale industry            |                              | 999,764   
|                | Trade                           |                              | 715,692   
|                | Construction                    |                              | 454,817   
|                | Tourism                         |                              | 73,235    
|                | Shipping and transportation     |                              | 150,161   
|                | Commercial mortgages            |                              | 29,419    
|                | Public sector                   |                              | 608       
|                | Other                           |                              | 2,338,317 
|                |                                 |                              |           
|                | Total                           |                              | 5,345,620 
|                |                                 |                              |           
|                | Total foreign loans             |                              | 7,541,938 
|                | Unearned income                 |                              | (89,817   
|                |                                 |                              |           
|                | Loans, net of unearned income   |                              | 19,776,705
|                | Less: Allowance for loan losses |                              | (1,132,952
|                |                                 |                              |           
|                | Total net loans                 |                              | 18,643,753
|                |                                 |                              |           

83

---



Of the Group's loans outstanding at December 31, 2007 that are due after one year, €14,134 million had fixed
interest rates while €21,649 million had floating interest rates.

Foreign Country Outstanding Loans

The Group's foreign country outstanding loans, representing specific country risk, are extended primarily by the Group's foreign branches and banking
subsidiaries. The Bank's Greek and London operations also provide loans customarily made in U.S. dollars to the shipping industry, as well as loans denominated in other currencies as requested
by customers. The Group's most significant exposure to foreign countries for the year ended December 31, 2005 was to the United States, Cyprus, Bulgaria and Romania; for the years ended
December 31, 2006 and 2007 to United Kingdom, Serbia, Turkey, Bulgaria, Romania and Cyprus. These foreign country outstanding loans represent additional economic and political risks. For
additional information on the macroeconomic and political risks from operating in Turkey, as well as for the risks of conducting significant international activities and expanding in emerging markets,
see Item 3.D, "Risk Factors".

The
tables below show the amount of foreign country outstandings at December 31, 2005, 2006 and 2007 in each foreign country where such outstandings exceed 1% of the Group's total
assets.

|                                     |  | Year ended December 31, 2005
|------------------------------------ |  | ----------------------------
|
|
|
|Loans                                |  | 1,078,911                   
|Interest bearing deposits with banks |  | 19,625                      
|Other interest bearing investments   |  | 1,069,147                   
|Other monetary assets                |  | 107,633                     
|                                     |  |                             
|Total                                |  | 2,275,316                   
|                                     |  |                             

|
|

|                                     |  | Year ended December 31, 2006
|------------------------------------ |  | ----------------------------
|
|
|
|Loans                                |  | 207,409                     
|Interest bearing deposits with banks |  | 343,145                     
|Other interest bearing investments   |  | 300,399                     
|Other monetary assets                |  | 23,446                      
|                                     |  |                             
|Total                                |  | 874,399                     
|                                     |  |                             

84

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|
|

|                                     |  | Year ended December 31, 2007
|------------------------------------ |  | ----------------------------
|
|
|
|Loans                                |  | 505,347                     
|Interest bearing deposits with banks |  | 54,131                      
|Other interest bearing investments   |  | 420,565                     
|Other monetary assets                |  | 317,463                     
|                                     |  |                             
|Total                                |  | 1,297,506                   
|                                     |  |                             

The table below shows the amount of foreign country loans by type of borrower for countries where the Group's exposure exceeded 1% of total assets
at December 31, 2005, 2006 and 2007.

|            |                             | Year ended December 31, 2005
|----------- | --------------------------- | ----------------------------
|
|
|
|Consumer:   |                             |                             
|            | Residential mortgages       |                             
|            | Credit card                 |                             
|            | Auto financing              |                             
|            | Other consumers             |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|Commercial: |                             |                             
|            | Industry and mining         |                             
|            | Small-scale industry        |                             
|            | Trade                       |                             
|            | Construction                |                             
|            | Tourism                     |                             
|            | Shipping and transportation |                             
|            | Mortgages                   |                             
|            | Public sector               |                             
|            | Other                       |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|            | Total loans                 |                             
|            |                             |                             

85

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|
|

|            |                             | Year ended December 31, 2006
|----------- | --------------------------- | ----------------------------
|
|
|
|Consumer:   |                             |                             
|            | Residential mortgages       |                             
|            | Credit card                 |                             
|            | Auto financing              |                             
|            | Other consumers             |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|Commercial: |                             |                             
|            | Industry and mining         |                             
|            | Small-scale industry        |                             
|            | Trade                       |                             
|            | Construction                |                             
|            | Tourism                     |                             
|            | Shipping and transportation |                             
|            | Mortgages                   |                             
|            | Public sector               |                             
|            | Other                       |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|            | Total loans                 |                             
|            |                             |                             

|
|

|            |                             | Year ended December 31, 2007
|----------- | --------------------------- | ----------------------------
|
|
|
|Consumer:   |                             |                             
|            | Residential mortgages       |                             
|            | Credit card                 |                             
|            | Auto financing              |                             
|            | Other consumers             |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|Commercial: |                             |                             
|            | Industry and mining         |                             
|            | Small-scale industry        |                             
|            | Trade                       |                             
|            | Construction                |                             
|            | Tourism                     |                             
|            | Shipping and transportation |                             
|            | Mortgages                   |                             
|            | Public sector               |                             
|            | Other                       |                             
|            |                             |                             
|            | Total                       |                             
|            |                             |                             
|            | Total loans                 |                             
|            |                             |                             

86

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Credit Quality

Risk ManagementLoan Approval Process

The discussion below relates to the Bank and our banking subsidiaries, Finansbank, Vojvodjanska, SABA, UBB, Stopanska Banka, NBG Cyprus and Banca Romaneasca.



The Bank has established a centralized credit approval process, which is governed by the Credit Policy for the Corporate Banking Portfolio (the "Credit Policy").
The Corporate Banking Portfolio includes all corporate customers with an annual turnover exceeding €2.5 million. The Credit Policy addresses core credit policies and procedures
for identifying, measuring, approving and reporting credit risk. To this end, it includes a set of rules related to the extensions of credit and the granting of approval authority.

Credit
extensions are based on Credit Proposals, which are prepared by the Corporate Banking Business Divisions and submitted for approval as appropriate. The approval level primarily
depends on the total amount of proposed facilities, tenor, the classification of the obligor and the sector. All credit extensions are subject to the approval of authorized Credit Division members or
the Group Chief Risk Officer.

There
are 11 levels of credit approval authority as follows:



The
underwriting process is centralized under the Mortgage Credit Division. All mortgage applications are rated using a bespoke application scorecard. Centralized underwriting ensures
segregation of duties and uniform enforcement of underwriting standards. Loan security is typically in the form of a Mortgage Pre-notation on a property for 120% of the loan amount.
Pre-notation is easily converted into a full mortgage following a non-appealable court order or decision, which may be obtained at the request of the Bank in the event of
default.

Maximum
loan amount usually does not exceed 75% of the asset's market value, but this may infrequently evolve up to 100% according to various factors and specific circumstances, which
deal with,

87

---



among
other variables, the applicant's credit profile, type of ownership, location of the asset and type of the financed property.

The
Bank may, at its discretion, permit the transfer of a mortgage on condition that the transferee agrees to assume all obligations arising from the original mortgage contract, and
provided that the transferee's income and credit profile have been screened and approved by the Mortgage Credit Division.

Loan
approval criteria include the applicants' income, the sources of such income, employment history, credit history, and the applicant's payment-to-income
ratio. Moreover,
loan approval takes into account the applicant's former relation with the Bank (e.g. deposits, private banking), as well as the value of collateral. Further, a large proportion of our mortgage
portfolio, approximately 38% (in accounts) and 29% (in balances), is either guaranteed or subsidized by the Hellenic Republic, further improving the overall risk profile of the Bank.

Qualified
appraisers, both in-house and outsourced, are completely independent from the underwriting process and carry out collateral valuation. In doing so, they have to
take into account the market value of the property. In addition, they perform an estimation of liquidation possibilities, taking into account the levels of commercial activity with respect to
properties with similar characteristics. Furthermore, the appraisers apply conservative assumptions in estimating market values and formulate a useful benchmark, serving as an indication of the
minimum asking price for the asset.



For
personal loans and credit cards, the credit approval process is centralized and is carried out through the use of bespoke credit scorecards, developed on the basis of historical
data. These are used for the review of applications to ensure effective and accurate decision-making. Sophisticated statistical methods are subsequently implemented to determine pricing and
risk/return ratios.

The
Group Risk Management Division ("GRMD") produces, among other reports, ageing analyses by period of disbursement, issuing channel, and product type for various delinquency
definitions, thus continuously ensuring strict monitoring of the scorecards' efficiency and separation power. Exposures are pooled by application score and delinquency bucket to produce estimates of
default probabilities. Consumer loans are generally not collateralized, with the exception of car loans.



The
SME Division has created small business credit centers in Athens, Thessaloniki and Patras in order to standardize lending criteria. These credit centers handle all of the Bank's
credit applications, whether coming from entrepreneurs or SMEs.

The
above mentioned credit centers are staffed by lending teams under the supervision of a team leader. Credit underwriters use a decision support model to assist in their credit
decisions when reviewing and making credit decisions on applications forwarded by branches. An internal rating model has recently been developed for the credit evaluation of loan requests. This model
is expected to further improve the quality of decisions and reduce the time required for the credit granting process.

There
are four credit approval authority levels within the Business Unit however, SME credit exposures beyond €5.0 million and up to
€7.5 million must also be approved by the Group Retail Credit Manager and SME credit exposures in excess of €7.5 million have to be approved also by the
Group Credit Risk Officer ("CRO").

88

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The
credit policies are communicated throughout the Bank by means of credit manuals and circulars, supplemented by bulletins and local directives on particular issues. The Bank has
developed and implemented a credit manual for each of the above retail portfolios, following best banking practices. The credit manual is periodically revised.

The
credit-granting processes and procedures are centralized. The rationale behind this organizational structure is three-fold:



Finally,
through the development of portfolio models, our Risk Management Division is able to calculate, evaluate and monitor expected and unexpected losses for all portfolio asset
classes and segments.



The credit approval system is managed by the Credit Department.

Finansbank's
Credit Department consists of:



The
Credit Department approves loans in compliance with the applicable regulations within the framework of its own policy and principles. In 2008, seven Region Credit Approval Units have
been set up under the Credit Department. Each regional unit consists of eight persons and one manager and the number of branches that each regional unit supports, ranges from 40 to 81. Each regional
unit evaluates and approves credit demands from approximately 6,000 customers for amounts up to TRY 2 million which come from branches. The approximate total credit volume per branch is TRY
39 million. The Credit Department conducts credit and financial analysis procedures to verify whether the customer is creditworthy. Credit demands that exceed TRY 2 million are evaluated
by the Credit Approval Groups in Head Office. Also, the Credit Department uses Probability of Default models to assess the creditworthiness of SME customers in the application process and behavioral
models to monitor and measure credit risk of existing customers. The Credit Department makes every effort to ensure the collectability of the loan through receipt of a proper security compliant with
the terms and conditions set forth in the written internal procedures about credits and collaterals. Credit analysis falls under the responsibility of Financial Analysis and Inquiry Groups and in 2008
a Credit Analytic Unit

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has
been set up with the task to provide credit models improvements and credit risk measurement. All credit and measurement models are eventually approved by the Risk Management Group.

Finansbank's
Board of Directors has the right to grant loans within the limits set by Turkish Banking Law. Finansbank's Board of Directors can assign its credit granting authority to the
Credit Committee and Head Office up to 10% and 1% of capital, respectively. The Head Office can use this credit granting authority through its units, regional offices and branches.

Finansbank's
Head Office is empowered to approve exposures up to TRY 20 million.

All
loans between TRY 20 to 200 million are approved by the Credit Committee, whose members are the following:



Extensions
of credit exceeding TRY 200 million are approved by the Board of Directors.



Vojvodjanska has implemented a five-tiered credit approval system which is based on various criteria. Vojvodjanska's bodies which are responsible to
reach the decisions on facilities are the Branch Credit Committees, the Micro Loans Credit Committee, the Head Office Credit Committee, the Executive Board and the Board of Directors.

The
Branch Credit Committees can approve short-term loans to clients classified in "A" and "B" categories and according to defined branch limits which range from
€12,000 to €62,000. The Branch Credit Committees also can approve loans at the request of a client, which are collateralized with cash deposits or pledges on bonds
denominated in foreign currency issued by the Republic of Serbia, up to the maximum amount of the competence of the Head Office Credit Committee, regardless of the maturity, classification and
quantitative risk evaluation. Pursuant to Vojvodjanska's credit risk methodology, the Branch Credit Committees cannot approve loans to clients with a credit risk evaluation of 8 or above (1 to 10
scale).

The
Micro Loans Credit Committee, established on November 2, 2007, approves micro facilities up to the amount of €75,000 per group of borrowers.

Until
September 11, 2007, the Head Office Credit Committee approval authority was up to the amount of RSD 30 million (€0.36 million) per client, and
up to RSD 60 million (€0.73 million) per total exposure per client or group of related parties. On September 12, 2007, the Head Office Credit Committee approval
authority was adjusted to up to €1 million per group of borrowers, with a maximum tenor of five years for credit facilities.

Until
September 11, 2007, Vojvodjanska's Executive Board approved loans up to the amount of RSD 50 million (€610 thousand) per client, and up to RSD
100 million (€1.22 million) per total exposure per client or group of related parties. On September 12, 2007, the Executive Board's approval authority was adjusted
to up to €5 million per group of borrowers, with a maximum tenor of ten years for credit
facilities. Vojvodjanska's competent bodies have the right to reach decisions on loans granted under conditions which are in line with conditions defined in the enactments of Vojvodjanska's business
policy.

Vojvodjanska's
Board of Directors approves all exposures exceeding the above mentioned limits to corporate clients and entrepreneurs.

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The loan approval process at SABA is centralized and takes place in the Credit Risk Department located at SABA's head office. Branch managers have the authority
to grant asset-based finance loans, at a rate not below prime, for motor vehicles, up to five years old, of up to ZAR 250 thousand (approximately €20 thousand) and
cash-backed loans of up to ZAR 500 thousand (approximately €39 thousand) have been introduced, which require either pledged cash investments or pledged
investment policies as collateral.



UBB has implemented an eight-tiered credit approval system, which is based on the size of the aggregate exposure of the borrower. The three lower tiers are
authorized to approve credits of values lower than BGN 0.5 million (for loans in Bulgarian leva) or €0.25 million (for loans in euro). The fourth tier includes
Credit Center Managers who have discretion to approve exposures not exceeding BGN 1 million for SMEs or large companies. Exposures that exceed the above threshold, and are up to a
maximum of €2.5 million (for loans in euro), or BGN 5 million (for loans in Bulgarian leva), must be approved by the Intermediate Credit Committee. The UBB Credit
Committee approves exposures that exceed the competences of the Intermediate Credit Committee and are up to a maximum of US$10 million (for loans in U.S. dollars),
€10 million (for loans in euro), or BGN20 million (for loans in Bulgarian leva). The Credit Committee consists of the Executive Directors of UBB, the Head of Corporate
Banking and the Head of Risk Management.

In
2007, UBB established an Executive Credit Committee, consisting of the members of the Credit Committee, as well as the Head of the NBG Group International Credit Division. The
Executive Credit
Committee approves loan facilities exceeding US$10 million, €10 million or BGN 20 million, and up to equivalent of €80 million, provided
that these facilities do not exceed 10% of UBB own funds. Loan facilities exceeding the above limits are submitted to UBB Board of Directors for approval.



Stopanska Banka has adopted a four-tiered credit approval system for lending to companies, depending on the size of the loan. The Micro Credit
Committee approves loans for which the cumulative exposure of Stopanska Banka to a single client (legal entity) is no more than €75,000. The Credit Committee approves loans for which
the cumulative exposure of Stopanska Banka to a single client (legal entity or individual) is between €75,001 and €3 million. The Executive Corporate Credit
Committee must approve any credit exposure to a single subject (legal entity or individual) for financing in the amount above €3 million up to
€25 million. All financing that exceeds 10% of Stopanska Banka's own funds are approved by Stopanska Banka's Supervisory Board.



Commercial loan applications are approved as follows:



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Banca Romaneasca has adopted a multi-tiered credit approval system for lending, depending on the total aggregate exposure on a single debtor (considered as a
single client or group of clients). For corporate loans, the Branch Credit Committee is entitled to approve only corporate loans up to the amount of €100,000. SME Credit Center has the
approval competence on a single debtor of maximum €300,000 as follows:

Level I
(up to €150,000) the approval is given by the SME Credit Center Supervisor and the SME Credit Center Manager.

Level II
(between €150,001 up to €300,000) the approval is given by the SME Credit Center Manager and the Manager of Credit Risk Department.

The
Head Office Sub Credit Committee approves any corporate credit exposure to a single debtor between €300,001 up to €1.5 million.

The
Head Office Credit Committee approves corporate loans for which the total aggregate exposure on a single debtor with respect to credit lines, guarantees and other loan operations is
between €1,500,001 and up to €7 million.

Banca
Romaneasca's Board of Directors approves loans of any kind, letters of credit, and other loan operations, exceeding €7 million for corporate exposures, up to
the legal lending limit per one single debtor, which exceed 10% of Banca Romaneasca's own funds and related parties.

For
retail lending, any retail loan related to exposure on a single debtor totaling up to €75,000 is approved within the Retail Credit Center by different levels
depending on the type of loan. Any retail exposure on a single debtor which exceeds €75,000 and up to €150,000 and consumer loans without any collateral over
€10,000 or exposure to a single debtor over €20,000 is approved by the Head of Retail Division and the Manager of Credit Risk Department. Between
€150,000 and up to €200,000 any retail exposure is approved by the Head of Risk Division and the Head of Retail Division. Retail loans related to exposures to a single
debtor between €200,001 and up to €7 million are approved by the Head Office Credit Committee. Retail loans related to exposures to a single debtor exceeding
€7 million or over 10% of Banca Romaneasca's own funds are approved by Banca Romaneasca's Board of Directors.

Risk ManagementCredit Review Policies

The Bank and each of its subsidiaries conduct the credit risk process separately. The Group has implemented systematic control and monitoring of credit risk. The
GRMD coordinates each of the

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credit
risk procedures established by its subsidiaries. For more information on the GRMD see Item 5.B, "Liquidity and Capital ResourcesAsset/Liability,
Internal Audit and Risk Management".



Corporate
Credit Policy determines the contents of Credit Proposals ("CP") for the corporate and commercial portfolios, which are conducted at least annually depending on the
classification of the obligor. Each CP includes, among other criteria, the purpose and amounts of the facilities proposed, their main terms and conditions, key risks and mitigants, the obligor risk
rating and classification status of obligors and related counterparties, and, finally, business, financial and industry reviews and analyses.



According
to the Rating Policy, which is an integral part of the Corporate Credit Policy, all obligors of the Corporate Portfolio are rated on a 22-grade scale using
calibrated and validated rating systems with each grade corresponding to a Probability of Default.

The
Bank uses a number of obligor rating systems, assigning a borrower rating to each Corporate Banking Portfolio customer. This rating is based primarily upon quantitative criteria but
qualitative
factors are used as well. Additionally, each of the Bank's and its subsidiaries' rating systems consider the borrower's industry risk and its relative position within its peer group. As the Bank
prepares for compliance with Basel II Internal Rights Based ("IRB") methods, corporate borrower ratings are mapped to probabilities of default in order to estimate specific expected loss per obligor.

The
Bank manages its corporate credit granting function, controls credit exposures and ensures regulatory compliance with a set of obligor, industry and large exposure limits. The
assignment of obligor limits is directly related to the obligor risk rating.



The
Bank has established and implemented an obligor classification system in order to facilitate early recognition of problems in various credit relationships and proactively take
remedial action. The classification process is the responsibility of the Credit Division. There are five classification categories: Current, Watch List, Sub-standard, Doubtful and Loss.
The obligor classification determines the frequency of the credit reviews and the level of credit approval authority.



In
2007, the Bank completed its estimation of key credit risk measurement variables, including probability of default, loss given default and exposure at default. Simultaneously, new
credit risk management and rating systems for consumer credit and SMEs were completed and expected loss was estimated internally for these portfolios.

The
Retail Banking Collection Division holds responsibility for monitoring and collecting past due amounts for all retail portfolios and focuses on reducing delinquency rates,
facilitating early awareness of defaulted loans, ensuring proactive remedial management and reducing costs, achieving a higher overall retail business profitability.

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Responsibility of loan tracking lies primarily with the branches and secondarily with the Units of District Offices, the Directorate General Loans Department and
Loans Tracking Unit.

The
loan tracking process consists of ensuring adherence to loan covenants, timely identification of existing and potential problematic loans, determination of the remedial measures of
existing and potential non-performing loans, implementation of such measures and reporting to management on the quality and structure of the loan portfolio.

Credit
risk is monitored by Risk Management and the Credits Department. The comprehensive and well-documented credit system is the backbone of credit risk management. The
Credit Policy Manual covers credit authorization activities, concentration limits, credit monitoring activities, credit risk classification systems (rating, scoring), credit risk strategies and
guidelines. In order to evaluate the Bank's retail and non-retail loan portfolios, two risk committees were established. The Retail Risk Committee and the Corporate Risk Committee meet
monthly and determine principles and policies regarding their respective portfolios.

Rating
systems and scorecards are in place to assist with risk management for the credit portfolio. These models are reviewed and validated by an independent unit within risk management.

Total
loan portfolio is monitored by the Credit Risk Management Unit and concentration limits are applied to the loan portfolio to maintain credit quality at the pre-agreed
level. Limit categories are defined as single borrower limits, group of connected borrowers' limit, industry limit, internal rating limits, top 50 customers' exposure limit and top 20 groups' exposure
limit. Risk management reports present a full review of the credit portfolio from various aspects and enable monitoring of the limits, and are submitted to the board of directors on a monthly basis.

The
capital charge for credit risk is considered as an indicator of the level of risk of loan portfolios and is currently reported based on the "Standardized Approach" as defined by the
Bank of International Settlements ("BIS"), which weighs credit risk according to the type of the facility and the collateral.

Finansbank
has outlined its Basel II roadmap which includes all the necessary steps to comply with the IRB approaches within the timeline agreed by regulators. The Basel II roadmap
consolidates model development projects for Probability of Default, Loss Given Default and Exposure at Default for retail and non-retail portfolios as well as subsidiaries; IT Projects for
data collection and model implementation; validation of models in use; detailed bottom-up calculations of economic capital ("ECAP") and risk adjusted return on capital. After the
development of a capital
portfolio model and calculation of ECAP, the Risk Adjusted Performance systems will be developed as well.



Loans, other placements, guarantees and other off balance sheet exposures are classified into five categories A, B, C, D and E in accordance with the
requirements of the regulations adopted by the National Bank of Serbia. Loans are classified in accordance with the evaluation of their collectability, number of days in arrears, and the general
financial background of the counterparty. The loan portfolio is tested semi-annually for impairment, while special additional allowances against potential losses may be calculated
quarterly by applying the percentages 1%, 5%, 25%, 50% and 100% on the amounts of the particular exposures classified into categories A, B, V, G and D respectively, as per the regulations
adopted by the National Bank of Serbia.

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SABA focuses on working capital facilities and asset-based finance for SMEs and facilities are reviewed on an annual basis in light of the most recent financial
statements for clients.



Outstanding business loans to large corporations are reviewed monthly by the responsible credit officers and by UBB Credit Portfolio Review Committee, which is
responsible for reviewing general categories of risk and implementing risk guidelines. Loans to SMEs are reviewed on a monthly basis. All loans are reclassified monthly according to a risk assessment
based on a four-point risk-rating system. The review is focused on the largest and most recently granted loans and a random sample of other loans. Interim reviews are
undertaken during semi-annual audit reviews. UBB Credit Portfolio Review Committee submits to the Credit Committee monthly reports related to the quality status of loans. At least once a
year, UBB executive management presents a full report on the quality of the UBB loan portfolio to the UBB Board of Directors.



Stopanska Banka applies a six-point risk rating system for classifying loans. Loans are rated in categories A0, A1, B, C, D, and E, with E being the
highest risk category of non-performing claims. Loans are classified depending mainly on the length of time they have been in arrears. Additionally, collateral coverage ratios, as well as
quality and marketability of collateral are considered in risk classification. Loans in category A have been in arrears for less than 15 days, while those in category E have been
in arrears for over 365 days. Allowances for loan losses are based on specified allowance coefficients which vary in proportion to the risk attributable to each one of the six loan categories.



NBG Cyprushas adopted the Bank's risk rating system. A special Credit Provisions Committee presents a report
annually to NBG Cyprus' Executive Credit Committee on the quality of NBG Cyprus' credit portfolio.



Banca Romaneasca applies a five-point risk rating system. The risk rating assigned to a loan is determined by three factors: initiation of legal
proceedings, financial performance and debt service. The initiation of legal proceedings against a debtor results in the highest risk rating. A debtor's financial performance is measured by a
combination of quantitative and qualitative criteria, such as the debtor's quantitative financial performance as well as his or her general background. Banca Romaneasca evaluates these factors and,
after receiving a client's annual and semi-annual financial statements, determines the risk rating on a semi-annual basis (in April and August).

Allowance for Loan LossesMethodology

We maintain an allowance for loan losses sufficient to absorb probable estimated losses inherent in the loan portfolio. The balance of the allowance for loan
losses is based on ongoing assessments of the probable estimated losses inherent in the loan portfolio that are performed by those members of the Group's management who are responsible for the
respective loan types, subject to the approval of the Group's senior management. Guidelines have been established for the assessment process and are continuously monitored and improved.

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In
general, the allowance incorporates the measurement methods, income recognition and disclosures as provided for in the following accounting pronouncements:



Specifically,
our methodology has five primary components described below:



The
amount of unallocated allowance, decreased in 2007, as a result of the improvement of our methodology for calculating loan loss allowances by increasingly incorporating recent loan
experience as well as geographical and industry segment concentrations.

The
allowance for credit losses is based upon estimates of probable losses inherent in the loan portfolio. The amount actually observed for these losses can vary significantly from the
estimated

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amounts,
but we expect that the consistent application of our methodology described above will reduce such variances. To ensure this is the case, we evaluate our loans and the methodologies applied
thereto, including loss estimation percentages, on a regular basis based on management's judgment of the changing dynamics within the portfolio. For instance, our coefficient analysis incorporates
loss and delinquency data for the most recent three-year period, and our analysis of homogeneous loans incorporates loss and delinquency data for the most recent two-year
period. See Item 4.E, "Selected Statistical DataRisk ManagementCredit Review
Policies".

The
following table sets forth the loan loss allowances by methodology for the last five years to which the methodology was applied to respective loan balances.

|                                                       |  | Year ended December 31,
|------------------------------------------------------ |  | -----------------------
|
|
|Specific allowances                                    |  | 308,063                
|Coefficient analysis                                   |  | 89,535                 
|Homogeneous analysis                                   |  | 363,867                
|Foreign loans                                          |  | 192,851                
|Unallocated                                            |  | 73,080                 
|                                                       |  |                        
|Total loan loss allowance from continuing operations   |  | 1,027,396              
|Total loan loss allowance from discontinued operations |  | 20,097                 
|                                                       |  |                        
|Total loan loss allowance                              |  | 1,047,493              
|                                                       |  |                        

The decrease in specific allowances reflects the increased write-offs of corporate loans in 2007. The decrease in homogeneous
allowances reflects the increased write-offs of unsecured loans as well as the refinement of our methodology for the mortgage portfolio, which takes into account the loss given default and
probability of default consistent with Basel II IRB methodology.

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The
following table illustrates the activity in the loan loss allowance balance over the previous five years:

|          |                                                                                      | Year ended December 31, |          
|--------- | ------------------------------------------------------------------------------------ | ----------------------- | ---------
|
|
|Domestic: |                                                                                      |                         |          
|          | Balance at beginning of year                                                         |                         | 775,025  
|          | Add: Allowances for probable loan losses from continuing operations                  |                         | 126,331  
|          | Add: Allowances for probable loan losses from discontinued operations                |                         |          
|          |                                                                                      | Write-offs              |          
|          |                                                                                      | Recoveries              |          
|          |                                                                                      |                         |          
|          | Less: Net write-offs                                                                 |                         | (82,527  
|          | Exchange differences and other variations                                            |                         | (2,153   
|          |                                                                                      |                         |          
|          | Domestic balance at end of year                                                      |                         | 816,676  
|          |                                                                                      |                         |          
|Foreign:  |                                                                                      |                         |          
|          | Balance at beginning of year                                                         |                         | 236,120  
|          | Less: Amounts attributable to discontinued operations                                |                         |         
|          | Add: Allowance (upon acquisition) attributable to companies acquired during the year |                         | 3,766    
|          | Add: Allowances for probable loan losses from continuing operations                  |                         | 12,730   
|          | Add: Allowances for probable loan losses from discontinued operations                |                         | 1,482    
|          | Write-offs                                                                           |                         | (19,143  
|          | Recoveries                                                                           |                         | 9,011    
|          |                                                                                      |                         |          
|          | Less: Net write-offs                                                                 |                         | (10,132  
|          | Exchange differences and other variations                                            |                         | (13,149  
|          |                                                                                      |                         |          
|          | Foreign balance at end of year                                                       |                         | 230,817  
|          |                                                                                      |                         |          
|          | Total balance at end of year                                                         |                         | 1,047,493
|          |                                                                                      |                         |          

Key ratios related to the activity in our loan loss allowance for the previous five years to which our loan loss methodology was applied are as
follows:

|                                                                         |  | Year ended December 31,
|------------------------------------------------------------------------ |  | -----------------------
|
|
|Allowance for loan losses as a percent of total loans                    |  | 4.6                    
|Allowance for probable loan losses as a percent of net loans written-off |  | 151.7                  
|Recoveries of loans to loans written-off in the previous year            |  | 8.1                    
|Net loans written-off to average loans outstanding                       |  | 0.4                    
|Allowance for loan losses as a percent of non-accruing loans             |  | 76.7                   

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Non-Performing Loans, Allowance for Loan Losses, and Loan Loss Experience

Non-Performing, Delinquent and Restructured Loans.The table below shows (1) all loans that are
non-performing, which are accounted for on a nonaccrual basis, (2) all accruing loans which are contractually past due 90 days or more as to principal or interest payments
and (3) loans which are not included in (1) or (2) which are troubled debt restructurings for each of the five years ended December 31, 2003, 2004, 2005, 2006 and 2007.

|                                                |                            | Year ended December 31,
|----------------------------------------------- | -------------------------- | -----------------------
|
|
|Domestic loans:                                 |                            |                        
|Non-performing past due and restructured loans: |                            |                        
|Accruing loans:                                 |                            |                        
|                                                | Past due 90 days180 days  |                        
|                                                | Past due 180 days365 days |                        
|                                                |                            |                        
|Total accruing loans                            |                            | 73,692                 
|Non-accruing loans:                             |                            |                        
|                                                | Past due 90 days180 days  |                        
|                                                | Past due 180 days365 days |                        
|                                                | Past due 365 days or more  |                        
|                                                |                            |                        
|Total non-accruing loans                        |                            | 1,073,632              
|                                                |                            |                        
|Foreign loans:                                  |                            |                        
|Non-performing past due and restructured loans: |                            |                        
|Accruing loans:                                 |                            |                        
|                                                | Past due 90 days180 days  |                        
|                                                | Past due 180 days365 days |                        
|                                                |                            |                        
|Total accruing loans                            |                            |                       
|Non-accruing loans:                             |                            |                        
|                                                | Past due 90 days180 days  |                        
|                                                | Past due 180 days365 days |                        
|                                                | Past due 365 days or more  |                        
|                                                |                            |                        
|Total non-accruing loans                        |                            | 291,613                
|                                                |                            |                        

"Troubled debt restructurings" not included in the above table amount to €21.9 million and
€4 million in 2006 and 2007 respectively.

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The
following table sets forth the amount of loans of the Group which were non-performing, as determined by the banks in the Group, as at December 31, 2003, 2004,
2005, 2006 and 2007.

|                                    |                      | Year ended December 31,
|----------------------------------- | -------------------- | -----------------------
|
|
|Group customer loans (gross amount) |                      | 22,933,040             
|Domestic loans:                     |                      |                        
|                                    | Non-performing loans |                        
|Foreign loans:                      |                      |                        
|                                    | Non-performing loans |                        
|                                    |                      |                        
|Total non-performing loans          |                      | 1,365,245              
|                                    |                      |                        

The Group's Treatment of Non-Performing Loans

Greek regulations with respect to problem loans differ in certain respects from those followed by banks in other countries, including the United States. The
accounting processes applied by the Group for problem loans are described below.

Treatment of Non-Performing Loans in Greek Banking Operations

Non-performing
loans are defined generally as those loans where principal or interest is more than 180 days in arrears, except for consumer and credit card loans which
are considered non-performing when they are 90 days in arrears.

The
total value of non-performing loans for the Group was €1,647 million at December 31, 2007. This corresponds to 3.0% of the Group's loans
outstanding at the same date. Of the Group's non-performing loans, €1,197 million or 72.6% were held by the Bank. This amount represented 3.1% of the Bank's
portfolio.

Non-performing
loans had tended to remain on the Bank's balance sheets significantly longer than would be the case with banks in other Western European countries and the
United States.

The
Bank generally initiates action to recover or settle outstanding amounts as soon as a loan is determined to be non-performing. The Bank has special branches responsible
for the collection of non-performing loans in coordination with the central non-performing loan divisions (Corporate and Retail).

In
addition, the Bank is proceeding with the restructuring of certain non-performing loans. The terms on which non-performing loans are restructured vary
depending upon several factors including how long the loan has been classified as non-performing and the value of the collateral underlying the loan. Restructuring terms generally involve
a discount to the total amount of unpaid interest owed to the Bank under the loan and a revised interest rate and repayment schedule. Non-performing loans that have been restructured
remain classified as non-performing loans until they are repaid in full and interest does not accrue with respect to such loans. If the borrower performs under the restructuring
arrangements, however, the Bank ceases to pursue legal action against the borrower under the original loan.

The
Bank's non-performing loans in the workout stage are monitored internally by the credit staff at the Bank's headquarters, certain regional branches and specialized
branches which handle only non-performing loans. The prospects of recovery and the estimated losses are reviewed. The Bank establishes provisions, reserve levels and write-offs
for these loans. In addition, the Bank's internal audit department examines loan portfolios at branches to determine how loans are to be classified.

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Banks
in Greece are allowed for tax purposes to take general provisions for loan losses up to 1% of the average annual balance of their loan portfolio, except for loans extended to
state-owned organizations or loans guaranteed by the Hellenic Republic. Specific provisions for other loan losses are also permitted under relevant Greek tax laws. However, tax penalties apply where
loans written off against specific provision are subsequently recovered. Under Greek tax regulations, non-performing loans can only be written off after all legal remedies for recovery,
including the realization of collateral, have been exhausted.

Treatment of Non-Performing Loans in Turkish Banking Operations

According
to Turkish regulations, loans are classified in five categories depending on their current status and how many days they are past due:

Category

Description

Minimum Provision under Central Bank of Turkey RulesI

Standard Loans

II

Watch Loans

III

Loans past due over 90 days

20
%IV

Loans past due over 180 days

50
%V

Loans past due over 360 days

100
%


According to local regulations, all receivables which have been classified in the third, fourth and fifth categories and the collection of whose
principal and interest has been delayed for more than 90 days from the due date are deemed non-performing receivables.

Finansbank's
policy is to classify loans according to the above-mentioned categories.

Finansbank
analyzes its loan book on a portfolio basis for loans smaller than US$1 million by taking into account historical default and recovery rates. For loans greater than
US$1 million a specific impairment test is performed by calculating present value of estimated future cash flows. Any additional impairment raised in both cases is treated as portfolio
impairment.

Treatment of Non-Performing loans in Foreign Banking Operations



Vojvodjanska
considers loans to be non-performing when interest has not been paid for 90 days, in accordance with internal regulations of the bank, and stops accruing
interest. Interest accrued but not collected is provisioned 100%. Vojvodjanska begins legal action against borrowers on a case-by-case basis. For borrowers that are legal
entities, it generally freezes the company's current accounts first, and after 90 days commences foreclosure proceedings. For mortgage loans to individuals, legal action commences when the loan
is approximately 120 days past due. The bank has its own Non-Performing Loan Division in charge of collecting non-performing loans. At the end of 2007, Vojvodjanska also
began to outsource the collection of some consumer loans to Serbian companies.

In
some cases, when Vojvodjanska assesses that the company in default has only temporary financial problems but has potential for successful operations in the near future, the bank
reschedules or restructures its non-performing loans. The restructuring depends on the Vojvodjanska's assessment of the ability of the client to regularly repay the loan in the future and
the quality of the existing or the additional collateral the client is ready to offer. In some cases when the client is categorized as "C", "D" or "E" it is possible for the restructuring to include
some partial write-off. In accordance with internal regulations, rescheduled loans maintain the same classification until full repayment. New loans that can be possibly granted to these
companies under rescheduling should have the additional

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approval
of the Non-Performing Loan Division. See Item 4.E, "Selected Statistical DataRisk ManagementCredit Review
PoliciesVojvodjanska".



The
South African Reserve Bank has issued guidelines on how loans should be categorized and what minimum provision should be raised, a summary of which is set forth below.

1    Current

1% general provision2    Special Mention

2% specific provision3    Sub-standard

20% specific provision net of collateral4    Doubtful

50% specific provision net of collateral5    Loss

100% specific provision net of collateral


SABA strictly adheres to these guidelines and reclassifies the status of its loan accounts on the following basis:





SABA
analyzes its loan portfolio by taking into account historical default and recovery rates product by product. Any additional impairment raised is treated as portfolio impairment and
is above and beyond the provision already raised in terms of South African Reserve Bank guidelines.



UBB
classifies loans as non-performing if they are in arrears for more than 90 days. Interest payments that are overdue for more than 90 days are accrued as an
off-balance sheet item and are not capitalized. UBB charges penalties on overdue balance sheet interest in accordance with the terms of the relevant loan agreement. These penalties are
accrued as an off-balance sheet item. When overdue amounts are fully repaid, UBB renews its balance sheet accruals and it suspends accrual of interest income when loans become doubtful of
collection (non-performing). Such income is excluded from interest income until received.



Stopanska
Banka considers loans to be non-performing and stops accruing interest on such loans when interest has not been paid for 90 days, in accordance with legal
regulations of the National Bank of FYROM. Interest accrued but not collected is provisioned 100%. Stopanska Banka begins legal action against borrowers on a case-by-case
basis. For borrowers that are legal entities, the bank applies

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a
45-day policy for enforced collection for delayed repayment, where generally the company current accounts are first frozen, followed by activation of other instruments of collateral if
necessary, and after 90 days the bank commences foreclosure proceedings. For mortgage loans to individuals, legal action commences when the loan is approximately 90 days past due.
Stopanska Banka has its own Non-Performing Loan Division in charge of collecting non-performing loans. In 2004, Stopanska Banka began outsourcing the collection of consumer
loans to local companies.

In
some cases, when Stopanska Banka assesses that the company has only temporary financial problems but has potential for successful operations in the near future, it reschedules or
restructures its non-performing loans. The restructuring depends on the Stopanska Banka's assessment of the potential of the client for regular payment of loans in the future and the
existing or additional collateral that the client is ready to offer. In some cases when the client is categorized as "D" or "E" it is possible for the restructuring to include some partial
write-offs of interest or default interest. In accordance with current central bank regulations, rescheduled loans remain classified as non-performing for at least six months
after rescheduling. After that period they can be gradually upgraded to a higher category only if the client regularly meets its obligations to Stopanska Banka.



NBG
Cyprus adheres to the Central Bank of Cyprus instructions for the classification of credit facilities as non-performing. A credit facility is considered
non-performing if its balance is in excess of its approved limit or if repayment, in regard to principal or interest or other income, is in arrears for more than three months. NBG Cyprus
stops accruing interest on non-performing loans when more than three monthly installments fall in arrears. Such income is excluded from interest income until it is received. Overdraft
accounts are considered to be non-performing when they have exceeded their approved limits by 5% for more than three consecutive months.

Since
February 2006 NBG Cyprus has established a streamline Workout Sector in order to manage and minimize non-performing loans. The Workout Sector Committee approves any
decision on whether to commence legal actions with respect to non-performing loans and overdraft accounts on a case-by-case basis and transfers them to the
recoveries sector. Recoveries departments with trained personnel have been set up in each district for the intensive and effective collection of debts.

NBG
Cyprus occasionally restructures credit facilities that are adversely classified and/or categorized as non-performing. The terms on which non-performing
credit facilities are restructured vary depending upon several factors including how long they have been classified as non-performing and the value of the underlying collateral.
Restructuring terms generally involve a revised interest rate, repayment schedule and or obtaining additional security and guarantees. Restructured loans remain classified as
non-performing for a period of 180 days after the commencement of the new repayment schedule.



Banca
Romaneasca classifies loans as non-performing when any amount of principal and/or interest is past due for more than 90 days. Banca Romaneasca employs remedial
management procedures applying to any loan falling under the non-performing loan category. Under the remedial procedures, the usual action performed by Banca Romaneasca in order to recover
the amounts due is to enforce or execute the collaterals through court orders.

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During
2006 and 2007, the Group wrote off €277.3 million and €341.6 million, respectively, in non-performing loans from its
continuing operations and made new provisions net of recoveries of €261.6 million and €190.8 million, respectively, with regards to the loan portfolio.
The table below shows allowances for loan losses for the Group by loan category for each of the years ended December 31, 2003, 2004, 2005, 2006 and 2007.

|                |                                 | 2003 |           | 2004 |       | 2005 |           | 2006 |       | 2007
|--------------- | ------------------------------- | ---- | --------- | ---- | ----- | ---- | --------- | ---- | ----- | ----
|
|
|Greek residents |                                 |      |           |      |       |      |           |      |       |     
|Consumer        |                                 |      |           |      |       |      |           |      |       |     
|                | Residential mortgages           |      | 190,000   |      | 29.6  |      | 123,300   |      | 31.6  |     
|                | Credit card                     |      | 118,271   |      | 5.3   |      | 113,500   |      | 5.2   |     
|                | Auto financing                  |      |          |      | 1.4   |      |          |      | 1.3   |     
|                | Other consumers                 |      | 56,109    |      | 5.7   |      | 64,100    |      | 6.8   |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total                           |      | 364,380   |      | 42.0  |      | 300,900   |      | 44.9  |     
|                |                                 |      |           |      |       |      |           |      |       |     
|Commercial      |                                 |      |           |      |       |      |           |      |       |     
|                | Industry and mining             |      | 102,929   |      | 9.1   |      | 174,223   |      | 10.6  |     
|                | Small-scale industry            |      | 49,802    |      | 3.1   |      | 53,618    |      | 3.0   |     
|                | Trade                           |      | 77,825    |      | 10.8  |      | 144,150   |      | 10.8  |     
|                | Construction                    |      | 10,724    |      | 1.6   |      | 35,073    |      | 1.6   |     
|                | Tourism                         |      | 93,165    |      | 1.3   |      | 55,678    |      | 1.0   |     
|                | Shipping and transportation     |      | 25,394    |      | 3.5   |      | 29,658    |      | 3.2   |     
|                | Commercial mortgages            |      |          |      | 0.6   |      |          |      | 1.0   |     
|                | Public sector                   |      | 6         |      | 6.4   |      |          |      | 3.9   |     
|                | Other                           |      | 44,122    |      | 4.6   |      | 58,221    |      | 4.5   |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total                           |      | 403,967   |      | 41.0  |      | 550,621   |      | 39.6  |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total Greek residents loans     |      | 768,347   |      | 83.0  |      | 851,521   |      | 84.5  |     
|                |                                 |      |           |      |       |      |           |      |       |     
|Foreign         |                                 |      |           |      |       |      |           |      |       |     
|Consumer        |                                 |      |           |      |       |      |           |      |       |     
|                | Residential mortgages           |      | 854       |      | 1.1   |      | 1,581     |      | 1.3   |     
|                | Credit card                     |      | 2,675     |      | 0.1   |      | 2,656     |      | 0.1   |     
|                | Auto financing                  |      | 6         |      | 0.1   |      | 2,545     |      | 0.1   |     
|                | Other consumers                 |      | 16,583    |      | 1.2   |      | 34,350    |      | 1.5   |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total                           |      | 20,118    |      | 2.5   |      | 41,132    |      | 3.0   |     
|                |                                 |      |           |      |       |      |           |      |       |     
|Commercial      |                                 |      |           |      |       |      |           |      |       |     
|                | Industry and mining             |      | 86,797    |      | 3.9   |      | 52,838    |      | 5.0   |     
|                | Small-scale industry            |      | 2,872     |      | 0.4   |      | 4,238     |      | 0.6   |     
|                | Trade                           |      | 39,562    |      | 2.7   |      | 55,312    |      | 2.7   |     
|                | Construction                    |      | 3,181     |      | 1.2   |      | 7,147     |      | 1.3   |     
|                | Tourism                         |      | 2,356     |      | 0.4   |      | 3,263     |      | 0.4   |     
|                | Shipping and transportation     |      | 36,297    |      | 1.0   |      | 33,011    |      | 1.2   |     
|                | Commercial mortgages            |      | 2,429     |      | 2.7   |      | 331       |      | 0.6   |     
|                | Public sector                   |      | 128       |      | 0.2   |      | 33        |      | 0.1   |     
|                | Other                           |      | 12,326    |      | 2.0   |      | 5,307     |      | 0.6   |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total                           |      | 185,948   |      | 14.5  |      | 161,480   |      | 12.5  |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total foreign loans             |      | 206,066   |      | 17.0  |      | 202,612   |      | 15.5  |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Unallocated                     |      | 73,080    |      |      |      | 61,079    |      |      |     
|                |                                 |      |           |      |       |      |           |      |       |     
|                | Total Allowance for loan losses |      | 1,047,493 |      | 100.0 |      | 1,115,212 |      | 100.0 |     
|                |                                 |      |           |      |       |      |           |      |       |     

---

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An analysis of the Group's write-offs and recoveries for non-performing loans for December 31, 2003, 2004, 2005,
2006 and 2007 is presented in the following table

|                 |                                               | Year ended December 31,
|---------------- | --------------------------------------------- | -----------------------
|
|
|Write-offs       |                                               |                        
|Greek Residents: |                                               |                        
|                 | Commercial and industrial                     |                        
|                 | Real estateconstruction                      |                        
|                 | Real estatemortgage                          |                        
|                 | Installment loans to individuals              |                        
|                 |                                               |                        
|                 | Total write-offs for loans to Greek residents |                        
|                 |                                               |                        
|Foreign:         |                                               |                        
|                 | Commercial and industrial                     |                        
|                 | Real estateconstruction                      |                        
|                 | Real estatemortgage                          |                        
|                 | Installment loans to individuals              |                        
|                 |                                               |                        
|                 | Total write-offs for foreign loans            |                        
|                 |                                               |                        
|                 | Total write-offs                              |                        
|                 |                                               |                        
|Recoveries       |                                               |                        
|Greek Residents: |                                               |                        
|                 | Commercial and industrial                     |                        
|                 | Real estatemortgage                          |                        
|                 | Governments and official institutions         |                        
|                 |                                               |                        
|                 | Total recovery on loans to Greek residents    |                        
|                 |                                               |                        
|Foreign:         |                                               |                        
|                 | Commercial and industrial                     |                        
|                 | Real estateconstruction                      |                        
|                 | Real estatemortgage                          |                        
|                 | Installment loans to individuals              |                        
|                 |                                               |                        
|                 | Total recovery on foreign loans               |                        
|                 |                                               |                        
|                 | Total recoveries                              |                        
|                 |                                               |                        

Off-Balance Sheet Items

See Item 5.E, "Operating and Financial Review and ProspectsOff-Balance Sheet
Arrangements".

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Liabilities

Deposits

The following table shows details of the Group's average deposits and average interest rates thereon, for the Group's continuing domestic and foreign operations,
for each of the three years ended December 31, 2005, 2006 and 2007:

|                                     |                                         | Year ended December 31,
|------------------------------------ | --------------------------------------- | -----------------------
|
|
|
|Domestic Operations:                 |                                         |                        
|Deposits by Greek residents:         |                                         |                        
|                                     | Demand deposits                         |                        
|                                     | Savings                                 |                        
|                                     | Time deposits                           |                        
|                                     | Interbank                               |                        
|                                     | Other                                   |                        
|Non-Greek residents or foreigners:   |                                         |                        
|                                     | Demand deposits                         |                        
|                                     | Savings                                 |                        
|                                     | Time deposits                           |                        
|                                     | Interbank                               |                        
|Deposits in foreign banking offices: |                                         |                        
|                                     | Banks located in foreign countries      |                        
|                                     | Other foreign demand deposits           |                        
|                                     | Other foreign time and savings deposits |                        
|                                     |                                         |                        
|Total deposits                       |                                         | 44,960,606             
|                                     |                                         |                        

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The table below shows the amount outstanding of time certificates of deposit and other time deposits in amounts of US$100,000 or more of the
Group's continuing operations by remaining maturity at December 31, 2007. Determinations of whether certain time deposits in currencies other than the U.S. dollar are in amounts of US$100,000
or more have been based on exchange rates at December 31, 2007.

|                     |                                                                                       | Year ended
December 31, 2007
|-------------------- | ------------------------------------------------------------------------------------- | ----------------------------
|
|Domestic Operations: |                                                                                       |                             
|                     | Time certificates of deposit in amounts US$100,000 or more:                           |                             
|                     |                                                                                       | 3 months or less            
|                     |                                                                                       | Over 3 through 6 months     
|                     |                                                                                       | Over 6 through 12 months    
|                     |                                                                                       | Over 12 months              
|                     | Other time deposits of US$100,000 or more by time remaining until maturity:           |                             
|                     |                                                                                       | 3 months or less            
|                     |                                                                                       | Over 3 through 6 months     
|                     |                                                                                       | Over 6 through 12 months    
|                     |                                                                                       | Over 12 months              
|                     |                                                                                       |                             
|                     | Total time certificates of deposit and other deposits in amount of US$100,000 or more |                             
|                     |                                                                                       |                             
|Foreign Operations:  |                                                                                       |                             
|                     | Time certificates of deposit in amounts US$100,000 or more:                           |                             
|                     |                                                                                       | 3 months or less            
|                     |                                                                                       | Over 3 through 6 months     
|                     |                                                                                       | Over 6 through 12 months    
|                     |                                                                                       | Over 12 months              
|                     | Other time deposits of US$100,000 or more by time remaining until maturity:           |                             
|                     |                                                                                       | 3 months or less            
|                     |                                                                                       | Over 3 through 6 months     
|                     |                                                                                       | Over 6 through 12 months    
|                     |                                                                                       | Over 12 months              
|                     |                                                                                       |                             
|                     | Total time certificates of deposit and other deposits in amount of US$100,000 or more |                             
|                     |                                                                                       |                             

Short-term Borrowings

The table below shows outstanding amounts of short-term borrowings of Group companies for each of the three years ended December 31, 2005, 2006
and 2007. 99.9% of the year-end balances relate to borrowings of Finansbank, which includes the syndication loan obtained by Finansbank on November 19, 2007 amounting to
US$425 million with interest rate set to LIBOR plus 0.25%.

|                                           |  | Year ended December 31, | 
|------------------------------------------ |  | ----------------------- | 
|
|
|End of period                              |  |                        | 
|Maximum month-end amount during the period |  |                        | 
|Average amount                             |  |                        | 
|Weighted average interest rate             |  |                        | 

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ITEM 4A   UNRESOLVED STAFF COMMENTS

There are no unresolved written comments from the SEC regarding periodic Exchange Act reports received not less than 180 days before the end of the fiscal
year ended December 31, 2007.

ITEM 5    OPERATING AND FINANCIAL REVIEW AND PROSPECTS

General

The following review is based upon the selected financial data prepared in accordance with U.S. GAAP and should be read in conjunction with our
U.S. GAAP Financial Statements and the notes explaining those financial statements included elsewhere in this Annual Report. The financials we refer to herein present Atlantic Bank of New York
and NBG Canada as discontinued operations.

Overview

We are the largest financial institution in Greece in terms of loans and market capitalization, according to an internal review of published financial statements
of Greek banks. We provide a wide range of
financial services, including retail (such as mortgage lending and consumer lending), commercial and investment banking services and asset management and insurance, through our network of branches and
subsidiaries in Greece and abroad. Our domestic activities for the year ended December 31, 2007, accounted for 53.3% of our net income before taxes from continuing operations while our
international activities accounted for the remaining 46.7%. Our principal sources of income have historically been interest earned on customer loans and debt securities as well as commissions. We fund
our lending activities and our securities portfolio principally through customer deposits in our branch network. As at December 31, 2007, our gross loans-to-deposits
ratio was 83.1%.

Outside
Greece, the Group is active in eight countries: Turkey, Bulgaria, Romania, Serbia, Albania, FYROM, Cyprus and South Africa, via 1,605 branches, with approximately 55.7% of our
workforce employed in SEE. For the year ended December 31, 2007, SEE's contribution to the Group's net income before taxes was €215 million, while Turkey's contribution
to Group net income before taxes was €375.7 million. As of December 31, 2007, the total population of SEE, Greece and Turkey, is approximately 128 million. For
more information on the political and financial environment we operate in and the risks associated with it, see Item 3.D, "Risk Factors".

One
of our strategies is to increase our operating efficiency. As part of this strategy, we are seeking to enhance our revenue generation potential through sales of businesses outside of
our core markets and by modifying our mix of assets in order to reduce the proportion of low yielding assets in our portfolio. Concurrently, we are increasing our lending to market sectors with higher
interest rate margins, such as the small business, mortgage and consumer segments. We are also streamlining our structure in order to improve efficiency, reduce costs and facilitate cross-selling
among various divisions and companies within the Group. One of our goals is to preserve our asset quality and reduce the level of non-performing loans, which has had a significant negative
impact on our results of operations in the period under review and in prior years. We are further seeking to increase our fee-related activities, primarily commissions from retail services
and products as well as those related to investment banking and asset management, although these areas are subject to variations in market conditions.

Recently,
events affecting asset-backed CDO's, the US sub-prime residential mortgage market and leveraged finance, have resulted in increased market volatility and adverse changes in the
liquidity and value of assets. We have no exposure to the US sub-prime residential mortgage sector.

Key Factors Affecting Our Results of Operations

Non-Performing Loans.Our level of non-performing loans continues to decline from 3.4% at
December 31, 2006, to 3.0% of our total customer loans portfolio at December 31, 2007. All loans,

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whether
to individuals or businesses, are assessed on the basis of our credit approval and risk management procedures. Furthermore, the accumulation of long-term historical data within the
Bank with regard to the creditworthiness of the greater part of the economically active population of the country has helped to implement a strategy of targeting creditworthy retail customers.

Furthermore,
non-performing loans have remained on our balance sheet significantly longer than would be the case for banks in other Western European countries.
Write-offs of collateralized non-performing loans can only be made after all legal remedies for recovery, including realization of collateral, have been exhausted. Our
write-offs of non-performing collateralized loans in recent years have been higher than in previous years, which reflects the fact that we have exhausted all legal remedies for
recovery of many loans. In addition, in line with our increased consumer lending, we write off consumer loans which are more than 18 months past due and which are not collateralized. The
write-off of these loans does not require the exhaustion of all legal remedies. See Item 4.E, "Selected Statistical DataCredit
QualityNon-Performing Loans, Allowance for Loan Losses and Loan Loss Experience".

As
part of our strategy to preserve the quality of our loan portfolio, we have improved the methods of assessing the credit quality in our loan portfolio. We have provided for all
non-performing loans existing as at December 31, 2007, taking into account any collateral with respect to such loans. We have also provided for other probable losses inherent in the
portfolio to the extent such losses are reasonably estimable. See "Selected Statistical DataAllowance for Loan
LossesMethodology" in Item 4.E. In Greece, we have taken and are continuing to take steps to improve our credit approval and risk management procedures in
order to reduce the amount of non-performing loans that occur in the future. We have developed and implemented a comprehensive credit manual to govern the lending process, and have fully
implemented new credit review and monitoring procedures, which focus on the borrower's cash flow and ability to repay as well as on collateral values. See Item 4.E,
"Selected Statistical DataCredit Quality".One objective in restructuring our credit function was to ensure consistency in the loan
approval process throughout the Bank while tailoring this process to meet the specific needs of the Bank's borrowers. We have therefore established centralized credit centers, taking the
decision-making power for loan approval out of the hands of the branches. We have also set up special divisions to monitor and strengthen our position with respect to delinquent commercial and
consumer loans by working flexibly with clientsrestructuring payments and taking additional collateralto help them meet their payment obligations.

Outside
of Greece, we are in the process of fully implementing credit approval and credit review policies throughout the Group's lending operations in order to reduce
non-performing loans that occur in the future. For a discussion of these policies at the various Group banks, see Item 4.E, "Selected Statistical
DataCredit Quality".

Compounding Law.On July 29, 2004, the Hellenic Republic adopted the Compounding Law, known locally as the "Panotokia"
law. Effective August 4, 2004, the Compounding Law provides, among other things, that the total amount due (including, without limitation, capital, accrued interest, compound interest and
expenses) under any form of credit or loans granted by Greek banks (including the Bank) to their customers, may not exceed certain limits. Generally, this limit is 300% of the initial principal of the
loan for most of our customers. Implementation of the Compounding Law has obligated us to write off non-performing loans (interest and capital) that were backed by collateral in excess of
the 300% threshold in the amount of €57.7 million in 2005. In 2006, the amount of write-offs was significantly reduced to €1.7 million. In
2007, the amount of write-offs was €1.5 million. In the future, the effects of the Compounding Law are expected to be more limited with respect to further
write-offs.

Disposal of Non-Core Assets.As part of our strategy to streamline our operations, we are disposing of certain
investments in non-core businesses. In 2005, we realized aggregate proceeds

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amounting
to €31.6 million from disposals. In 2006, we realized aggregate proceeds of €369.8 million, mainly from the disposals of Atlantic Bank of New
York, NBG Canada and ASTIR Alexandroupolis. The proceeds received from the sale of each of ASTIR Alexandroupolis, NBG Canada and Atlantic Bank of New York in 2006 were
€6.5 million, CAD 71.3 million and US$400 million, respectively. In 2007, we disposed of our minority shareholding in AGET Heracles for
€320.7 million, our shares in Hellenic Exchanges S.A. for €80.1 million and our shares in Elsa S.A. for
€2.6 million. In addition, the Bank and our subsidiary, Ethniki Kefalaiou S.A., received proceeds of approximately €17.3 million in 2005,
€97.7 million in 2006 and €119.8 million in 2007 from disposals of certain real estate property holdings. We expect to continue divestitures of
non-core assets in the future.

Early retirement.In order to streamline their operations and further reduce costs, three Group companies implemented
voluntary retirement schemes during 2006: EH, NMOC and Astir Palace. The number of employees participating in the schemes was 72, 84 and 189, respectively, and additional operating expenses for these
schemes were €15.0 million, €15.6 million and €8.0 million, respectively. The above companies also implemented voluntary retirement
schemes during 2007, incurring additional operating expenses of €29.5 million, €5.0 million and €1.4 million, respectively. The
number of employees participating in the schemes was 154, 19 and 81 respectively. In addition Astir Palace repurchased part of the Deposit Administration Fund (employee pension scheme) for an
additional operating expense of €0.4 million.

Capital Base.We have taken measures to strengthen our capital base in connection with the modification of our asset mix to
comply with Greek capital adequacy requirements as set by the Basel Committee on Banking Supervision under the Capital Adequacy Directive relating to market risk and
to selectively expand our operations. In July 2003, we raised €350 million through the issuance by NBG Funding Ltd. of floating rate preferred notes, which are considered
Tier I capital. In November 2004, we raised €350 million and US$180 million through the issuance by NBG Funding Ltd of CMS Preferred Notes, which are
considered Tier I capital. In February 2005, we raised €230 million through the issuance by NBG Funding Ltd. of CMS Linked Preferred Notes, which are considered
Tier I capital, and in June 2005, we raised JPY 30 billion (€181.9 million) through the issuance by NBG Finance of subordinated notes, which are considered
Tier II capital. On November 8, 2006 we raised GBP 375 million (€511.4 million) through the issuance by NBG Funding Ltd. of Fixed/Floating Rate
Preferred Securities, which are eligible to be considered Tier I capital but which currently are partially accounted for as Tier I and partially accounted for as Tier II capital,
due to certain thresholds set by the Bank of Greece. In June 2007 (the first call date), NBG Finance plc redeemed €750 million Subordinated Callable Floating Rate Notes
issued in June 2002, which were accounted for as Tier II capital. In addition to the above, in July 2006 we raised €3,000.8 million through the issuance of 135,707,764
new common registered shares with payment in cash with pre-emptive rights in favor of existing shareholders, at a ratio of four new to ten old shares, chiefly for the purpose of the
acquisition of Finansbank. At December 31, 2007, the Bank and the Group had €6.1 billion and €4.9 billion, respectively, of Tier I capital,
and €7.3 billion and €5.4 billion of total capital, respectively.

Sources
of liquidity are regularly reviewed to maintain a wide diversification by currency, geography, provider and product. The ability to raise funds is in part dependent on
maintaining the Bank's credit ratings. Many factors contribute to the credit rating process, including the rating agency's assessment of the Bank's management capability, the quality of the Bank's
corporate governance and the Bank's risk management processes. The Bank considers capital base and regulatory ratios to be important factors in determining credit ratings. The table below sets forth
the credit ratings that have been assigned to the Bank by Moody's Investors Services Limited (referred to below as "Moody's"), Standard and Poor's Rating Services (referred to below as "Standard and
Poor's"), a division of the McGraw Hill Companies, Fitch Ratings Ltd. (referred to below as "Fitch") and Capital

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Intelligence Ltd.
(referred to below as "Capital Intelligence"). All credit ratings have been recently affirmed.

|Rating agency        |  | Long-term foreign currency deposit rating(1) |  | Short-term foreign currency deposit rating(1) |  | Outlook for the Bank's ratings(1) |  | Financial strength of the Bank Individual(1) |  | Subordinated debt of the Bank(1)
|-------------------- |  | -------------------------------------------- |  | --------------------------------------------- |  | --------------------------------- |  | --------------------------------------------- |  | --------------------------------
|Moody's              |  | Aa3                                          |  | Prime-1                                       |  | Stable                            |  | C+                                            |  | A1                              
|Standard and Poor's  |  | BBB+                                         |  | A-2                                           |  | Stable                            |  |                                              |  | BBB                             
|Fitch                |  | A-                                           |  | F2                                            |  | Stable                            |  | B/C                                           |  | BBB+                            
|Capital Intelligence |  | A                                            |  | A1                                            |  | Positive                          |  | A                                             |  |                                

---

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make a number of judgments, estimates and assumptions that
affect the reported amount of assets, liabilities, income and expense in our US GAAP Financial Statements and accompanying notes. We believe that the judgments, estimates and assumptions used in the
preparation of our US GAAP Financial Statements are appropriate given the factual circumstances as of December 31, 2007.

Various
elements of our accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, we
have identified five accounting policies which, due to the judgments, estimates and assumptions inherent in those policies, and the sensitivity of our U.S. GAAP financial statements to those
judgments, estimates and assumptions, are critical to an understanding of our financial statements.

Recognition and measurement of financial instruments at fair value

Assets and liabilities that are trading instruments are recorded at fair value on the balance sheet date, with changes in fair value reflected in net trading
profit/loss in the income statement. For exchange traded financial instruments, fair value is based on quoted market prices for the specific instrument. If quoted market prices are not available, fair
values are estimated based on dealer quotes, pricing models, discounted cash flow analysis or quoted prices for instruments with similar characteristics. As a general rule all interest rate products
are broken down into cash flows, which are then discounted using the appropriate market curve. For our derivative financial instruments which have optionality, the relevant option model is used. For a
further discussion on the effect of a change in interest rates and foreign exchange rates on our portfolio see Item 11, "Quantitative and Qualitative Disclosures about
Market Risk", in this document.

Further
details on this subject are given in Note 3, "Summary of Significant Accounting Policies", to our U.S. GAAP Financial Statements included in this Annual Report.

Recognition and measurement of intangibles recognized upon business combinations

We account for the acquired businesses using the purchase method of accounting which requires that the assets acquired and liabilities assumed be recorded at the
date of acquisition at their respective fair values.

The
application of the purchase method requires certain estimates and assumptions especially concerning the determination of the fair values of the acquired intangible assets and
property, plant and equipment as well as the liabilities assumed at the date of the acquisition. Moreover the useful lives of the acquired intangible assets, property, plant and equipment have to be
determined. The judgments made in the context of the purchase price allocation can materially impact our future results

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of
operations. Accordingly, for significant acquisitions, we obtain assistance from third party valuation specialists. The valuations are based on information available at the acquisition date.

Significant
judgments and assumptions made regarding the purchase price allocation in the course of the acquisition of Finansbank and Vojvodjanska, include the following:

For
the valuation of core deposits, the alternative source of funds method was applied. The value of Core Deposits Intangibles ("CDI") is measured by the present value of the difference,
or spread, between the CDI's ongoing cost and the cost of a market alternative replacement. Acquired core deposit accounts typically provide a low-cost source of funds to the buyer. To
replace these established, low-cost deposit accounts in a timely manner, any potential buyer's alternative would be to utilize higher-cost funds at current market rates. The
valuation results were also subject to sensitivity analysis.

For
the valuation of customer relationships, the multi-period excess of earnings method was applied. Excess earnings can be defined as the difference between the net operating profit
attributable to the existing customers at the acquisition date and the required cost of invested capital on all the other assets (contributory assets such as fixed assets, CDI, trade name, assembled
workforce and software) used in order to deliver a product or maintain the customer relationship. Value is estimated through the sum of the discounted future excess earnings attributable to these
customers over the remaining life span of the customer relationship. The valuation results were also subject to sensitivity analysis.

For
the valuation of brands, the relief-from-royalty method was applied which is based on hypothetical royalty income attributable to an asset. In particular, it
estimates the expected annual royalty cost savings that result from the company's ownership of trademarks and licenses on which it does not have to pay royalties to a licensor. The intangible asset is
then recognized at the present value of these savings. The valuation results were also subject to sensitivity analysis. The corporate brands used by Finansbank and Vojvodjanska are assumed to have an
unlimited life.

For
the valuation of software, the cost approach method was applied. The cost approach is based upon the economic principles of substitution and price equilibrium. The cost approach
suggests that a prudent investor would not pay, for an intangible, more that its costs to acquire a comparable intangible on the market. The reproduction cost methodology is based on the assumption
that the value of any intangible asset is the cost incurred to reconstruct or purchase an exact replica of the given intangible asset. The software intangible has been valued using the reproduction
cost methodology.

Goodwill

The Group tests goodwill for impairment at least annually using a two-step process that begins with an estimation of the fair value of a reporting unit. The first
step is a screen for potential impairment, and the second step measures the amount of impairment, if any. However, if certain criteria are met, the
requirement to test goodwill for impairment annually can be satisfied without a remeasurement of the fair value of a reporting unit.

Fair
value is determined by reference to market value, if available or by a qualified evaluator or pricing model. Determination of a fair value by a qualified evaluator or pricing model
requires management to make assumptions and use estimates. We believe that the assumptions and estimates used are reasonable and supportable in the existing market environment and commensurate with
the risk profile of the assets valued. However, different ones could be used which would lead to different results.

The
most significant amounts of goodwill relate to the acquisition of Finansbank in August 2006. The valuation model used to determine the fair value of Finansbank is sensitive to
changes in the assumptions. Adverse changes in any of these factors could lead us to record a goodwill impairment charge.

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In
2005, the Group recognized an impairment loss of €16.2 million relating to the absorption of National Investment Company by the Bank.

In
2006, the Group recognized an impairment loss of €52 million relating to our logistics business unit.

In
2007, the Group recognized an impairment loss of €11.2 million relating to private equity fund investments.

Further
details on this subject are given in Notes 3 and 16 to the U.S. GAAP Financial Statements included elsewhere in this Annual Report.

Allowance for Loan Losses

The amount of the allowance recognized for loan losses is based upon management's ongoing assessments of the probable estimated losses inherent in the loan
portfolio. Assessments are conducted by members of management responsible for each category of loans, employing a methodology and
guidelines which are continually monitored and improved. This methodology has five primary components: specific allowances, coefficient analysis, homogeneous analysis, allowances for foreign loans and
unallocated allowances. As the process for determining the adequacy of the allowance requires subjective and complex judgment by management about the effect of matters that are inherently uncertain,
subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses. The methodology for each component, the
estimates and judgments are described in further detail in Item 4.E, "Selected Statistical DataAllowance for Loan
LossesMethodology".

Insurance reserves

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions
about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts)
are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.

Assumptions
and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses
anticipated from the revision of assumptions and estimations is charged to income for the period.

Insurance
reserves increased from €1.7 billion in 2006 to €1.9 billion in 2007 due mainly to an increase in Gross Written Premiums. Further
details on this subject are provided in Note 3, "Summary of Significant Accounting Policies", to the U.S. GAAP Financial Statements included elsewhere in this report.

Net periodic benefit cost

The pension benefit obligation is actuarially determined using assumed discount rates, assumed rates of compensation increase and the expected return on plan
assets. These assumptions are ultimately determined by reviewing the Group's salary increases each year. The expected long-term return on plan assets represents management's expectation of
the average rate of earnings on the funds invested to provide for the benefits included in the projected benefit obligation. To determine the expected long-term rate of return assumption
the Group and its advisors make forward-looking assumptions in the context of historical returns and volatilities for each asset class as well as correlations among asset classes. The expected
long-term rate of return assumption is annually adjusted based on revised expectations of future investment performance of the overall capital markets, as well as changes to local
regulations affecting investment strategy. The weighted average expected long-term

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rate
of return assumption used in computing the 2007 pension benefit obligation was 7.5% compared to 6.4% for 2006. The rate of compensation increase remained the same in 2007 at 4.6%. The discount
rate increased from 4.7% in 2006 to 5.4% in 2007. The change in assumptions resulted in a net actuarial gain of €35.0 million. The impact to the pension benefit obligation, as
well as to service and benefit cost if certain assumptions are changed is further disclosed in Note 38, "Employee Benefit Plans", to the U.S. GAAP Financial Statements.

A.    Operating Results

Results of Operations for the year ended December 31, 2007 compared with the year ended December 31, 2006

Overview.The year ended December 31, 2007 continued to be affected significantly by our acquisition of Finansbank,
the fifth largest privately-owned bank in Turkey in terms of its consolidated assets and equity, with effect from August 18, 2006. Our results of operations for the year ended
December 31, 2006 reflect a consolidation of Finansbank for 135 days representing our 46% shareholding in it. We increased our participation in Finansbank to 84.89% in 2007 and our
results of operations for the year ended December 31, 2007 reflect a consolidation of Finansbank for the full year. For more information on the acquisition of Finansbank please refer to
Item 4.A, "History and Development of the Company". As a result, we experienced significant increases in net interest income,
non-interest income, non-interest expense and net income.

The
year ended December 31, 2007 was characterized by significant increases in net interest income before allowances for loan losses (42.2%), 29.2% of which was due to the effects
of the acquisition of Finansbank, non-interest income (22.2%), 3.5% of which was due to the effects of the acquisition of Finansbank, and non-interest expense (28.3%), 14.9% of
which was due to the effects of the acquisition of Finansbank.

Net Interest Income.Our net interest income from continuing operations before allowances for loan losses significantly
increased by 42.2% to €2,986.4 million for 2007, compared with €2,100.4 million for 2006, of which 29.2% or €613.3 million was due
to the effects of the acquisition of Finansbank. The remaining increase was due primarily to the increase in interest income attributable to significant growth in our loan portfolio and the increased
income on our securities portfolios. This amount was partially offset by an increase in interest expense triggered by the expansion of our deposit base, particularly time deposits. Our net interest
margin from our continuing operations in 2007 increased to

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3.9%,
from 3.2% in 2006. The components of our net interest income from continuing operations for 2006 and 2007 are reflected in the following table:

|                                                     |                                                 | Year ended December 31, |            |            |           
|---------------------------------------------------- | ----------------------------------------------- | ----------------------- | ---------- | ---------- | ----------
|
|
|
|Interest Income:                                     |                                                 |                         |            |            |           
|                                                     | Loans                                           |                         | 2,373,241  |            | 4,175,316 
|                                                     | Securities available for sale                   |                         | 185,003    |            | 372,358   
|                                                     | Trading assets                                  |                         | 480,902    |            | 517,348   
|                                                     | Securities purchased under agreements to resell |                         | 111,378    |            | 121,226   
|                                                     | Interest-bearing deposits with banks            |                         | 285,920    |            | 306,182   
|                                                     | Other                                           |                         | 66,330     |            | 113,810   
|                                                     |                                                 |                         |            |            |           
|Total interest income                                |                                                 | 3,502,774               |            | 5,606,240  |           
|                                                     |                                                 |                         |            |            |           
|Interest Expense:                                    |                                                 |                         |            |            |           
|                                                     | Deposits                                        |                         | (1,105,197 | )          | (2,032,004
|                                                     | Securities sold under agreements to repurchase  |                         | (126,903   | )          | (258,657  
|                                                     | Other borrowed funds                            |                         | (18,992    | )          | (55,736   
|                                                     | Long-term debt                                  |                         | (144,445   | )          | (270,267  
|                                                     | Other                                           |                         | (6,882     | )          | (3,220    
|                                                     |                                                 |                         |            |            |           
|Total interest expense                               |                                                 | (1,402,419              | )          | (2,619,884 | )         
|                                                     |                                                 |                         |            |            |           
|Net interest income before allowance for loan losses |                                                 | 2,100,355               |            | 2,986,356  |           
|Allowance for loan losses                            |                                                 | (261,603                | )          | (190,755   | )         
|                                                     |                                                 |                         |            |            |           
|Net interest income after allowance for loan losses  |                                                 | 1,838,752               |            | 2,795,601  |           
|                                                     |                                                 |                         |            |            |           

Total interest income from the Group's continuing operations increased by 60.1% to €5,606.2 million for 2007 from
€3,502.8 million for 2006, of which 34.7% or €1,217.1 million was due to the effects of the acquisition of Finansbank. The increase was principally
attributable to a 75.9% increase in interest income from loans in 2007 compared with 2006, of which 41.5% was due to the effects of the acquisition of Finansbank, reflecting a robust growth in the
Group's lending activities, mainly resulting from the expansion of our retail book. The increase in interest income was also due to a 101.3% increase in interest income from
available-for-sale securities, reflecting an increase in our portfolio by 49.2% and an increase in interest rates, and due to a 71.6% increase in other interest income
reflecting an increase in our deposits with Central Banks by 15.1% and an increase in interest rates. The expansion of our lending activities was financed by cash inflows from the growth of our
deposit base and the issuance of €1,500 million Floating Rate Notes in May 2007 and US$300 million Floating Rate Notes in October 2007 and obtaining US$425 million
under a syndicated loan in November 2007.

Total
interest expense from the Group's continuing operations increased by 86.8% to €2,619.9 million for 2007 from €1,402.4 million for 2006
(of which 43.1% or €603.8 million was due to the effects of the acquisition of Finansbank) due to increases in interest on deposits and long term debt. Interest on deposits
increased by 83.9% in 2007 as a result of the acquisition of Finansbank, the increase of our time deposits as well as increases in the deposit rates following changes of the ECB rate. Our interest
bearing deposits increased by 23.5% from €49,619.8 million in 2006 to €61,262.4 million in 2007. Interest expense on long-term debt also
increased by 87.1% (68.1% of which was due to the effects of the acquisition of Finansbank) due to increased interest rates, as well as due to the issuance of €1,500 million
Floating Rate Notes in May 2007.

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Allowance for Loan Losses.The Group's allowances for loan losses of €261.6 million for 2006,
decreased by 27.1% to €190.8 million for 2007 due to an increase in the quality of our loan portfolio as demonstrated by a decline in the number of non-performing
loans.

Activity
in the loan loss allowances for the two years ended December 31, 2006 and 2007 was as follows:

|                                 |                                                            | 2006       |          | 2007      |         
|-------------------------------- | ---------------------------------------------------------- | ---------- | -------- | --------- | --------
|
|Balance at beginning of the year |                                                            | 1,092,545  |          | 1,224,757 |         
|Subsidiaries acquired            |                                                            | 133,227    |          | 6,582     |         
|                                 | Add: Allowances for loan losses from continuing operations |            | 261,603  |           | 190,755 
|                                 |                                                            | Write-offs |          | (277,338  | )       
|                                 |                                                            | Recoveries |          | 20,064    |         
|                                 |                                                            |            |          |           |         
|                                 | Less: Net write-offs                                       |            | (257,274 | )         | (295,549
|                                 | Exchange differences and other variations                  |            | (5,344   | )         | 6,407   
|                                 |                                                            |            |          |           |         
|Balance at end of year           |                                                            | 1,224,757  |          | 1,132,952 |         
|                                 |                                                            |            |          |           |         

During the period under review, allowances for loan losses from our continuing operations decreased by 7.5% from
€1,224.8 million in 2006 to €1,133 million in 2007. At the same time, write-offs increased by 23.2% from
€277.3 million in 2006 to €341.6 million in 2007 reflecting the Group's policy to write off all non-collateralized loans that have been determined to be
unrecoverable. The Group's allowance for loan losses consists of five principal components. These are: specific allowances, coefficient analysis, homogeneous analysis, foreign loans and unallocated
allowances. See Item 4.E, "Selected Statistical
DataCredit QualityAllowance for Loan LossesMethodology".

|                                                      |  | Year ended December 31,
|----------------------------------------------------- |  | -----------------------
|
|
|Specific allowances                                   |  | 443,673                
|Coefficient analysis                                  |  | 67,938                 
|Homogeneous analysis                                  |  | 356,603                
|Foreign loans                                         |  | 318,439                
|Unallocated allowances                                |  | 38,104                 
|                                                      |  |                        
|Total loan loss allowances from continuing operations |  | 1,224,757              
|                                                      |  |                        

Specific allowances decreased from €443.7 million in 2006 to €392.7 million in 2007 due to increased
write-offs of corporate loans in 2007.

Allowances
under the homogeneous analysis decreased from €356.6 million in 2006 to €304.5 million in 2007, due to the increased
write-offs of unsecured loans as well as a refinement of our methodology for the mortgage portfolio, which takes into account the loss given default and probability of default consistent
with Basel II IRB methodology.

The
amount of unallocated allowance decreased from €38.1 million in 2006 to €7.2 million in 2007, since our methodology for calculating loan
loss allowances increasingly incorporates recent loan experience as well as geographical and industry segment concentrations.

Total
loan loss allowance as a percentage of non-performing loans decreased from 81.8% as at December 31, 2006 to 68.8% as at December 31, 2007, as a result of
increased write-offs.

Net
interest income after allowance for loan losses from our continuing operations increased by 52.0% to €2,795.6 million in 2007 from
€1,838.8 million in 2006.

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Non-interest Income.Non-interest income from our continuing operations increased by 22.2% to
€2,147.9 million for 2007, compared to €1,757.2 million for 2006, of which 3.5% or €60.7 million was due to the effects of the
acquisition of Finansbank. The following table summarizes the principal components of non-interest income during each of the two years ended December 31, 2006 and 2007:

|                                                                |  | Year ended December 31, |  |          
|--------------------------------------------------------------- |  | ----------------------- |  | ---------
|
|
|
|Credit card fees                                                |  | 126,981                 |  | 209,105  
|Service charges on deposit accounts                             |  | 40,941                  |  | 43,121   
|Other fees and commissions                                      |  | 457,269                 |  | 626,485  
|Net trading profits or (losses)                                 |  | 6,369                   |  | (97,693  
|Net realized gains on sales of available-for-sale securities    |  | 116,872                 |  | 129,816  
|Equity in earnings of investees and realized gains on disposals |  | 26,890                  |  | 159,536  
|Other                                                           |  | 981,961                 |  | 1,077,510
|                                                                |  |                         |  |          
|Total non-interest income                                       |  | 1,757,283               |  | 2,147,880
|                                                                |  |                         |  |          

Income from credit card fees increased by 64.7% from €127.0 million in 2006 to €209.1 million in
2007, of which 59.9% or €76.1 million was due to the effects of the acquisition of Finansbank.

Other
fees and commissions in 2007 increased by 37.0% to €626.5 million against €457.3 million in 2006, of which 22.8% or
€104.4 million was due to the effects of the acquisition of Finansbank. In 2007 we incurred net trading losses of €97.7 million, compared to net trading
profits of €6.4 million in 2006, mainly due to an accounting mismatch of €92.6 million between Finansbank's mortgage loans measured at amortized cost and
the related cross-currency swaps hedging such loans which were measured at fair value, as a result of the Group not electing to early adopt the fair value option of FAS 159 for these loans. In
2007, gains on sales of available-for-sale securities increased to €129.8 million from €116.9 million in 2006, including gains of
€59.1 million and €1.1 million arising from the sale of Hellenic Exchanges S.A. and Elsa S.A. respectively. Equity in earnings of investees
and realized gains on disposal increased from €26.9 million in 2006 to €159.5 million in 2007 due to the gains of €131.5 million
arising from the sale of AGET Heracles.

Non-interest Expense.Non-interest expense increased by 28.3% to
€3,313.2 million for 2007, compared with €2,581.5 million for 2006, of which 14.9% or €385.1 million was due to the effects of the
acquisition of Finansbank.

The
following table summarizes the principal components of non-interest expense during each of the two years ended December 31, 2006 and 2007.

|                                                                      |  | Year ended December 31, |  |           | 
|--------------------------------------------------------------------- |  | ----------------------- |  | --------- | 
|
|
|
|Salaries and employee benefits and voluntary early retirement schemes |  | 1,037,474               |  | 1,420,092 | 
|Occupancy and equipment expense                                       |  | 99,441                  |  | 123,092   | 
|Amortization and depreciation                                         |  | 98,680                  |  | 139,811   | 
|Impairment of goodwill                                                |  | 52,860                  |  | 11,224    | 
|Minority interests, net of tax                                        |  | 96,150                  |  | 65,007    | 
|Other non-interest expense and deposit insurance premium              |  | 1,196,854               |  | 1,553,973 | 
|                                                                      |  |                         |  |           | 
|Total non-interest expense                                            |  | 2,581,459               |  | 3,313,199 | 
|                                                                      |  |                         |  |           | 

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Salaries and employee benefits relating to our continuing operations increased by 36.9% from €1,037.5 million for 2006 to €1,420.1 million
for 2007, of which 16.3% or €169.1 million was due to the effects of the acquisition of Finansbank and 15% or €155.5 million from the Bank. Employee
benefit costs in 2006 and 2007 include actuarial estimates for pension and post-retirement defined benefit plans. In 2006 and 2007, these estimates resulted in a charge to the income
statement of €63.4 million and of €61.8 million, respectively. Amortization and depreciation increased by 41.7% because of the PPA amortization of
Finansbank and Vojvodjanska of €24.9 million. Occupancy and equipment expenses rose by 23.8% or €23.7 million due to the increase in the number of
branches of Turkish and foreign banking operations. Minority interests net of tax decreased by 32.4%, of which 23.0% was due to the decrease in the minority interest of Finansbank, due primarily to
our acquisition of an additional net stake of 38.89% in Finansbank during 2007. In 2006 the impairment of goodwill of National Real Estate by €52.0 million was attributed
entirely to our logistics business unit. In 2007, we recorded €11.2 million impairment of goodwill which was attributable to our UK private equity business.

Other
non-interest expense increased by 29.8% from €1,196.9 million in 2006 to €1,554.0 million in 2007, of which 14.9% or
€178.0 million was due to the effects of the acquisition of Finansbank and €108.9 million was due to increased insurance claims, provisions, and
reinsurance premia ceded.

Income from Continuing Operations Before Income Tax Expense.In 2007, the Group reported profit from continuing operations
before income tax expense of €1,630.3 million, a 60.7% increase from €1,014.6 million in 2006, of which 17.4% or €176.4 million was
due to the effects of the acquisition of Finansbank.

Income Tax Expense.In 2007, we recognized a current tax expense of €232.1 million of which
€76.4 million was due to the effects of the acquisition of Finansbank and a deferred tax expense of €79.4 million compared to a current tax expense of
€312.5 million and a deferred tax gain of €97.8 million in 2006. Our total tax expense in 2007 amounted to €311.5 million compared
to €214.7 million in 2006.

Following
legislation enacted in December 2005, the applicable Greek statutory rate of tax was reduced from 32% for 2005 to 29% for 2006, and 25% for 2007 and thereafter. Pursuant to an
incentive law, the statutory tax rate for the Bank for the years 2005 and 2006 was further reduced by four percentage points. The effective tax rate for the Group in 2007 was approximately 18.4%.

Net Income.For the reasons discussed above, we had net income of €1,318.8 million for 2007, of which
23.0% or €303.9 million was due to the effects of the acquisition of Finansbank, compared with €858.1 million for 2006.

Exchange Rate Exposure.The Group is an active participant in the foreign exchange markets and also makes loans denominated
in foreign currencies. The Group's goal in managing exchange rate exposure is to minimize the effect of exchange rate movements on profitability. The Group adheres to central bank guidelines and other
guidelines applicable to the Group and actively manages its foreign currency position. To the extent that foreign currency-denominated assets are not matched with liabilities denominated in the same
currencies, the Group engages in swaps and other hedging transactions in order to reduce the effects of these imbalances. Management, therefore, does not consider the Group's foreign exchange risk to
be significant with respect to the Group's overall financial position. As at December 31, 2007, approximately 27.0% of the Group's liabilities and 24.2% of the Group's assets were denominated
in currencies other than euro, before taking into account hedging transactions. For more information on foreign exchange risk see Item 11, "Quantitative and Qualitative
Disclosures About Market Risk".

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Results of Operations for the year ended December 31, 2006 compared with the year ended December 31, 2005

Overview.The year ended December 31, 2006 was affected significantly by our acquisition of Finansbank, the fifth
largest privately-owned bank in Turkey in terms of its consolidated assets and equity, with effect from August 18, 2006. As a result, we experienced significant increases in net interest
income, non-interest income, non-interest expense and net income. Furthermore, in 2006 the Bank disposed of its North American operations, which led to the classification of
income from those operations as income from discontinued operations for both 2005 and 2006.

The
year ended December 31, 2006 was characterized by significant increases in net interest income before allowances for loan losses (35.2%), 16.7% of which was due to the effects
of the acquisition of Finansbank, non-interest income (19.8%), 8.2% of which was due to the effects of the
acquisition of Finansbank and non-interest expense (26.8%), 12.5% of which was due to the effects of the acquisition of Finansbank, and significantly lower tax costs resulting from a lower
statutory tax rate in Greece (24% in 2006 versus 27% in 2005). In addition, we benefited from a law permitting banks to distribute reserves taxed at a rate significantly lower than the current income
tax rate and the deferred tax on accumulated tax losses of our subsidiary companies, EH and Astir Palace, which according to recent business plans will offset future tax profits within the period
permitted by Greek legislation.

Net Interest Income.Our net interest income from continuing operations before allowances for loan losses increased by 35.2%
to €2,100.4 million for 2006, compared with €1,553.3 million for 2005, of which 16.7% or €260.4 million was related to the effects
of the acquisition of Finansbank. The remaining increase of 18.5% to €1,840.0 million for 2006 was due primarily to the increase in interest income attributable to significant
growth in our loan portfolio and the increased income on our securities portfolios and deposits. This amount was partially offset by an increase in interest expense triggered by the expansion of our
deposit base. Our net interest margin from our continuing operations in 2006 increased to 3.2% (or 2.97% excluding the effects of the acquisition of Finansbank) from 2.7%

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in
2005. The components of our net interest income from continuing operations for 2005 and 2006 are reflected in the following table:

|                                                     |                                                 | Year ended December 31, |           |            |           
|---------------------------------------------------- | ----------------------------------------------- | ----------------------- | --------- | ---------- | ----------
|
|
|
|Interest Income:                                     |                                                 |                         |           |            |           
|                                                     | Loans                                           |                         | 1,591,972 |            | 2,373,241 
|                                                     | Securities available for sale                   |                         | 92,843    |            | 185,003   
|                                                     | Securities held to maturity                     |                         | 1,953     |            |          
|                                                     | Trading assets                                  |                         | 374,868   |            | 480,902   
|                                                     | Securities purchased under agreements to resell |                         | 108,673   |            | 111,378   
|                                                     | Interest-bearing deposits with banks            |                         | 199,607   |            | 285,920   
|                                                     | Other                                           |                         | 20,472    |            | 66,330    
|                                                     |                                                 |                         |           |            |           
|Total interest income                                |                                                 | 2,390,388               |           | 3,502,774  |           
|                                                     |                                                 |                         |           |            |           
|Interest Expense:                                    |                                                 |                         |           |            |           
|                                                     | Deposits                                        |                         | (598,705  | )          | (1,105,197
|                                                     | Securities sold under agreements to repurchase  |                         | (141,889  | )          | (126,903  
|                                                     | Other borrowed funds                            |                         | (4,595    | )          | (18,992   
|                                                     | Long-term debt                                  |                         | (87,240   | )          | (144,445  
|                                                     | Other                                           |                         | (4,692    | )          | (6,882    
|                                                     |                                                 |                         |           |            |           
|Total interest expense                               |                                                 | (837,121                | )         | (1,402,419 | )         
|                                                     |                                                 |                         |           |            |           
|Net interest income before allowance for loan losses |                                                 | 1,553,267               |           | 2,100,355  |           
|Allowance for loan losses                            |                                                 | (225,013                | )         | (261,603   | )         
|                                                     |                                                 |                         |           |            |           
|Net interest income after allowance for loan losses  |                                                 | 1,328,254               |           | 1,838,752  |           
|                                                     |                                                 |                         |           |            |           

Total interest income for the Group's continuing operations increased by 46.5% to €3,502.8 million for 2006 from
€2,390.4 million for 2005, of which €530.9 million or 22.2% was due to the effects of the acquisition of Finansbank. The increase was principally
attributable to a 49.1% increase in interest income from loans in 2006 compared with 2005, of which 25.1% was due to the effects of the acquisition of Finansbank, reflecting a robust growth in the
Group's lending activities, mainly resulting from the expansion of our retail book. The expansion of our lending activities was financed by cash inflows from the growth of our deposit base and the
issuance of GBP 375 million of Preferred Notes. The increase in interest income from trading assets, securities available for sale and interest bearing deposits with banks, in addition to the
effect of the acquisition of Finansbank, was due to increases in the interest rates during the year coupled with increases in the relative volumes.

Total
interest expense for the Group's continuing operations increased by 67.5% to €1,402.4 million for 2006 from €837.1 million for 2005
(of which €270.5 million or 32.3% was due to the effects of the acquisition of Finansbank) due to increases in interest on deposits and long term debt, which was also connected
with our acquisition of Finansbank. Interest on deposits increased by 84.6% in 2006 (of which 31.9% was due to the effects of the acquisition of Finansbank), reflecting the expansion of our deposit
base in 2006, as well as increases in the deposit rates following consecutive changes of the ECB rate. Our interest bearing deposits increased by 22.9% from €40,378.7 million in
2005 to €49,618.8 million in 2006, of which 12.5% or €5,052.4 million was due to the effects of the acquisition of Finansbank. Interest expense on
long-term debt also increased by 65.6%, (44.4% of which was due to the effects of the acquisition of Finansbank), due to increased interest rates and the raising of GBP 375 million
of Preferred Securities in November 2006.

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Allowance for Loan Losses.The Group's continuing operations recorded allowances for loan losses of
€225.0 million for 2005, which increased by 16.3% to €261.6 million for 2006.

Activity
in the loan loss allowances for the two years ended December 31, 2005 and 2006 was as follows:

|                                                      |                                                            | 2005          |          | 2006      |         
|----------------------------------------------------- | ---------------------------------------------------------- | ------------- | -------- | --------- | --------
|
|Balance at beginning of the year                      |                                                            | 1,115,212     |          | 1,092,545 |         
|Less: Amounts attributable to discontinued operations |                                                            | (15,654       | )        |          |         
|Subsidiaries acquired                                 |                                                            |              |          | 133,227   |         
|                                                      | Add: Allowances for loan losses from continuing operations |               | 225,013  |           | 261,603 
|                                                      |                                                            | Write-offs    |          | (245,881  | )       
|                                                      |                                                            | Recoveries(1) |          | 7,058     |         
|                                                      |                                                            |               |          |           |         
|                                                      | Less: Net write-offs                                       |               | (238,823 | )         | (257,274
|                                                      | Exchange differences and other variations                  |               | 6,797    |           | (5,344  
|                                                      |                                                            |               |          |           |         
|Balance at end of year                                |                                                            | 1,092,545     |          | 1,224,757 |         
|                                                      |                                                            |               |          |           |         

---

During the period under review, allowance for loan losses from our continuing operations increased by 12.1% from
€1,092.5 million in 2005 to €1,224.8 million in 2006. Total loans attributable to our continuing operations increased by 42.7% from
€30,674.2 million as at December 31, 2005 to €43,756.8 million as at December 31, 2006, of which 22.1% or
€6,786.8 million was due to the effects of the acquisition of Finansbank. At the same time, write-offs increased by 12.8% from €245.9 million
in 2005 to €277.3 million in 2006 reflecting the Group's policy to write off all loans that have been determined to be unrecoverable. The level of allowances and net
write-offs made during the year was roughly the same (€261.6 million and €257.3 million respectively). The Group's allowance for loan losses
consists of five principal components. These are: specific allowances, coefficient analysis, homogeneous analysis, foreign loans and unallocated losses. See Item 4.E,
"Selected Statistical DataCredit QualityAllowance for Loan LossesMethodology".

|                                                      |  | At December 31,
|----------------------------------------------------- |  | ---------------
|
|
|Specific allowances                                   |  | 476,127        
|Coefficient analysis                                  |  | 50,808         
|Homogeneous analysis                                  |  | 280,800        
|Foreign loans                                         |  | 231,210        
|Unallocated                                           |  | 53,600         
|                                                      |  |                
|Total loan loss allowances from continuing operations |  | 1,092,545      
|                                                      |  |                

Specific allowances decreased from €476.1 million in 2005 to €443.7 million in 2006 due to
write-offs of loans to certain large corporate customers.

Allowances
under the homogeneous analysis increased from €280.8 million in 2005 to €356.6 million in 2006, due to change in the probable
losses of our mortgage portfolio resulting from the ageing of non-performing loans, minimal collections during the year and the addition of new past due loans.

121

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Allowances
for foreign loans increased from allowances €231.2 million in 2005 to €318.4 million in 2006, of which
€125.9 million represents the minority's share of Finansbank allowances. The decrease to €192.5 million not taking into account the acquisition of
Finansbank is attributable to increased write-offs by our foreign entities.

Total
loan loss allowance as a percentage of non-performing loans increased from 75.5% as at December 31, 2005 to 81.8% as at December 31, 2006, as a result of
our acquisition of Finansbank and increased allowance for loan losses.

Net
interest income after allowance for loan losses from our continuing operations increased by 38.4% to €1,838.8 million in 2006 from
€1,328.3 million in 2005.

Non-interest Income.Non-interest income from our continuing operations increased by 19.8% to
€1,757.2 million for 2006, compared to €1,466.8 million for 2005, of which 8.2% or €120.5 million was due to the effects of the
acquisition of Finansbank. The following table summarizes the principal components of non-interest income during each of the two years ended December 31, 2005 and 2006:

|                                                                      |  | Year ended December 31, |  |           | 
|--------------------------------------------------------------------- |  | ----------------------- |  | --------- | 
|
|
|
|Credit card fees                                                      |  | 79,675                  |  | 126,981   | 
|Service charges on deposit accounts                                   |  | 38,218                  |  | 40,941    | 
|Other fees and commissions                                            |  | 369,730                 |  | 457,269   | 
|Net trading profits                                                   |  | 5,933                   |  | 6,369     | 
|Net realized (losses)/gains on sales of available-for-sale securities |  | 119,523                 |  | 116,872   | 
|Equity in earnings or (losses) of investees                           |  | 36,823                  |  | 26,890    | 
|Other                                                                 |  | 816,871                 |  | 981,961   | 
|                                                                      |  |                         |  |           | 
|Total non-interest income                                             |  | 1,466,773               |  | 1,757,283 | 
|                                                                      |  |                         |  |           | 

Income from credit card fees increased by 59.4% from €79.7 million in 2005 to €127.0 million in
2006, of which 58.1% or €46.3 million was due to the effects of the acquisition of Finansbank. Service charges on deposit accounts increased from
€38.2 million in 2005 to €40.9 million in 2006, of which €6.6 million was due to the effects of the acquisition of Finansbank.
Other fees and commissions in 2006 increased by 23.7% to €457.3 million against €369.7 million in 2005, of which €45.7 million or
12.4% was due to the effects of the acquisition of Finansbank. In 2006, sales of available-for-sale securities proved once again to be a profitable component of the Group's
continuing operations performance and amounted to €116.9 million in 2006 against €119.5 million in 2005, and included profits of
€2.4 million of Finansbank. Other non-interest income from our continuing operations was €982.0 million in 2006, significantly increased by
20.2% from €816.9 million in 2005 (of which €6.1 million or 0.7% was due to the effects of the acquisition of Finansbank), due primarily to an increase in
income from insurance operations by €117.0 million coupled by a 57% increase in profits on sale of properties.

Non-interest Expense.Non-interest expense increased by 26.8% to
€2,581.5 million for 2006, compared with €2,035.3 million for 2005, of which €255.7 million or 12.5% was due to the effects of the
acquisition of Finansbank.

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The
following table summarizes the principal components of non-interest expense during each of the two years ended December 31, 2005 and 2006.

|                                |  | Year ended December 31, |  |          
|------------------------------- |  | ----------------------- |  | ---------
|
|
|
|Salaries and employee benefits  |  | 893,368                 |  | 1,037,474
|Occupancy and equipment expense |  | 68,811                  |  | 99,441   
|Amortization and depreciation   |  | 84,107                  |  | 98,680   
|Impairment of goodwill          |  | 16,162                  |  | 52,860   
|Minority interests, net of tax  |  | 40,625                  |  | 96,150   
|Other non-interest expense      |  | 932,257                 |  | 1,196,854
|                                |  |                         |  |          
|Total non-interest expense      |  | 2,035,330               |  | 2,581,459
|                                |  |                         |  |          

Salaries and employee benefits relating to our continuing operations increased by 16.1% from €893.4 million for 2005 to
€1,037.5 million for 2006, of which 7.4% or €65.7 million was due to the effects of the acquisition of Finansbank. Employee benefit costs in 2005 and 2006
include actuarial adjustments for pension and post-retirement defined benefit plans. In 2005 and 2006, these adjustments resulted in a charge to the income statement of
€34.6 million and €63.4 million, respectively. The increase is attributable to the voluntary retirement schemes of EH, NMOC and Astir
Palace, the additional cost of which reached €38.6 million in 2006. Minority interests net of tax increased significantly due to the minority of Finansbank, which amounted to
€78.0 million. In 2006, the absorption of National Investment Company in December 2006, resulted in an impairment of goodwill of €16.2million, while in 2006 the
impairment of goodwill of National Real Estate by €52.0 million was attributed entirely to our logistics business unit.

Other
non-interest expense increased by 28.4% from €932.3 million in 2005 to €1,196.9 million in 2006, of which 7.8% or
€72.5 million was due to the effects of the acquisition of Finansbank and a €116.7 million increase in insurance claims and reserves.

Income Before Income Tax Expense.In 2006, the Group reported profit from continuing operations before income tax expense of
€1,014.6 million, a 33.6% increase from €759.7 million in 2005, of which 14.7% or €111.7 million was due to the effects of the
acquisition of Finansbank.

Income Tax Expense.In 2006, we recognized a current tax liability of €312.5 million and a deferred
tax gain of €97.8 million, of which €19.8 million current tax liability and €14.4 million deferred tax liability, respectively, was
due to the effects of the acquisition of Finansbank, compared to a current tax liability of €168.2 million and a deferred tax liability of €64.6 million
in 2005. Our total tax expense in 2006 amounted to €214.7 million compared to €232.8 million in 2005. The decrease in our total tax expense in 2006 was
primarily due to the decrease in Greek statutory tax rates discussed below as well as EH's and Astir Palace's deferred tax asset on tax losses for the year.

Following
legislation enacted in December 2005, the applicable Greek statutory rate of tax was reduced from 32% for 2005 to 29% for 2006, and 25% for 2007 and thereafter. Pursuant to an
incentive law, the statutory tax rate for the Bank for the years 2005 and 2006 was further reduced by four percentage points. The effective tax rate for the Group in 2006 was approximately 21.16%.

Net Income.For the reasons discussed above, and given that our net income from discontinued operations increased by 105.7%
from €28.3 million in 2005 to €58.2 million in 2006, we had net income of €858.1 million for 2006, of which
€77.3 million was due to the effects of the acquisition of Finansbank, compared with €555.2 million for 2005.

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Exchange Rate Exposure.The Group is an active participant in the foreign exchange markets and also makes loans denominated
in foreign currencies. The Group's goal in managing exchange rate exposure is to minimize the effect of exchange rate movements on profitability. The Group adheres to central bank guidelines and other
guidelines applicable to the Group and actively manages its foreign currency position. To the extent that foreign currency-denominated assets are not matched with liabilities denominated in the same
currencies, the Group engages in swaps and other hedging transactions in order to reduce the effects of these imbalances. Management, therefore, does not consider the Group's foreign exchange risk to
be significant with respect to the Group's overall financial position. As at December 31, 2006, approximately 26.8% of the Group's liabilities and 23.4% of the Group's assets were denominated
in currencies other than euro, before taking into account hedging transactions. For more information on foreign exchange risk see Item 11, "Quantitative and Qualitative
Disclosures About Market Risk".

Recently Issued Accounting Pronouncements

For a discussion of recently issued accounting pronouncements please refer to Note 3, "Summary of Significant Accounting
Policies" to the U.S. GAAP Financial Statements included elsewhere in this report.

B.    Liquidity and Capital Resources

Our principal sources of liquidity are our deposit base and, to a lesser extent, interbank borrowings and long-term debt. We also derive liquidity
from the results of our operations and disposals of securities and other assets.

In
recent years, we have generally been in a position of excess liquidity due to our large domestic deposit base. Deposits have funded the securities portfolio, loans to customers and
reserve balances held at the central bank.

We
participate in the interbank deposit market (denominated in euro and all major currencies) and enter into foreign exchange forward transactions with maturities up to a year. The net
open positions carried are small and largely offset against the deposit base in the respective currency.

The
following table provides a summary of our interbank borrowing activity for each of the three years ended December 31, 2005, 2006 and 2007.

|                        |  | Year ended December 31, |  
|----------------------- |  | ----------------------- | -
|
|
|Interbank lending       |  | 1,322,015               |  
|Interbank borrowing     |  | (2,300,087              | )
|                        |  |                         |  
|Net interbank borrowing |  | (978,072                | )
|                        |  |                         |  

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Operating cash flow also provides us with an important source of liquidity. The following table provides a summary of our cash flows for each of
the three years ended December 31, 2005, 2006 and 2007.

|                                                                  |  | Year ended December 31, |  
|----------------------------------------------------------------- |  | ----------------------- | -
|
|
|Cash flows from operating activities from continuing operations   |  | (1,788,310              | )
|Cash flows from operating activities from discontinued operations |  | 48,878                  |  
|Cash flows from investing activities from continuing operations   |  | (1,288,149              | )
|Cash flows from investing activities from discontinued operations |  | (72,821                 | )
|Cash flows from financing activities from continuing operations   |  | 3,951,018               |  
|Cash flows from financing activities from discontinued operations |  | (4,608                  | )
|Effect of exchange rate change on cash and cash equivalents       |  | 13,470                  |  
|                                                                  |  |                         |  
|Net increase in cash and due from banks                           |  | 859,478                 |  
|                                                                  |  |                         |  

During 2005, our loan portfolio attributable to our continuing operations increased by €3,498.8 million. This lending
activity was funded by excess liquidity from deposits which increased by €5,008.4 million.

During
2006, our loan portfolio attributable to continuing operations increased by €13,082.6 million, of which €6,786.8 million was due to
the effects of the acquisition of Finansbank, and our acquisitions of Finansbank and Vojvodjanska resulted in an increase in goodwill of €2,044.8 million. This lending activity
was funded by excess liquidity from deposits, which increased by €10,634.0 million and an increase in long-term debt of €2,293.6 million, of
which €5,943.9 million and €1,601.1 million, respectively, was due to the effects of the acquisition of Finansbank, whereas our acquisitions were funded
by our share capital increase of €3,000.8 million in July 2006.

During
2007, our loan portfolio attributable to our continuing operations increased by €11,803.7 million, of which €9,926.8 million was due
to the effects of the acquisition of Finansbank. This lending activity was funded by excess liquidity from deposits, which increased by €10,986.8 million and an increase in
long-term debt of €979.8 million, of which €8,435.1 million and €1,616.0 million, respectively, was due to the effects
of the acquisition of Finansbank.

Our
capital expenditure requirements, excluding interests in other companies, have been principally for upgrading our information technology and other electronic systems and for general
plant and equipment. Capital expenditure for the Bank, excluding such interests in other companies, amounted to €117.0 million in 2007. See Item 4.A,
"History and Development of the Company". We fund our capital expenditure requirements principally through operating cash flow.

Our
capital expenditures also include interests acquired in other companies, amounting to an additional €2,446.9 million for the year ended December 31,
2007. This amount principally represents the acquiring of a further 43.44% stake in Finansbank in January 2007, and the acquisition of P&K Investment Services S.A.

The
Group's Treasury is active across a broad spectrum of capital market products and operations, including bonds and securities, interbank placements in the international money and
forex markets and market-traded and OTC financial derivatives. For more information on the activities of our Treasury Division, see Item 4.B, "Business
OverviewBanking Activities in GreeceTreasury Activities".

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At
December 31, 2007, total assets were €90,960.6 million, a 20.1% increase from the Group's total assets of €75,713.7 million, at
December 31, 2006, which in turn was a 26.1% increase from the Group's total assets of €60,007.5 million at December 31, 2005. Deposits with the central bank were
€2,372.1 million in 2007, €2,110.2 million in 2006 and €1,184.4 million in 2005. Federal funds sold and securities purchased under
agreements to resell from our continuing operations were €1,415.7 million in 2007, €2,398.0 million in 2006 and €2,495.7 million in
2005. Interest-bearing deposits with other banks from our continuing operations were €1,777.4 million in 2007, €2,272.0 million in 2006 and
€1,322.0 million in 2005. The Group's continuing operations securities portfolio was €11,228.9 million at December 31, 2007,
€11,529.3 million at December 31,2006 and €11,186.5 million at December 31, 2005.

The
Group's continuing operations loan portfolio grew from €30,674.2 million at December 31, 2005 to €43,756.8 million at
December 31, 2006 and to €55,560.5 million at December 31, 2007. At December 31, 2007, the Group's loan portfolio accounted for 61.1% of total assets.
Allowance for loan losses from continuing operations increased from €1,092.5 million in 2005 and to €1,224.8 million in 2006 and then decreased to
€1,133.0 million in 2007. See Item 4.E, "Selected Statistical DataAssetsLoan Portfolio".

Deposits
attributable to our continuing operations increased from €45,251.1 million at December 31, 2005 to €55,886.1 million at
December 31, 2006 and to €66,872.9 million at December 31, 2007. Of these, interbank deposits increased from €2,400.0 million at
year-end 2005 to €3,037.0 million in 2006 and then to €6,759.3 million in 2007.

Although,
subject to certain exceptions, Greek law does not allow an entity to acquire and own its own shares, subsidiaries in Greece were allowed to own and trade in the market shares
of their parent company until March 16, 2001, and may continue to own shares acquired prior to such date. Treasury stock in our financial statements represents shares of the Bank owned by the
Bank or our subsidiaries. Treasury stock decreased to €21.6 million at December 31, 2007 from €26.8 million at December 31, 2006.

Greek
law substantively prohibits subsidiaries from transferring funds to their parent company through loans by deeming such transfers null and void. Subsidiaries are also constrained in
their ability to transfer funds to a parent company in the form of dividends by applicable corporate laws. For example, under Greek law, no distribution of dividends can be effected if, on the closing
date of the relevant financial year, the total shareholders' equity is, or would be as a result of such a distribution, lower than the sum of the company's share capital and
non-distributable reserve amounts. See Item 8.A(8), "Financial InformationConsolidated Statements and Other Financial
Information". We do not believe that any of these legal provisions have had, or will have, a material impact on the Bank's ability to meet its cash obligations. We believe that
our working capital is sufficient for our present requirements. For further discussion of Liquidity and Capital Resources, including the maturity profile, currency and interest rate structure of debt
seeNotes 23 and 26 to the U.S. GAAP financial statementsincluded in this annual report.

Asset/Liability, Internal Audit and Risk Management

We consider effective risk management to be a key factor in our ability to deliver sustained returns to our shareholders. We allocate substantial resources to
upgrading our policies, methods and infrastructure to ensure compliance with best international practices and the guidelines of the Basel Committee for Banking Supervision. For a discussion of
management's specific risks, see Item 11, "Quantitative and Qualitative Disclosures About Market Risk".

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Risk Management Policies

Group risk management policies are approved by the Bank's Risk Management Committee (the "RMC"), the members of which are the Chief Executive Officer, the Deputy
Chief Executive Officer and one non-executive member of the Board of Directors. The RMC is responsible for all strategic risk management decisions including the approval and review of risk
strategy, policies and capital adequacy and allocation as well as overseeing the GRMD. For more information on the Board Risk Committee, see Item 6.C, "Board
Committees".

The
GRMD is responsible for protecting the Group against unforeseen losses and maintaining earnings stability through independent identification and assessment of risks, developing the
Group organizational structure under best banking practices for risk management, developing transparent, objective and consistent risk management information as the basis for sound decision making and
maximizing the Bank's earnings potential by measuring performance on a risk-adjusted basis and allocating capital accordingly. In addition, the GRMD is responsible for providing the RMC
and the Executive Committee with accurate data and analysis required for measuring, monitoring and managing risks and for supporting the implementation of risk management decisions. For more
information on the NBG Group Executive Board, see Item 6.A, "Board of Directors and Senior Management".

Asset and Liability Committee ("ALCO")

Our asset/liability and risk management policy is designed to structure our balance sheet in order to control exposure to liquidity, interest rate and exchange
rate risks, as well as to enable us to take advantage of market opportunities which we believe may contribute to our profitability.

Currently,
the asset/liability management policies of the Bank and the other subsidiaries in the Group are planned and implemented separately, although the Bank's ALCO is seeting the
guidelines for Asset and Liability Management ("ALM") in general. ALCO is responsible for determining the broad asset/liability management of the Bank and for supervising its implementation. This
committee meets monthly and is comprised of the Chief Executive Officer and Deputy Chief Executive Officer of the Bank and the General Managers and managers of the Bank involved in the asset
allocation functions. Day-to-day asset/liability management is delegated to the Bank's Treasury Department, which is divided into several operating units. The subsidiaries in
the Group follow asset and liability management policies similar to those of the Bank.

The
members of ALCO are:



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Internal Audit

Internal audit, at the NBG Group, is an independent, objective assurance and consulting activity designed to add value and improve operations. It contributes in
the achievement of the corporate objectives by (a) bringing a systematic, disciplined approach in evaluating the effectiveness of risk management, internal controls and corporate governance,
(b) recommending appropriate measures to improve their efficiency and effectiveness and (c) monitoring the implementation of corrective actions.

The
Internal AuditInspection Division of the Bank & the Group ("IAID") is authorized to conduct planned and special audits and/or to coordinate the internal audit
activities across the Group. IAID is administratively independent from the remaining Bank & Group Units. The Chief Audit Executive holds the title of General Manager of the Bank and is assigned
or discharged only by the NBG Board of Directors, after recommendation by the Audit Committee and the Bank's CEO; any such change must be communicated to the Regulatory Authorities (Bank of Greece).
The Chief Audit Executive reports, on the IAID's activities, directly to the Audit Committee, on a monthly basis and to the Board of Directors of the Bank, through the Audit Committee on a quarterly
basis.

Given
the rapid expansion of the NBG Group in South Eastern Europe and the recent guidelines regarding the operation of the Internal Audit Units, issued by the Regulatory Authorities,
the Board of Directors of the Bank has approved a new Internal Audit Charter and organization structure for the IAID enabling it to effectively operate at Group level. On the basis of its new Charter
IAID is the central coordinating Unit for all the Internal Audit Units ("IAUs") of the Group and is charged with the development and implementation of internal auditing standards in accordance with
the Regulatory Guidelines and the International Standards for the Professional Practice of the Internal Auditing of the Institute of Internal Auditors ("IIA").

In
order to fulfill its new role IAID has developed a three year business plan that is aligned with the NBG Group's strategic goals for 2007-2009. Two important objectives of
the plan that are already in their implementation stage were the audit staff restructuring and the establishment of a common Group-wide internal audit methodology.

In
2006 IAID started an aggressive recruitment program aiming to attract qualified senior auditors and audit managers from the market, the majority of whom held postgraduate degrees
and/or certifications (e.g. CIA, CISA, ACCA); in parallel, high potential individuals were recruited internally from various units of the Bank. The recruitment program continued in 2007 and
expanded to other Internal Audit Units of the Subsidiaries.

As
of December 31, 2007 the IAID's headcount, excluding the Chief Audit Executive, was 122 auditors, out of whom 19 were Managers, 37 Senior Auditors and 66 Auditors and Junior
Auditors. The total auditor headcount at Group level was 277, out of whom 35 were managers, 53 senior auditors and 189 auditors and junior auditors. Upon completion of the restructuring the auditors
holding degrees or postgraduate titles represented 90% at the Group level.

IAID
has developed an internal audit methodology consisting of policies and procedures, in line with the COSOERM principles and the IIA Standards. The new internal audit
methodology is currently being implemented at each IAU across the Group according to the internal audit integration plan. According to the methodology the high risk areas will be audited on a yearly
basis while the medium and low risk at least every three years. The IAID has also aligned its planning process to satisfy Basel II and MiFID requirements.

The
IAID in cooperation with the remaining NBG Group IAUs developed a comprehensive Group-wide annual audit plan for 2008 based on the new methodology that was developed. The
Group-wide annual audit plan incorporates the individual audit plans from each subsidiary in an effort to optimize the audit coverage and to utilize more efficiently available resources.
The Group-wide integrated audit plan was submitted for approval to the Bank's Audit Committee and will be

128

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materialized,
by deploying resources from the IAID, the local IAUs, or jointly from both, depending on the criticality of the auditable unit and the specialized know-how that is required.

Liquidity Exposure

Liquidity risk is defined as the current or prospective risk to earnings and capital arising from the institution's inability to meet its liabilities when they
come due without incurring unacceptable losses.

It
reflects the potential mismatch of payment obligations to incoming payments, taking into account unexpected delays in repayments (term liquidity risk) or unexpectedly high payment
outflows (withdrawal/call risk). Liquidity risk involves both the risk of unexpected increases in the cost of funding the portfolio of assets at appropriate maturities and rates, and the risk of being
unable to liquidate a position in a timely manner on reasonable terms.

Liquidity
risk management seeks to ensure that the liquidity risk of the bank is measured properly, it is maintained within acceptable levels and that even under adverse conditions, the
bank has access to the funds necessary to cover customer needs, maturing liabilities and capital requirements.

The
RMC monitors the gap in maturities between assets and liabilities as well as the funding requirements based on various assumptions, including conditions that might have an adverse
impact on the bank's ability to liquidate investments and trading positions and the ability to access capital markets.

The
Group's principal source of liquidity is its deposit base and, to a lesser extent, interbank borrowings and long-term debt. The Group operated a network of
575 branches in Greece at December 31, 2007. In addition, at the same date, our international network comprised 1,061 banking units outside Greece (branches and representative
offices), including 411 branches of our Turkish operations. Our deposits reached €66,872.9 million as at December 31, 2007, up 19.7% from
€55,886.1 million at December 31, 2006. This provides the Group with sufficient euro and foreign currency liquidity to fund its operations and treasury positions. The
Group derives liquidity also from the interbank market, from long term debt and other borrowed funds, from its ongoing business operations and from disposals of securities and other assets. For more
information on other borrowed funds and long term debt of the Group see Notes 23 and 26 to the U.S. GAAP Financial Statements included in this Annual Report.

As
at December 31, 2007, approximately 8.4% of the Group's deposits were demand deposits with no specified maturity. Approximately 92% of the Group's deposits had maturities of
less than three months, 35.6% of the Group's loans with customers had a maturity of less than one year. Loans to customers with maturities in excess of five years represented 34.9% of the Group's
total loan portfolio. Over 90% of the Group's interest bearing deposits with banks had maturities of less than three months.

Interest Rate Exposure

Exposure to interest rate risk in the banking book arises from repricing mismatches between assets and liabilities. The Group closely monitors its overall
exposure to interest rate risk in the banking book and the impact that individual transactions may have on such exposure. The Group is managing its exposure to interest rate risk in the banking book
aiming to limit the potentially adverse consequences of interest rate movements on profitability and capital, while seeking to take advantage of opportunities presented by prevailing or expected
trends in market interest rates.

At
December 31, 2007, 60.5% of Group loans with maturity over one year carried floating rates of interest.

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Assets and Liabilities by Currency Denominations

The following table sets forth the assets and liabilities and shareholders' equity by those denominated in euro and those denominated in other currencies for the
Group under U.S. GAAP at December 31, 2005, 2006 and 2007.

|        |                                                 | Year ended December 31, |           
|------- | ----------------------------------------------- | ----------------------- | ----------
|
|
|
|Assets: |                                                 |                         |           
|        | Cash and due from banks                         |                         | 1,167,654 
|        | Deposits with central bank                      |                         | 1,067,670 
|        | Securities purchased under agreements to resell |                         | 2,493,680 
|        | Interest bearing deposits with banks            |                         | 277,620   
|        | Money market investments                        |                         | 67,897    
|        | Trading assets                                  |                         | 13,711,152
|        | Available-for-sale securities, at fair value    |                         | 2,050,985 
|        | Held to maturity                                |                         | 20,867    
|        | Equity method investments                       |                         | 230,117   
|        | Loans                                           |                         | 27,176,041
|        | Less: Allowance for loan losses                 |                         | (893,005  
|        | Net loans                                       |                         | 26,283,036
|        | Goodwill, software and other intangibles        |                         | 327,984   
|        | Premises and equipment net                      |                         | 646,145   
|        | Customers' liability on acceptances             |                         |          
|        | Accrued interest receivable                     |                         | 515,522   
|        | Other assets                                    |                         | 2,071,232 
|        | Assets classified as held for sale              |                         |          
|        |                                                 |                         |           
|        | Total assets                                    |                         | 50,931,561
|        |                                                 |                         |           

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|
|

|                                                         |  | Year ended December 31,
|-------------------------------------------------------- |  | -----------------------
|
|
|
|Liabilities and Shareholders' Equity:                    |  |                        
|Deposits                                                 |  | 36,277,754             
|Securities sold under agreements to repurchase           |  | 2,682,877              
|Other borrowed
funds                                     |  |                        
|Acceptances outstanding                                  |  | 204                    
|Accounts payable, accrued expenses and other
liabilities |  | 2,981,786              
|Long-term debt                                           |  | 2,147,691              
|Insurance reserves                                       |  | 1,499,971              
|Liabilities classified as held for sale                  |  |                       
|                                                         |  |                        
|Total liabilities                                        |  | 45,590,283             
|Minority interests                                       |  | 69,505                 
|Total shareholders'
equity                               |  | 2,113,908              
|                                                         |  |                        
|Total liabilities and shareholders'
equity               |  | 47,773,696             
|                                                         |  |                        

Capital Adequacy

The capital adequacy ratios applicable to Greek banks conform to EU requirements, in particular the Own Funds Directive, the Solvency Ratio Directive and the
Capital Adequacy Directive. See Item 4.B, "Business OverviewRegulation and Supervision of Banks in Greece". It is the aim of the
Bank to maintain a capital ratio in excess of the 8% ratio required by the Greek supervisory authority.
At December 31, 2006, the Bank and the Group had €5,569 million and €5,378 million, respectively, of Tier I capital and
€8,071 million and €6,778 million, respectively, of total capital. At December 31, 2007, the Bank and the Group had
€6,150 million and €4,881 million, respectively, of Tier I capital and €7,269 million and
€5,427 million, respectively, of total capital.

The
following table shows the EU capital adequacy ratios for the Bank and the Group at December 31, 2003, 2004, 2005, 2006 and 2007.

|      |  | Year ended December 31, |  
|----- |  | ----------------------- | -
|
|
|Bank  |  | 10.7                    | %
|Group |  | 10.1                    | %

C.    Research and Development, Patents and Licenses

We have not engaged in any significant research and development activities during any of the last three financial years.

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D.    Trend Information

Recent months have been characterized by increased downside growth risks in the Eurozone, and high crude oil prices. Further, the Turkish lira has depreciated
against the euro during the last quarter of 2007 and early 2008. We do not know how these counteracting forces will evolve in the future and how these could influence the demand for our products and
services, the credit quality of borrowers (with the corresponding pressures on our risk management) as well as income from foreign operations and revenues from foreign exchange dealing. We expect that
in 2008 the decline in the asset yield will reverse due to the tightening liquidity conditions and that the yield curve will steepen, while loan volume will continue to grow strongly.

E.    Off-balance Sheet Arrangements

In the normal course of business, the Group enters into a number of contractual commitments on behalf of its customers and is a party to financial instruments
with off-balance sheet risk to meet the financing needs of its customers. These contractual commitments consist of commitments to extend credit, commercial letters of credit and standby
letters of credit and guarantees. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the conditions established in the contract. Commercial letters
of credit ensure payment by a bank to a third party for a customer's foreign or domestic trade transactions, generally to finance a commercial contract for the shipment of goods. Standby letters of
credit and financial guarantees are conditional
commitments issued by the Group to guarantee the performance of a customer to a third party.See Note 27 to the U.S. GAAP Financial Statementsincluded in this Annual Report. All of these
arrangements are related to the normal lending activities of the Group.

The
Group's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and commercial and standby
letters of credit is represented by the contractual notional amount of those instruments. The Group uses the same credit policies in making commitments and conditional obligations as it does for
on-balance-sheet instruments.

The
following tables summarize the Group's off-balance-sheet financial instruments, whose contract amounts represent credit risk, as of December 31, 2006 and 2007:

|                                                                    |                                                            | 2006                    |           | 2007      
|------------------------------------------------------------------- | ---------------------------------------------------------- | ----------------------- | --------- | ----------
|
|Financial instruments whose contract amounts represent credit risk: |                                                            |                         |           |           
|                                                                    | Commitments to extend credit:                              |                         |           |           
|                                                                    |                                                            | Commercial and personal |           | 15,282,264
|                                                                    |                                                            | Commercial real estate  |           | 44,991    
|                                                                    |                                                            | Residential real estate |           | 622,607   
|                                                                    | Commercial letters of credit                               |                         | 742,780   |           
|                                                                    | Standby letters of credit and financial guarantees written |                         | 5,769,479 |           
|                                                                    |                                                            |                         |           |           
|Total                                                               |                                                            | 22,462,121              |           | 26,638,022
|                                                                    |                                                            |                         |           |           

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F.     Tabular Disclosure of Contractual Obligations

Our contractual obligations as at December 31, 2007, can be summarized as follows:

|                                                          |  |           
|--------------------------------------------------------- |  | ----------
|
|
|Time deposits                                             |  | 30,783,246
|Long-term debt                                            |  | 259,107   
|Estimated interest payments on long-term debt obligations |  | 291,819   
|Operating lease obligations                               |  | 61,101    
|Insurance reserves                                        |  | 587,842   
|Pension liability                                         |  | 34,016    
|Put options of minority interest holdings                 |  | 428,187   
|Purchase obligations                                      |  | 256,247   
|                                                          |  |           
|Total                                                     |  | 32,701,565
|                                                          |  |           

G.    Safe Harbor

See "Special Note Regarding Forward-Looking Statements" in the introduction to this Annual Report.

ITEM 6    DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A.    Board of Directors and Senior Management

The Chief Executive Officer is responsible for the management of the Bank, under the supervision of the Board of Directors. The Board of Directors is composed of
15 members (two executive and 13 non-executive members, of whom at least two shall be independent, in accordance with the provisions of Greek Law 3016/2002), including the Chief
Executive Officer (who also serves as chairman) and the Deputy Chief Executive Officer. The members are elected by the shareholders at the general meeting for a term of three years and may be
re-elected.

While
the Hellenic Republic has no statutory right to appoint directors of the Bank, it has significant indirect influence on the Bank through the 16.6% owned by pension funds (as at
April 30, 2008, the most recent practicable date) and therefore may have the de facto ability to appoint certain or all directors through the exercise of its voting rights. The chairman is
elected by the Board of Directors.

The
Board of Directors meets as required by Greek law, or the Bank's Articles of Association and is convened either by its Chairman or at the request of any two directors. The Board of
Directors may also meet by way of teleconference. The quorum for a Board of Directors meeting is a majority of all Board members. In addition, at least five directors must be physically present at the
meeting. Resolutions are adopted by majority vote of those present and those who have submitted proxies. Each director has one vote but may also represent one other director by written proxy.

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Following
the Bank's General Meeting of Shareholders held on May 25, 2007, the Board of Directors is now as follows:

|Executive Members                 |                                              | 
|--------------------------------- | -------------------------------------------- | 
|                                  | Efstratios-Georgios (Takis) A. Arapoglou     | 
|                                  | Ioannis G. Pechlivanidis                     | 
|Non-Executive Members             |                                              | 
|                                  | Ioannis C. Yiannidis                         | 
|                                  | Georgios Z. Lanaras                          | 
|                                  | Achilleas D. Mylonopoulos                    | 
|                                  | Ioannis P. Panagopoulos                      | 
|                                  | Stefanos G. Pantzopoulos                     | 
|Independent Non-Executive Members |                                              | 
|                                  | H.E. the Metropolitan of Ioannina Theoklitos | 
|                                  | Stefanos C. Vavalidis                        | 
|                                  | Dimitrios A. Daskalopoulos                   | 
|                                  | Nikolaos D. Efthymiou                        | 
|                                  | Georgios I. Mergos                           | 
|                                  | Constantinos D. Pilarinos                    | 
|                                  | Ploutarchos K. Sakellaris                    | 
|                                  | Drakoulis K. Fountoukakos-Kyriakakos         | 

Curricula vitae

Below are the curricula vitae of the Chief Executive Officer and Deputy Chief Executive Officer, as well as those of the principal managers running various
businesses of the Bank.

ChairmanChief Executive Officer

Efstratios-Georgios (Takis) Arapoglou.Mr. Arapoglou, age 57, became Chairman and Chief
Executive Officer of the Bank on March 19, 2004. He is a graduate of the University of Athens School of Mathematics in 1974, and holds a BSc in Naval Architecture from the University of Glasgow
in 1977 and an MSc in Management from the Brunel University in 1978. From 1978 to 1991 he worked for Paine Webber, Citicorp Investment Bank and Chase Investment Bank in London specializing in debt and
equity capital markets, derivatives and strategic consulting for multinational companies, financial organizations and governments in North America, Scandinavia and Western Europe. In 1991, he became
President and Chief Executive Officer of the Ionian and Popular Bank of Greece Group. He was also appointed President of DIAS Interbanking Systems S.A., overseeing the completion of the
project, which was delivered to the Greek banking system in 1993. (DIAS Interbanking Systems has currently 40 banks as shareholder participants including the Bank and provides interbank services, such

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as
check clearing, ATM networking, fund transfers, payroll and pension services for the benefit of customers of shareholder participants). From 1994 to 1997, he served as General Manager of American
Express-Greece and in 1997 became General Manager of Citibank/Citigroup-Greece. In 2000, he joined Citigroup in London as Managing Director and Global Banks Industry Head, and at the beginning of 2004
became Senior Advisor on Global Corporate and Investment Banking.

He
has served as a member of the Supervisory Boards of Citibank-Sweden from 1984 to 1985 and Chase Manhattan Bank-Finland from 1989 to 1990, the Boards of the Hellenic Bank
Association from 1991 to 1993 and the Egyptian American Bank, an American Express subsidiary in Egypt from 1994 to 1996, and the Asset and Liability Committee of Citigroup Europe. Since 2005, he has
served as President of the Hellenic Banks Association.

Vice-Chairman and Deputy Chief Executive Officer

Ioannis Pechlivanidis.Mr. Pechlivanidis, age 55, was appointed Vice-Chairman and
Deputy Chief Executive Officer of the Bank on April 22, 2004. He holds a BA in Economics from Wesleyan University and an MSc in Economics from the London School of Economics. He worked at The
First National Bank of Chicago from 1980 to 1989, subsequently becoming Loan Manager at the Bank of America. In 1990, he joined Xiosbank S.A, becoming General Manager in 1997. In 1999, he was
appointed to the post of Deputy Managing Director of Piraeus Bank, going on to become Managing Director of Millennium Bank in Athens. Since 2003, until taking up his current appointment, he held the
post of first Vice-Chairman of Bank Post (a subsidiary of EFG Eurobank in Romania).

The
business address of the Chief Executive Officer and Deputy Chief Executive Officer is 86 Eolou Street, 10232 Athens, Greece.

Key Management

Dr. Omer A. Aras,age 54, is Vice-Chairman of the Finansbank's Board of Directors, Head of NBG
Group International Activities and Chief Executive Officer of Finansbank. Dr. Aras graduated from the Istanbul Academy of Economic and Commercial Sciences, Department of Economics, in 1975. He
received an MBA in 1978 and a PhD in Business Administration in 1981 from Syracuse University. Over the next three years, he was a faculty member at the Business Administration Department of Ohio
State University and worked as a consultant. Between 1984 and 1987, he served as Credit Marketing Manager and Credit Committee Member at Citibank, and worked as the Head of Yapi Kredi Securities.
Dr. Aras participated in the founding of Finansbank in 1987, and served as Assistant General Manager for two years and as General Manager for six years and as an Executive Board Member of
Finansbank and Vice-Chairman of Fiba Holding from 1989 to 2006. Between 2003 and 2007 he also served as Board Member of the Turkish Industrialists' Businessmen's Association.

Doucas J. Palaiologos,age 56, is Chairman and Managing Director of EH. Mr. Palaiologos was professionally trained in the United
Kingdom from 1970 to 1972 by the Century Insurance Co. Ltd. and Glanvil Enthoven Insurance Brokers, and since 1972 he has worked continuously for Hellenobretaniki Insurance Company. He
has been Chairman and Managing Director of Hellenobretaniki, Vice-President of Palmafone Hellenic Mobile Communications and President of Unifon Company. He has also been
Vice-President of ICAP S.A., and has been a Board Member of Air Liquide and IOBE. Mr. Palaiologos has also been Chairman of the Association of Insurance
CompaniesGreece for the terms 1989-1990, 1990-1992, 1996-1998 and 2005-2007, and Secretary General from 2003 to 2004. Currently, he is the
Vice-Chairman of the Association of Insurance CompaniesGreece. Additionally, Mr. Palaiologos is the Chairman of the Board of Directors for the following companies:
Garanta Insurance Company (Romania), Ethniki Insurance Company (Cyprus) and Alpha Insurance Brokers S.A. He holds a law degree from Athens Law School, an MBA from INSEAD Fountainebleau and he
is a Fellow of the Chartered Insurance Institute.

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Marinos Stratopoulos,age 44, is the President of the Executive Board of Vojvodjanska since its acquisition by the Group in December 2006.
He started his career in banking in 1993 in Xiosbank S.A. and then served in several managerial positions in Piraeus Bank Group, Egnatia Bank Romania S.A., Egnatia Bank S.A. and
National Bank of Greece a.d. Beograd. In parallel to his banking career, he worked from 1993 to 2000 as a part time instructor in Accounting, Mathematics of Finance, Business Administration and
Business Finance at the American College of Greece. He holds a Diploma of Deck Officer of the Merchant Marine, a BSc in Business Administration from the American College of Greece and an MSc from the
University of Lancaster.

Hector Zarca,age 48, is Managing Director and Chief Executive Officer of the SABA. He joined the Bank in November 2001 as Chief Financial
Officer and was elected as a member of the Board of Directors in August 2002, after which he was appointed to his present position in December 2003. He was previously Group Financial Director of
Sasfin Holdings Limited for five years from August 1996, after seven years of service with the Standard Bank of South Africa Limited, rising to the position of Chief Financial Officer of Commercial
Banking. Mr. Zarca obtained a BComm and BAcc from the University of the Witwatersrand and thereafter qualified as a chartered accountant in 1985.

Stilian Vatev,age 51, is the Chief Executive Officer and a member of the Board of Directors of UBB. He joined UBB in 1993 after serving
in several managerial positions at the Bulgarian National Bank. He is also a member of the Board of Directors of the Bulgarian Central Depository, "Bankservice" AD, Interlease AD, Interlease Auto AD,
and UBB Asset Management AD. Further, Mr. Vatev is the Chairman of the Board of Directors of UBB-AIG Life Insurance Company AD and UBBAIG Insurance and Reinsurance
Company AD, and is a member of the SEE Regional Advisory Board of MasterCardEurope. Mr. Vatev holds an MA in Finance and Credit and has attended several banking-related programs in
the United Kingdom, Switzerland and Japan.

Gligor Bishev,age 50, is the First General Manager of Stopanska Banka. He joined Stopanska Banka in 2000 after serving as Deputy Governor
of the National Bank of FYROM. Mr. Bishev is an Associate Professor at the Faculty of Economics, Prilep, and Professor at the Post-Graduate Studies at both the Faculty of Economics,
Skopje and the Institute of Economics, Skopje. He participated in the monetary reform in the FYROM as well as in several research projects in banking, monetary policy, applied economics, and economic
development. He holds a PhD in Economics and has attended various seminars and training courses in Austria, the United Kingdom and Switzerland.

Michalis Kokkinos,age 64, is the Managing Director and a member of the Board of Directors of NBG Cyprus since March 2007. He is also
member of the Board of Directors of Ethniki Insurance (Cyprus) Ltd and represents the Bank as a member of the Board of Directors of the Association of Cyprus Commercial Banks. He has
40 years of experience in the banking sector and has held several senior managerial positions with the Group, as well as with Aspis Bank, a Greek bank headquartered in Athens.

Andreas Maragoudakis,age 64, is the General Manager and Vice-Chairman of the Board of Directors of Banca Romaneasca SA
He joined Banca Romaneasca in November 2004, after serving for one year as Risk Management Executive and Deputy Chief Executive Officer in Bancpost in Romania. His previous work experience includes
managerial positions in various banks such as Alpha Bank SA, Piraeus Bank and American Express Bank. Mr. Maragoudakis holds an MA in International Relations from Ottawa University,
Canada. He has attended a number of seminars in Banking and Management.

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General Managers

In July 2002, the Board of Directors appointed General Managers whose role is to supervise and coordinate the tasks of the various divisions or groups of
divisions. The General Managers each report to the Chief Executive Officer and the Deputy Chief Executive Officer and are responsible for:



There
are currently 14 General Managers:

Core Business Lines

Alexandros Tourkolias,age 61, is the Executive General Manager of Corporate and Investment Banking. He is a
member of the Bank's Credit Committee, Chief Executive Officer and Vice-President of Ethniki Leasing, Vice-President of NBG Bancassurance, First Vice-President of
EH and on the Boards of Directors of NBG Cyprus, UBB and NBGI.

Alexandros Georgitsis,age 63, is the Executive General Manager of Retail Banking. He is also on the Boards of Directors of EH, NBG Asset
Management Mutual Funds and NBG Bancassurance.

Petros Christodoulou,age 47, is the General Manager of Treasury and Private Banking. He is the Vice-President of National P&K
Securities. He is also a member of the Investment Committee of EH and the Foundation for Economic and Industrial Research.

Abraham-Minos Moissis,age 46, is the General Manager of Domestic Branch Network NBG. He is the Managing Director of NBG Bancassurance and
he is on the Board of National P&K Securities and EH.

Demetrios Demopoulos, age 61, is the General Manager of Corporate Banking. He is on the board of directors of National P&K Securities,
Ethniki Leasing and Astir Palace.

Operations and Support

Anthimos Thomopoulos,age 47, is the Chief Financial Officer and Chief Operations Officer. He joined the Bank in
1998 as Group Risk Director after serving as a Managing Partner of KPMG Greece. He is Chairman of the Board of Protypos, Ethnoplan, and Ethnodata, and Vice-Chairman and CEO of Astir
Palace. He is on the Board of SABA, UBB, Finansbank, Vojvodjanska, Siemens Televiomichaniki, the Hellenic Deposit Guarantee Fund and ETAT.

Demetrios Lefakis,age 47, is the Chief Risk Officer. Before joining NBG, he worked for Citigroup in various senior positions in the
United States, Latin America and Asia. He is on the Boards of Directors of Finansbank and P&K Securities S.A.

Michael Oratis,age 51, is the General Manager of Risk Management. Before joining the Bank in 1999, he worked for ABN AMRO Bank,
Mytilinaios SA and Citibank as Country Treasurer. He is a member of the Board of Directors of SABA.

Agis Leopoulos,age 40, is the General Manager of International. He is also the Chairman of Interlease and South African Bank of Athens,
and a member of the Board of Directors of NBG Cyprus, Stopanska Banka, UBB, Banca Romaneasca and Vojvodjanska.

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Petros Economou,age 71, is the General Counsel. He joined the Bank in September 2005 after serving as Manager of the Legal Division of
Ionian and Popular Bank and American Express in Greece. He is Vice-Chairman of Ethniki Kefalaiou S.A. and Vice-Chairman of NBG Asset Management Mutual Funds.

Stavros Gatopoulos,age 64, is the Head of Human Resources and Group Internal Communications. He joined the Bank in September 2005 after
serving as Head of the Human Resources Division of Citibank Athens. He is the Chairman of NBG Training Center.

Paul Mylonas,age 49, is the Chief Economist, Chief Strategist and Head of Investor Relations. Before joining the Bank, he worked at the
OECD and the IMF. He is a member of the Boards of Directors of the Foundation for Economic and Industrial Research and the Hellenic Center for Investment.

George Paschas,age 52, is the Chief Audit Executive.

Eleni Tzakou-Lampropoulou,age 46, is the General Manager of Operations. She is the Vice-Chairman of Ethnodata and a member of
the Board of Directors of National P&K Securities.

NBG Group Executive Board

The NBG Group Executive Board was established by Management's Act No. 1311/28.09.2006 and is the supreme body of the Bank with approving authority. It may
decide, under the authority vested in it by
the Bank's Board of Directors on issues regarding the implementation of the Bank's business plan, which do not fall under the authority of other committees or Bank's Executives.

The
following are members of the NBG Group Executive Board:



Executive Credit Committee

The Executive Credit Committee was established by Management's Act No. 244/08.04.2008 and its purposes are to:



The
following are members of the Executive Credit Committee:



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B.    Compensation

In 2007, total remuneration received by the members of the Bank's Board of Directors and the Bank's General Managers from Group companies amounted to
€12 million.

For
more information on related party transactions, see Note 32 of the U.S. GAAP Financial Statements included elsewhere in this Annual Report.

Total
remuneration comprises salaries, fees, bonuses and other short-term benefits, post employment and other long-term benefits, and termination benefits.

The
above persons were also granted 385,000 and 810,300 options, under stock option programs A and B, respectively. For more information on the Bank's stock option program see
Item 6.E, "Share Ownership".

According
to the Bank's management, apart from the above amounts, the Bank's directors and general managers are not entitled to any further amounts from the Bank or our subsidiaries.

We
do not set aside or accrue amounts to provide pension, retirement or similar benefits for the Bank's Board of Directors or members of management apart from their participation in
social security schemes.

C.    Board Practices

We do not have directors' service contracts or other agreements that provide for benefits on termination of employment.

The
following list summarizes the terms of office of the members of the Board of Directors of the Bank.

|Name                                         |  | Start of Term     |  | End of Term
|-------------------------------------------- |  | ----------------- |  | -----------
|Efstratios-Georgios (Takis) Arapoglou        |  | March 17, 2004    |  | 2010       
|Ioannis Pechlivanidis                        |  | April 22, 2004    |  | 2010       
|H.E. The Metropolitan of Ioannina Theoklitos |  | June 28, 1994     |  | 2010       
|Stefanos Vavalidis                           |  | April 22, 2004    |  | 2010       
|Ioannis Yiannidis                            |  | April 22, 2004    |  | 2010       
|Dimitrios Daskalopoulos                      |  | April 24, 2002    |  | 2010       
|Nikolaos Efthymiou                           |  | April 22, 2004    |  | 2010       
|Georgios Lanaras                             |  | December 23, 1993 |  | 2010       
|Achilleas Mylonopoulos                       |  | August 30, 2006   |  | 2010       
|Ioannis Panagopoulos                         |  | June 28, 1994     |  | 2010       
|Stefanos Pantzopoulos                        |  | April 22, 2004    |  | 2010       
|George Mergos                                |  | March 15, 2007    |  | 2010       
|Constantinos Pilarinos                       |  | April 22, 2004    |  | 2010       
|Ploutarchos Sakellaris                       |  | April 22, 2004    |  | 2010       
|Drakoulis Fountoukakos-Kyriakakos            |  | April 22, 2004    |  | 2010       

The Bank's corporate governance practices closely follow the requirements imposed by the laws of Greece. The most significant differences between
the Bank's corporate governance practices, including the provisions of the Sarbanes-Oxley Act, and those followed by U.S. based companies under the New York Stock Exchange listing standards have been
posted on the Bank's website at the following address:www.nbg.gr.

In
2007, after successfully accomplishing the key objectives of the corporate governance improvement plan adopted in 2005, the Bank renewed its commitment to further enhance its
corporate governance practices by adopting a new improvement plan that was adopted by the Board of Directors. The Bank's

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actions
in corporate governance are part of a broader effort of the Bank's management and Board of Directors to improve long-term shareholder value.

The
most significant corporate governance objectives adopted and achieved in the most recent improvement plan are to:



Board Committees



The Audit Committee of the Bank was established in May 1999, following the Act of the Governor of the Bank of Greece 2438/1998, and at present consists of five
members. The Bank's Board of Directors appoints the members of the Audit Committee for a one-year term. The Board of Directors of the Bank is responsible for appointing and replacing any
member of the Audit Committee.

In
March 2008, pursuant to the Bank of Greece Governor's Act 2577 of March 9, 2006, and the requirements of the Sarbanes-Oxley Act, the Audit Committee Charter was amended. The
purpose of the Audit Committee is to:



All
Audit Committee members fulfill the independence criteria for the purposes of U.S. legislation.

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The
following list sets forth the members of the Bank's Audit Committee, as at December 31, 2007:



The purpose of the Human Resources and Remuneration Committee ("HRR Committee") is to assist the Board of Directors in fulfilling its responsibilities with
regards to attracting, retaining, developing and motivating executives and employees of the Bank, to develop a culture of fairly evaluating effort and rewarding performance, to develop and maintain a
coherent system of values and incentives for human resource development throughout the Bank.

In
2007, the HRR Committee formulated the NBG Group Remuneration Principles and Executive Director Remuneration Policy, which defines a transparent framework for top executive
remuneration that promotes meritocracy and a performance based culture. In addition, the HRR Committee oversaw the establishment of the Bank's Stock Option Programs which were approved by the General
Meeting of Shareholders in June 2005 and June 2006 and whose beneficiaries are Executive Directors, senior executive officers and employees of the Bank and the Group.

All
HRR Committee members fulfill the independence criteria for the purposes of applicable Greek law and were determined to be independent by the General Meeting of Shareholders in
May 2007.

The
following list sets forth the current members of the Bank's HRR Committee:





The purpose of the Corporate Governance and Nominations Committee (the "CGN Committee") is to assist the Board of Directors in ensuring that its composition,
structure, policies and processes meet all relevant legal and regulatory requirements, strive to achieve global corporate governance best practice standards and facilitate the Board and management's
task to increase the long-term value of the Bank.

In
2007, the CGN Committee spearheaded the annual Board Evaluation, which was conducted by an independent facilitator based on the board evaluation policy and practice formulated a year
earlier and adopted by the Board. Based on the results of the evaluation and in conjunction with a compliance review of the Bank's Corporate Governance Guidelines, the CGN Committee formulated the
corporate governance improvement plan for the Bank and the Group for 2007-2008.

The
corporate governance improvement plan, which is currently being implemented, consists of 13 objectives to further enhance the Bank's and the Group's corporate governance
framework. It focuses on the following four integral areas of corporate governance; board procedural matters, board composition and remuneration, management oversight/group organization and relations
with investors and shareholders.

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The following list sets forth the current members of the CGN Committee:



Mr. Vavalidis
and Mr. Sakellaris fulfill the independence requirements of applicable Greek law and have been determined to be independent by the General Meeting of
Shareholders in May 2007.



In July 2006, pursuant to the Bank of Greece Governor's Act 2577 of March 9, 2006, the Bank established the Risk Management Committee. The purpose of the
Risk Management Committee is to:



In
2007, the Risk Management Committee formulated Credit Policies for the Corporate and Retail Banking Portfolios of the Bank and adopted policies on Liquidity Risk, Market Risk,
Operational Risk and Interest Rate Risk for the Bank's portfolio.

The
following list sets forth the current members of the Bank's Risk Management Committee:



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D.    Employees

The Bank employed a total of 13,393 staff in Greece as at December 31, 2007, compared to 12,866 as at December 31, 2006. Additionally, the Group's
subsidiaries in Greece and abroad employed approximately 20,871 employees as at December 31, 2007, compared to 18,065 as at December 31, 2006. We also employed 253 temporary employees
Group-wide in 2007. The table below sets forth average number of our employees by geographic location for 2007:

Country

Average number of Group employees
(during 2007)(1)Greece

15,604Bulgaria

2,571FYROM

1,093Romania

1,311United States

2Cyprus

277Serbia

2,807South Africa

172United Kingdom

113Albania

195Egypt

38Turkey

9,190Total

33,373


---

The table below sets forth the main categories of activity in which our employees were engaged, domestically and internationally, during 2007:

Division

Average number of Group employees
(during 2007)Commercial and retail banking

30,594Insurance

1,427Investment banking

324Asset management

120Other Group companies

908Total

33,373


Almost all of the Bank's staff are members of one of the various unions operating within the banking sector. A high level of union membership is
common in most Greek industries. Each union that represents the Bank's employees is affiliated with a larger, general union of employees in the banking sector known as the Union of Greek Bank
Employees ("OTOE"). OTOE, in turn, sits under the umbrella of a multi-industry union, the General Confederation of Greek Workers. Accordingly, almost all of our Greek employees, including those not
employed in the banking sector, are ultimately affiliated with the General Confederation of Greek Workers. Collective bargaining arrangements were held in the past between representatives of the Greek
banks and OTOE based on the Hellenic Republic's inflation estimates, and then implemented by each bank (including the Bank) in agreement with its own unions. OTOE and the Greek Association of Banks
came to a two-year agreement (for 2006-2007) allowing a 5.24% increase in 2006 and 5.32% increase in 2007. The union of Bank employees has also come to a two-year
agreement with the Bank's management allowing an increase in certain types of benefits. For 2008 the Bank unilaterally announced on May 20, 2008 a general salary

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increase
on the base salary for its personnel with retrospective effect from January 1, 2008. The increase is granted in two installments: 3% for higher level employees and 3.5% for lower level
employees as of January 1, 2008 and 2.5% and 3% as of September 1, 2008 respectively. Should there be any collective salary arrangements deviating from the above, the Bank is committed
to adopt the best case scenario for its personnel.

Like
other Greek banks, the Bank has experienced a number of strikes and other industrial actions in the past mainly over pension and wage issues. Bank employees throughout Greece went
on strike for three days in 2007 and nine days in 2008 (up to May 15, 2008), mainly on the grounds of pension reforms passed by the Greek Government in March 2008. Sporadic local strikes also
took place during the above periods.

Following
legislation passed in April 2008, the Bank's main pension plan and the main pension branch of EH post retirement and health plan will be incorporated into the main pension
branch of the state sponsored social security fund IKA - ETAM as of August 1, 2008. Pursuant to this legislation, which must be enacted by Ministerial Decree in order to come into
force, the Bank will contribute €25.5 million into IKA - ETAM per year for 15 years starting from December 2009. The Bank has contested these payments as
unfair compared to those imposed to other banks and has reserved all legal rights. The April 2008 legislation also prescribes that employer contributions made by the Bank to the existing funds to be
merged into IKA - ETAM, will be reduced every three years in equal increments starting from 2013 from 26.5% until they reach 13.3% for employees who joined any social security plan prior
to January 1, 1993. Employer contributions made by EH to the existing funds to be merged into IKA - ETAM will also be reduced every three years in equal increments
until they reach 13.3% from 20.0% for employers who joined any social security plan prior to January 1, 1993.

In
addition, in 2005 and 2006, the Hellenic Republic passed legislation (Law 3371/2005, as amended) permitting bank employee auxiliary pension schemes to merge with the new Insurance
Fund of Bank Employees ("ETAT"). The law provides that, in connection with the merger of auxiliary schemes with
ETAT, the relevant employer shall make a payment to ETAT solely in an amount to be determined by an independent financial report commissioned by the Ministry of Finance pursuant to this legislation.
Subsequently, in April 2006 the Bank applied under Law 3371/2005, as amended, to merge its Auxiliary Pension Fund into ETAT. It is possible that we may make a significant cash payment to ETAT in
connection with the merger of the Bank's employee pension schemes with ETAT. For risks associated with the new pension reform legislation, see Item 3.D, "Risk
FactorsWe could be exposed to significant future pension and post-retirement benefit liabilities".

E.    Share Ownership

On June 22, 2005, at a General Meeting of Shareholders, a stock option program ("Program A") was approved for the executive members of the Board of
Directors, management and staff of the Group. The maximum number of new ordinary shares to be issued under Program A was set at €2.5 million and adjusted to
€3.5 million as a consequence of the 4 to 10 share capital increase in 2006. Program A shall last for five years and expires in 2010.

At
the repeat General Meeting of Shareholders on June 1, 2006, a new Group-wide stock option program ("Program B") was approved for the Bank's executive members
of the Board of Directors, management and staff of the Group. The maximum number of new ordinary shares to be issued under Program B was set at €2.5 million and adjusted
to €3.5 million as a consequence of the 4 to 10 share capital increase in 2006. Program B shall last five years and expires in 2011.

On
June 28, 2007 the repeat General Meeting of the Shareholders of the Bank approved a new Group-wide stock option plan ("Program C") for the Bank's executive
members of the Board of Directors, management and staff of the Group. The new Program shall last eight years and expires in 2015. The stock option must be granted up until 2010. The maximum
number of new ordinary shares to issue under the Program C shall be 12 million. The maximum number of options that can be granted

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per
year cannot exceed 1% of the total number of ordinary shares outstanding. The strike price shall be within the range of €5 to 85% of the average price thereof within the time
period from January 1 of the year the options are granted until the October 31, of the same year.

On
November 29, 2006, the Board of Directors approved the issue of 2,992,620 share options under Program A. The exercise price was set at €23.8 per share.
The fair value of the granted share options amounted to €32.6 million. The vesting conditions were as follows:



The
vested options are exercisable between December 6 and December 15 for 2006 and between December 1 and December 10 for each subsequent year until 2010.
After that date any unexercised options are cancelled. The options are forfeited if the employee leaves or is fired with cause from the Group before the options vest.

On
November 1, 2007, the Board of Directors approved the issue of a further 496,500 share options under Program A with the same exercise price. The vesting conditions were
as follows:



Therefore,
the total shares granted under Program A amounted to 3,489,120.

On
November 1, 2007, the Board of Directors approved the issuance of 3,014,100 share options under Program B. The exercise price was set at €23.00 per
share. The vesting conditions were as follows:



The
vested options are exercisable as follows:



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After
that date the unexercised options are cancelled. The options are forfeited if the employee is fired from the Group with cause before the options are exercised.

The
General Meeting of Shareholders on May 25, 2007 approved the distribution to the Bank's staff of bonus shares with the issuance of 350,000 new shares of a par value of
€5, by capitalizing profits of €1.75 million, resulting in a share capital increase of an equal amount.

As
at April 30, 2008 1,871,285 shares have been issued, in accordance with Programs A and B.

Share
ownership as of April 30, 2008 (the most recent practicable date) of the members of the Bank's Board of Directors, the Bank's General Managers and key management of
subsidiaries, as listed in Item 6.A, "Board of Directors and Senior Management", as well as stock options granted to those persons under Programs
A and B are as follows:

|                                             |  |        |  | Program A |  | Program B
|-------------------------------------------- |  | ------ |  | --------- |  | ---------
|
|Efstratios-Georgios (Takis) Arapoglou        |  | 30,000 |  | 210,000   |  | 30,000   
|Ioannis Pechlivanidis                        |  | 45,323 |  | 185,000   |  | 27,750   
|H.E. the Metropolitan of Ioannina Theoklitos |  | 2,843  |  |          |  |         
|Ioannis Yiannidis                            |  | 1,706  |  | 4,000     |  | 600      
|Nikolaos Efthymiou                           |  | 7,402  |  |          |  |         
|Achilleas Mylonopoulos                       |  | 1,133  |  |          |  |         
|Ioannis Panagopoulos                         |  | 763    |  |          |  |         
|Stefanos Pantzopoulos                        |  | 9,050  |  |          |  |         
|Drakoulis Fountoukakos-Kyriakakos            |  |       |  |          |  |         
|Alexandros Tourkolias                        |  | 10,000 |  | 84,100    |  | 38,550   
|Alexandros Georgitsis                        |  | 49,000 |  | 84,100    |  | 38,500   
|Petros Christodoulou                         |  |       |  | 61,720    |  | 30,860   
|Anthimos Thomopoulos                         |  |       |  | 166,500   |  | 55,250   
|Demetrios Lefakis                            |  |       |  | 57,600    |  | 28,800   
|Michael Oratis                               |  | 18,920 |  | 41,200    |  | 20,600   
|Agis Leopoulos                               |  | 29,601 |  | 61,200    |  | 23,600   
|Petros Economou                              |  | 25,139 |  | 61,200    |  | 20,000   
|Stavros Gatopoulos                           |  | 23,980 |  | 51,200    |  | 22,100   
|Paul Mylonas                                 |  | 2,150  |  | 61,200    |  | 6,180    
|George Paschas                               |  | 22,920 |  | 51,200    |  | 22,100   
|Eleni Tzakou-Lambropoulou                    |  | 6,025  |  |          |  |         
|Avraam Moissis                               |  | 19,500 |  | 30,000    |  | 15,000   
|Demetrios Demopoulos                         |  | 8,000  |  | 16,000    |  | 8,000    
|Omer A. Aras                                 |  |       |  | 60,700    |  | 19,850   
|Doucas Palaiologos                           |  | 17,000 |  | 40,000    |  | 20,000   
|Marinos Stratopoulos                         |  |       |  | 20,000    |  | 10,000   
|Hector Zarca                                 |  | 6,050  |  | 10,000    |  | 5,000    
|Stilian Vatev                                |  | 11,750 |  | 25,000    |  | 12,500   
|Gligor Bishev                                |  | 4,250  |  | 10,000    |  | 5,000    
|Andreas Maragoudakis                         |  | 6,500  |  | 20,000    |  | 10,000   

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ITEM 7   MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A.    Major Shareholders

As of April 30, 2008, the Bank's outstanding issued share capital consisted of 477,198,461 ordinary shares. No single shareholder beneficially owns more
than 3.1% of the Bank's shares. The following table sets forth certain information regarding the Bank's shareholders.

|                                              |  | As at April 30, 2008 | 
|--------------------------------------------- |  | -------------------- | 
|
|Legal entities and individuals outside Greece |  | 252,989,804          | 
|Domestic Private investors                    |  | 90,597,766           | 
|Pension funds and other public sector         |  | 78,997,919           | 
|Other domestic legal entities                 |  | 54,087,792           | 
|NBG own stock                                 |  | 525,180              | 
|                                              |  |                      | 
|Total                                         |  | 477,198,461          | 
|                                              |  |                      | 

The Bank's major shareholders do not possess different voting rights from the Bank's other shareholders. Other than the Hellenic Republic through
certain state-related entities, the Bank does not know of any other persons who, directly or indirectly, jointly or individually, exercise or could exercise control over the Bank.

Based
on information known to or ascertainable by the Bank, there were 16,770 record holders of the Bank's shares and 45 record holders of the Bank's ADRs in the United States on
March 28, 2008, and the portion of the Bank's shares held in the United States as a percentage of total shares outstanding was approximately 2.92% as at that date. There were 16,815 total
holders (registered and beneficial owners) of the Bank's ADRs in the United States as at March 28, 2008 (the most recent practicable date for this information).

Although,
subject to certain exceptions, Greek law does not allow an entity to acquire and own its own shares, subsidiaries in Greece were allowed to own and trade in the market shares
of their parent company until March 16, 2001, and may continue to own shares acquired prior to such date. Treasury stock in our financial statements represents shares of the Bank owned by the
Bank or our subsidiaries.

State Interests

The Hellenic Republic no longer holds directly any of the Bank's shares. However, certain state-related entities, primarily pension funds (most of whose boards of
directors are appointed by the Hellenic Republic) still control shares representing approximately 16.6% of the issued share capital of the Bank as at April 30, 2008.

See
Item 10.J, "Relationship with the Hellenic RepublicShareholding".

B.    Related Party Transactions

There are no loans or transactions between the Bank and any related parties other than those made in the ordinary course of business, on substantially the same
terms as those prevailing at the time for comparable transactions with other persons and not involving more than the normal risk of collectibility or presenting other unfavorable features. See Note 32 to the
U.S. GAAP Financial Statementsfor details of certain ordinary course transactions between the Bank and related parties.

C.    Interests of Experts and Counsel

Not applicable.

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ITEM 8    FINANCIAL INFORMATION

A.    Consolidated Statements and Other Financial Information



Before
paying dividends, the Bank, in accordance with our Articles of Association and Greek corporate law (codified law 2190/20), must allocate at least an amount of 5% to 20% of the
Bank's net profits to an ordinary reserve until this reserve equals at least half of the Bank's share capital. Under the Bank's Articles of Association and Greek corporate law, and subject to the
limitations described above and below, each year the Bank is required to pay a minimum dividend out of the net profits for the year, if any, equal to 35% of the net profits of the Bank on a standalone
basis for the year (after the deduction of statutory reserves and any profits resulting from the sale of equity participations that represent at least 20% of the paid-up share capital of a
subsidiary company in which the Bank has held an equity participation for at least ten years). According to Greek law 3460/2006, unrealized profits from marking securities to market will be deducted
from net profits in order to determine the minimum dividend.

Calculation
of all such amounts is based on the financial statements of the Bank prepared in accordance with IFRS.

Any
distribution of distributable profits in excess of the required dividend payments described above must be approved by a "General Meeting of Shareholders" (the Bank's general
meeting), with ordinary quorum and majority voting requirements, following a proposal of the Bank's Board of Directors. No distribution can be effected if, on the closing date of the last financial
year, the total shareholders' equity is, or will become after that distribution, lower than the total of the Bank's share capital and the reserves, the distribution of which is prohibited by Greek law
or the Bank's Articles of Association. In any event, dividends may not exceed net profits for the last financial year, as increased by distributable reserves, the distribution of which is permitted as
resolved at the General Meeting of Shareholders, and profits carried forward from previous years, and as decreased by any loss in the

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previous
financial year and any compulsory reserves required by law or the Bank's Articles of Association.

In
the event that the mandatory minimum dividend payments equal 35% of the net profits for the year (after the deduction of statutory reserves and any profits resulting from the sale of
equity participations that represent at least 20% of the paid-up share capital of a subsidiary company in which the Bank has held an equity participation for at least ten years), a
majority of the Bank's shareholders representing at least 65% of the paid-up share capital may vote to waive this cash dividend. The undistributed dividend must then be transferred to a
special reserve which must, within four years following the General Meeting of Shareholders, be distributed in the form of a stock dividend. However, a majority representing 70% of the Bank's
paid-up capital may vote to waive the distribution of either cash or stock dividend or both.

Once
approved, dividends must be paid to shareholders within two months of the date on which the Bank's annual financial statements are approved. Normally, dividends are declared and
paid in the year subsequent to the reporting period. Dividends are forfeited to the Hellenic Republic if they are not claimed by shareholders within five years following December 31 of the year
in which they were declared. See Item 3.A, "Selected Financial DataDividends", for information with respect to the actual dividends
paid by the Bank for the past five financial years.

The
Bank currently expects to continue to pay dividends in accordance with the formula described above, subject to the financial condition of the Bank, the funding needs of our
investment program and other relevant considerations.

B.    Significant Changes

For a discussion of significant changes that have occurred since December 31, 2007, the date of the last audited financial statements included in this
Annual Report, please see Note 42 to the U.S. GAAP Financial Statements which describes post-balance-sheet events.

ITEM 9    THE OFFER AND LISTING

A.    Offer and Listing Details

The annual high and low market prices of the Bank's shares on the ATHEX for the five most recent financial years are shown below, expressed in euro.

|Year |  | High (date)            |  | Low (date)           | 
|---- |  | ---------------------- |  | -------------------- | 
|2003 |  | 14.80 (on August 26)   |  | 5.56 (on April 1)    | 
|2004 |  | 21.87 (on December 30) |  | 13.58 (on March 24)  | 
|2005 |  | 33.25 (on December 19) |  | 21.71 (on January 3) | 
|2006 |  | 39.88 (on February 27) |  | 24.82 (on June 6)    | 
|2007 |  | 46.09 (on November 7)  |  | 33.67 (on January 2) | 

The Bank's share price for 2003, 2004, 2005, 2006 and 2007 is adjusted to reflect the issuance of new shares in connection with the
share-for-share merger with the National Investment Company (adjustment effective as at December 30, 2005), the share-for-share merger with
National Real Estate (adjustment effective as at April 10, 2006), the rights issue of four new shares for every ten shares at a price of €22.11 per new share (adjustment
effective as at June 14, 2006), the share capital increases due to the exercise of stock options (adjustments effective in January 2007 and 2008) and a stock dividend of four new shares for
every hundred shares of the Bank (adjustment effective as at May 16, 2008).

149

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The
quarterly high and low market prices of the Bank's shares on the ATHEX for the two most recent financial years are shown below, expressed in euro.

|Quarter |  | High (date)             |  | Low (date)           | 
|------- |  | ----------------------- |  | -------------------- | 
|Q1 2006 |  | 39.88 (on February 27)  |  | 32.18 (on January 2) | 
|Q2 2006 |  | 37.50 (on April 7)      |  | 24.82 (on June 6)    | 
|Q3 2006 |  | 33.40 (on September 21) |  | 26.42 (on July 7)    | 
|Q4 2006 |  | 36.03 (on November 22)  |  | 31.75 (on October 3) | 

|
|

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---



|Quarter |  | High (date)            |  | Low (date)             | 
|------- |  | ---------------------- |  | ---------------------- | 
|Q1 2007 |  | 40.46 (on February 23) |  | 33.67 (on January 2)   | 
|Q2 2007 |  | 42.57 (on May 31)      |  | 37.41 (on April 2)     | 
|Q3 2007 |  | 44.38 (on July 26)     |  | 37.12 (on August 17)   | 
|Q4 2007 |  | 46.09 (on November 7)  |  | 38.39 (on November 22) | 

The high and low market prices of the Bank's shares on the ATHEX for the quarter following the most recent financial year are shown below,
expressed in euro.

|Quarter |  | High (date)          |  | Low (date)          | 
|------- |  | -------------------- |  | ------------------- | 
|Q1 2008 |  | 45.59 (on January 9) |  | 29.83 (on March 17) | 

The monthly high and low market prices of the Bank's shares on the ATHEX for the six most recent months are shown below, expressed in euro.

|Month         |  | High (date)            |  | Low (date)             | 
|------------- |  | ---------------------- |  | ---------------------- | 
|November 2007 |  | 46.09 (on November 7)  |  | 38.39 (on November 22) | 
|December 2007 |  | 45.52 (on December 24) |  | 42.16 (on December 4)  | 
|January 2008  |  | 45.59 (on January 9)   |  | 36.35 (on January 23)  | 
|February 2008 |  | 41.37 (on February 4)  |  | 34.75 (on February 29) | 
|March 2008    |  | 35.98 (on March 12)    |  | 29.83 (on March 17)    | 
|April 2008    |  | 35.67 (on April 7)     |  | 30.10 (on April 14)    | 

On June 1, 2006, the Bank's shareholders at the General Meeting of Shareholders approved the increase in the share capital of the Bank by
€678,539 thousand, with payment in cash with pre-emptive rights in favor of existing shareholders, at a ratio of four new to ten old shares. The share capital
increase was completed on July 7, 2006. The certification of payment of the share capital was effected on July 7, 2006. A total of 135,707,764 new common registered shares were issued,
of a nominal value of €5 and offer price of €22.11, chiefly for the purpose of the implementation of the acquisition of Finansbank.

On
May 15, 2008 the Bank's shareholders at the General Meeting of Shareholders approved that shareholders entitled to dividends will receive in cash €0.40 and 4
new shares for every 100 shares of the Bank. A total of 19,067,838 new common registered shares were issued.

The
market prices of the Bank's shares on the ATHEX for the first trading day in the most recent six months before the share capital increase are shown below, expressed in euro:

|Month            |  | Historical Closing Price |  | Adjusted Closing Price
|---------------- |  | ------------------------ |  | ----------------------
|February 2, 2006 |  | 38.30                    |  | 34.23                 
|March 1, 2006    |  | 41.66                    |  | 37.24                 
|April 4, 2006    |  | 40.26                    |  | 35.99                 
|May 2, 2006      |  | 40.00                    |  | 35.77                 
|June 1, 2006     |  | 31.38                    |  | 28.06                 
|July 3, 2006     |  | 29.62                    |  | 28.41                 

The historical closing price and adjusted closing price of the Bank's shares on the ATHEX on March 3, 2006 (the last trading day before the
announcement of the share capital increase) was €39.98 and €35.73, respectively.

The
adjusted closing price reflects the issuance of new shares in connection with the share-for-share merger with National Real Estate (adjustment effective as at
April 10, 2006), the rights issue of four new shares for every ten shares at a price of €22.11 per new share (adjustment effective as at June 14, 2006), the share capital
increases due to the exercise of stock options (adjustments effective

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as
at January 25, 2007 and as at January 17, 2008) and a stock dividend of four new shares for every 100 shares of the Bank (adjustment effective as at May 16, 2008).

The
annual high and low market prices of the Bank's ADRs on the New York Stock Exchange are shown below, expressed in U.S. dollars, for the five most recent financial years:

|Year |  | High (date)            |  | Low (date)           | 
|---- |  | ---------------------- |  | -------------------- | 
|2003 |  | 4.15 (on December 30)  |  | 1.41 (on March 17)   | 
|2004 |  | 6.88 (on December 30)  |  | 3.77 (on March 11)   | 
|2005 |  | 9.00 (on December 19)  |  | 6.34 (on January 10) | 
|2006 |  | 10.53 (on February 27) |  | 6.81 (on June 14)    | 
|2007 |  | 14.09 (on November 6)  |  | 9.38 (on January 10) | 

The quarterly high and low market prices of the Bank's ADRs on the New York Stock Exchange for the two most recent fiscal years are shown below,
expressed in U.S. dollars.

|Quarter |  | High (date)            |  | Low (date)          | 
|------- |  | ---------------------- |  | ------------------- | 
|Q1 2006 |  | 10.53 (on February 27) |  | 8.61 (on January 3) | 
|Q2 2006 |  | 10.22 (on April 7)     |  | 6.81 (on June 14)   | 
|Q3 2006 |  | 9.03 (on September 21) |  | 6.96 (on July 17)   | 
|Q4 2006 |  | 9.72 (on November 24)  |  | 8.43 (on October 9) | 

|
|

|Quarter |  | High (date)             |  | Low (date)            | 
|------- |  | ----------------------- |  | --------------------- | 
|Q1 2007 |  | 11.24 (on February 23)  |  | 9.38 (on January 10)  | 
|Q2 2007 |  | 12.10 (on May 29)       |  | 10.46 (on April 2)    | 
|Q3 2007 |  | 13.00 (on September 27) |  | 9.79 (on August 16)   | 
|Q4 2007 |  | 14.09 (on November 6)   |  | 11.90 (on October 22) | 

The high and low market prices of the Bank's ADRs on the New York Stock Exchange for the quarter following the most recent financial year are
shown below, expressed in U.S. dollars.

|Quarter |  | High (date)          |  | Low (date)         | 
|------- |  | -------------------- |  | ------------------ | 
|Q1 2008 |  | 14.00 (on January 8) |  | 9.74 (on March 17) | 

The monthly high and low market prices of the Bank's ADRs on the New York Stock Exchange for the six most recent months are shown below, expressed
in U.S. dollars.

|Month         |  | High (date)            |  | Low (date)             | 
|------------- |  | ---------------------- |  | ---------------------- | 
|November 2007 |  | 14.09 (on November 6)  |  | 12.03 (on November 21) | 
|December 2007 |  | 13.96 (on December 27) |  | 12.62 (on December 17) | 
|January 2008  |  | 14.00 (on January 8)   |  | 11.00 (on January 23)  | 
|February 2008 |  | 12.97 (on February 4)  |  | 10.87 (on February 29) | 
|March 2008    |  | 11.56 (on March 12)    |  | 9.74 (on March 17)     | 
|April 2008    |  | 11.63 (on April 7)     |  | 10.03 (on April 15)    | 

Other than the suspension of trading of shares on the ATHEX and of ADRs on the New York Stock Exchange on April 3, 2006, in anticipation of
the announcement of the acquisition of Finansbank, there have been no trading suspensions with respect to the Bank's shares on the ATHEX during the past three years ended December 31, 2007, nor
have there been any trading suspensions with respect to the Bank's ADRs on the New York Stock Exchange since the Bank's listing thereon in October 1999.

B.    Plan of Distribution

Not applicable.

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C.    Markets

The Bank's shares are listed on the ATHEX, as well as the Copenhagen Stock Exchange and Luxembourg Stock Exchange. In addition, the Bank's Global Depositary
Receipts are listed on the London Stock Exchange and its ADRs are listed on the New York Stock Exchange.

The Athens Exchange (ATHEX)

General

The ATHEX was established in 1876, with Greek Government bonds and the shares of the Bank as the first securities to be traded on the ATHEX. Four years later, the
ATHEX officially opened as an exchange, following the election of its first board of directors. Today, the ATHEX is the operator of the Greek Securities Market and the Derivatives Market.

Today,
100% of the shares in the ATHEX and 99.9% of the shares in the Thessaloniki Stock Exchange Center are controlled by a holding company that trades on the ATHEX as Hellenic
Exchanges S.A. ("HELEX"), which was formed on March 29, 2000. HELEX has a share capital of €88.1 million, divided into 70,485,563 ordinary registered shares with a
nominal value of €1.25 each and is held by banks, institutional investors, listed companies and retail investors.

On
May 31, 2001, the ATHEX was upgraded by the Morgan Stanley Composite Index from emerging to developed market status.

For
the year ended December 31, 2007, the average daily value traded on the ATHEX was €482 million. From January 1, 2008 to March 31, 2008,
the average daily value traded on the ATHEX was €442 million. On March 31, 2008, 295 companies had shares listed on the Cash Market of the ATHEX. In relation to the
market capitalization of the ATHEX, on March 31, 2008:



The
Greek capital market and the ATHEX in particular are regulated under a series of laws enacted by the Greek Parliament, decisions and regulations issued by the Ministry of Economy and
Finance, the board of directors of the CMC, and the board of directors of the ATHEX. Following authorization by Law 3152/2003, the ATHEX issued on June 8, 2004, the Athens Exchange Regulation
(the "Regulation") which came into effect on June 16, 2004. The Athens Exchange Regulation has been amended from time to time, the latest amendment having taken place on April 18, 2008.
The Regulation contains, in a consolidated form, provisions which were previously included in a large number of decisions that were issued by ATHEX itself and certain other competent bodies (such as,
but not limited to, the former Derivatives Exchange) either in their original form or amended.

Membership of the ATHEX

Membership is required for brokerage firms in order to effect transactions on the ATHEX. As at April 30, 2008, there were 80 members of the ATHEX, the vast
majority of which are brokerage firms limited by shares (société anonyme). Membership is subject to approval by the ATHEX
board of directors and licensing by the HCMC.

ATHEX
members may engage in transactions through the Automated Exchange Trading System ("OASIS"), an electronic trading system, on behalf of their clients or on their own behalf.
Investment Services Firms with a share capital in excess of €5 million are also permitted to provide underwriting and market making services. Pursuant to the EU Markets in
Financial Instruments Directive

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2004/39/EC
("MiFID"), implemented in Greece in August 2007 pursuant to Law 3606/2007, investment services may be provided in Greece by Investment Services Firms established in Greece with a minimum
share capital of €1.5 million, or €5 million if engaging in underwriting, that have received an appropriate operating license from the HCMC, as well as by
European Union Investment Services Firms benefiting from a "European passport" in accordance with MiFID and Law 3606/2007. Investment services within the scope of MiFID and Law 3606/2007 include the
receipt and transfer of orders from investors to effect stock exchange transactions, the execution of such orders (or engagement in stock exchange transactions on behalf of client investors) and the
underwriting, in total or in part, of an issue of securities. In addition, MiFID has introduced new rules relating to the performance of portfolio management by Investment Services Firms. "Orders
Companies" are companies that are only allowed to receive and transfer their clients' orders to Investment Services Firms, and are prohibited from dealing in ATHEX transactions on behalf of their
client or from acting as a custodian for their clients' shares or cash. The receipt and transfer of shares by Orders Companies is governed by Law 3606/2007 and the relative decisions of the HCMC.

Stock Market Indices

The ATHEX Composite Index is the most commonly followed index in Greece. It is a market capitalization-based index that tracks the share price movement of 60
leading Greek companies. The Bank constituted approximately 14.58% of the index, as at April 21, 2008.

The
table below sets out the movement of the ATHEX Composite Index. The highs and lows are for the periods indicated and the close is on the last trading day of the period.

|Year                          |  | High    |  | Low     |  | Close  
|----------------------------- |  | ------- |  | ------- |  | -------
|1994                          |  | 1,194.6 |  | 804.4   |  | 868.9  
|1995                          |  | 992.6   |  | 787.7   |  | 914.1  
|1996                          |  | 1,026.0 |  | 870.9   |  | 933.5  
|1997                          |  | 1,794.1 |  | 933.5   |  | 1,479.6
|1998                          |  | 2,825.6 |  | 1,380.1 |  | 2,737.6
|1999                          |  | 6,355.0 |  | 2,798.2 |  | 5,535.1
|2000                          |  | 5,794.8 |  | 3,071.8 |  | 3,388.9
|2001                          |  | 3,456.0 |  | 1,997.8 |  | 2,591.6
|2002                          |  | 2,655.1 |  | 1,704.7 |  | 1,748.4
|2003                          |  | 2,326.6 |  | 1,462.2 |  | 2,263.6
|2004                          |  | 2,801.7 |  | 2,225.2 |  | 2,786,2
|2005                          |  | 3,663.9 |  | 2,786.5 |  | 3,663.9
|2006                          |  | 4,404.4 |  | 3,362.2 |  | 4,394.1
|2007                          |  | 5,346.0 |  | 4,245.2 |  | 5,178.8
|2008 (through April 30, 2008) |  | 5,207.4 |  | 3,735.5 |  | 4,214.2

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Source: ATHEX Statistical Department

Another
composite index, called the FTSE/ASE 20, was introduced in September 1997. This index is made up of the 20 largest companies by market capitalization listed on the ATHEX,
including the Bank. The Bank constituted approximately 20% of the FTSE/ASE 20 index, as at March 31, 2008. On December 9, 1999, another composite index was introduced, the FTSE/ASE
Mid 40, which is made up of 40 medium capitalization companies (i.e., the 40 largest companies by capitalization, ranking after those listed on the FTSE/ASE 20, according to Ground Rules
for the Management of the FTSE/ASE 20, FTSE/ASE Mid 40 and FTSE/ASE SmallCap Indices). On June 1, 2001, the FTSE/ASE SmallCap 80 composite index was introduced, which is made up of 80
small capitalization companies (i.e., the 80 largest companies by capitalization ranking after those listed on the FTSE/ASE 20 and FTSE/ASE Mid 40 Indices). On January 2,
2003, the FTSE/ASE 140 composite index was introduced, a new

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benchmark
comprising the constituents of the FTSE/ASE 20, 40 and Small Cap, tracking their cumulative performance exactly. On January 2, 2006, the FTSE ATHEX International Index was introduced,
a representative index for eligible companies, Greek and non-Greek, that trade on the ATHEX Common Trading Platform and are eligible for the Big Cap segment of the ATHEX.

Morgan
Stanley Capital International, also known as "MSCI", reviewed the composition of its Greek Index in view of Greece's reclassification among developed markets. The new index is
part of the matured indices' group as at May 31, 2001. The reclassification of the MSCI Greece Index to the standard MSCI Developed Market Index Series resulted in a net market capitalization
increase of 0.46% and 0.13% in the MSCI Europe Index and the MSCI Standard All Country World Free Index, respectively. The MSCI Greek Index is currently made up of 21 companies listed on the ATHEX,
including the National Bank of Greece. The weighting of the Bank to the MSCI Greece Index following the Annual Full Country Index Review as at May 2007, is currently 16.6452% (closing of
May 31, 2007).

Trading on the ATHEX

Trading on the ATHEX takes place every week from Monday to Friday, except for public holidays. The daily trading session starts at 10:30 a.m. and ends at
5:00 p.m., Athens time. The ATHEX consists of the Securities Market and Derivatives Market, while in the Securities Market the following types of securities are being traded: shares, rights on
shares, fixed income securities, certificates representing shares and any other security falling within the ambit of article 1 of Law 3371/2005. The ATHEX is further separated into six
categories based on certain criteria. On March 31, 2008, 86 companies had 90 shares listed on the Big Cap Category of the ATHEX, 163 companies had 166 shares listed
on the Medium & Small Category of the ATHEX, 26 companies had 26 shares listed on the Special Stock Exchange Characteristics Category and 20 companies had 25 shares
listed on the Under Surveillance Category.

The
trading of shares on the ATHEX is conducted through the remote placing of orders into OASIS from the ATHEX member offices on the basis of six trading methods and the different
segments of the Cash Market. Trading, depending on the period of time during which buy and sell orders can be placed into OASIS and subsequently executed, varies between 10:00 a.m. and
5:00 p.m., Athens time.

Prices
of securities of the Big Capitalization Category are eligible to +/-30% fluctuations from the closing price of the preceding trading session. Prices of securities of
the Medium and Small Category are eligible to +/-10% fluctuations from the closing price of the preceding trading session extended by a further 10%. Prices of securities of the Special
Stock Exchange Characteristics Category and the Under Surveillance Category are eligible to +/-10% fluctuations from the closing price of the preceding trading session extended by a
further 10% while the prices of securities trading in the Bonds Market fluctuate freely.

Block
trades of shares with a value exceeding €0.6 million, or representing at least 5.0% of a listed company's share capital, may be conducted through the ATHEX
by following a special procedure under which the parties involved, the number of shares to be sold and the price are pre-agreed. There is a limit to the number of parties involved in a
block trade; in particular, up to three persons may participate as either buyers or sellers, with only one person on the other side of the trade. This limitation in the number of parties involved does
not apply to block trades
made in the context of new listings or offerings of existing shares. Block trades may take place at prices that follow certain rules based on the price deviation percentage from the latest traded
price and if no such price exists, the closing price for the shares on the previous session:



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Price
limitations do not apply in the following circumstances:



For
the purposes of calculating the allowed price deviation for a block trade, all block trades effected simultaneously are aggregated in order to determine the block trade size,
provided that the selling parties do not appear as buying parties in other block trades aggregated under this rule.

All
prices of completed block trades are communicated to the ATHEX members through OASIS and published in a separate section of the Official List of the ATHEX, although such prices are
not shown as the last traded price. Trades are noted in the official register of the ATHEX, and all information on bids and offers is made available to Telerate and Reuters on a continuous basis.

The
trading lot size is one share. Prices of all securities listed on the ATHEX are published in the electronic Official List of the ATHEX.

Pursuant
to Law 3556/2007, when, as a result of a transfer of shares listed on the ATHEX, a person owns or indirectly controls a percentage equal to or in excess of 5.0%, 10.0%, 15.0%,
20.0%, 25.0%, 1/3, 50.0% or 2/3 of the voting rights of the relevant company, or such ownership or control falls below these levels, the holder is required to notify the company and the HCMC of his
holdings and percentage of voting rights in writing within three trading days. When a person holds an interest of more than 10% of the voting rights of a company whose shares are listed on the ATHEX
or is a member of the board of directors and that person's interest increases or decreases by 3% or more of the total voting rights in the company, then that person is similarly required to notify the
company and the HCMC.

Settlement, Clearance and the Central Securities Depository

Settlement of both registered and bearer shares listed on the ATHEX is effected through the Central Securities Depository. The Central Securities Depository is
responsible for settling and clearing ATHEX transactions, and holding the shares deposited with it in book entry form. In 2006, Central Securities Depository and Athens Derivatives Exchange Clearing
House merged with HELEX.

Book
entry of listed shares was introduced by virtue of Law 2396/1996, as amended. The dematerialization of Greek shares commenced in March 1999, with the market becoming fully
dematerialized in December 1999.

To
participate in the dematerialized system of securities ("SAT") each investor is required to open a dematerialization account, which is identified by a dematerialized account number
("SAT account"). A shareholder who wishes to open a SAT account can appoint one or more ATHEX members or custodian banks as authorized operators ("Operators") of its SAT account. Only Operators have
access to information concerning a SAT account such as account balances.

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The
clearance procedure through the Central Securities Depository consists of four principal stages:



The
ATHEX may invalidate a transaction if it considers it necessary for the protection of the investors, in particular in cases of fraud.

Liabilities
of investment services firms resulting from their trading activities on the ATHEX are guaranteed, up to the amount of €30,000, by the Athens Exchange Member
Guarantee Fund, to which each ATHEX member contributes, and which is operated as a separate legal
entity. In addition, another fund, the Supplementary Clearing Fund, providesif the ATHEX so deemsimmediate coverage against liabilities of ATHEX members that have forwarded
trading orders which result from delayed clearing due to the fact that shares or cash have not been delivered. The manager and custodian of the Supplementary Clearing Fund is HELEX.

Requirements for Listed Companies

Greek Law provides for a number of requirements for listed companies on the ATHEX. A significant part of such requirements is contained in Law 3340/2005 (which
implemented Directive 2003/6/EC on insider dealing and market manipulation and implementing Directives 2003/124/EC, 2003/125/EC and 2004/72/EC) and HCMC Decision No. 3/367/12.7.2005. Other
similar requirements are also contained in HCMC Decision No. 5/204/14.11.2000, Law 3016/2002 on corporate governance and Law 3556/2007.

According
to the above provisions, the listed companies on the ATHEX are required, inter alia, to publicly disclose inside information such as change of activity, execution of important
business deals, participation in mergers and acquisitions, take over bids, etc., to provide HCMC with a list of insiders, to notify HCMC on managers transactions, to issue an annual report, annual,
semi/annual and quarterly financial reports, to appoint internal auditors and draft bylaws related to the operation of the company.

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Foreign Investment

There are currently no exchange controls in Greece that would restrict the payment of dividends or other capital distributions to a holder of our ordinary shares
outside Greece, and there are currently no restrictions in Greece that would affect the right of a non-Greek holder of our ordinary shares to dispose of such shares and receive the
proceeds of such disposal outside Greece.

The Derivatives Market of the Athens Exchange

In 1997, Greek Law 2533/1997 created a derivatives exchange modeled after other European derivatives exchanges. According to this law, the Athens Derivatives
Exchange, known as "ADEX", operated
separately from the ATHEX, was organized as a corporate entity. In 2002, by virtue of Law 2937/2001, ADEX S.A. merged with Athens Securities Exchange SA ("ASE"). The Derivatives Market
of the ATHEX (the "Derivatives Market") now constitutes one of the two markets of the ATHEX.

The
Derivatives Market posted an increase in the volume of transactions in 2007. The 2007 average daily number of contracts amounted to 34,287, an increase of 19% compared to an average
volume of 28,741 contracts in 2006. The average daily trading volume in the first three months of 2008 was 45,989 contracts.



In connection with the development of the Greek capital markets, the ATHEX, in cooperation with the Athens Derivatives Exchange Clearing House (or "ADECH") and
the CSD (both currently under HELEX), have been developing the ability for investors to engage in stock lending transactions, by short selling shares listed on the ATHEX, with a simultaneous or
previous borrowing of shares to be sold by the ADECH. The stock lending from the ADECH is made through an agreement of purchase of shares with a stock reverse repo through trading of the corresponding
product.



The purchase of shares on credit (margin accounts) can be made available by members of the ATHEX to their clients/investors, using their investments as
collateral, pursuant to a written agreement between the ATHEX member and its client. The provision of credit is possible following the completion of the relevant regulatory framework,
i.e., decisions of the HCMC, in accordance with article 6 paragraph 1 of Greek Law 2843/2000, the amendments of the DSS Regulation, as well as the Act of the Governor of the Bank
of Greece, in accordance with the article 6 paragraph 2 of the Greek Law 2843/2000.

Under
Greek Law 2843/2000, the initial margin is set to 40% (minimum) of the market value of the investor's "collateral portfolio". This percentage level can be changed by act of the
Governor of the Bank of Greece after a decision by the Board of Directors of the HCMC. It should be noticed that the ATHEX members have the flexibility to require higher initial and maintenance
margins provided that the investor is given prior notice and an express provision is included in the relevant contract.

Pursuant
to Act No. 2474/31.5.2001, as amended by Acts No. 2567/23.11.05 and No. 2599/2.11.2007, of the Governor of the Bank of Greece, the maintenance margin on
brokerage margin accounts is set at 30% of the market value of the investor's "collateral portfolio".

Margin
accounts contribute to the improvement of the liquidity of the market. They enable the investor to buy new shares by offering as "collateral" the shares that composed his or her
initial portfolio. Investors generally use margin accounts to increase their purchasing power.

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Law
3301/2004 transposed into Greek law the Collateral Directive (Directive 2002/47/EC), thereby facilitating the use of securities listed on the ATHEX as collateral for entities falling
within its scope, in particular simplifying the procedure for the enforcement of such collateral.

D.    Selling Shareholders

Not applicable.

E.    Dilution

Not applicable.

F.     Expenses of the Issue

Not applicable.

ITEM 10    ADDITIONAL INFORMATION

A.    Share Capital

Not applicable.

B.    Memorandum and Articles of Association

Our Articles of Association (and English translation thereof), as amended on May 16, 2008, are included as Exhibit 1 to this Annual Report.



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160

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161

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C.    Material Contracts

NBG and its subsidiaries are party to various contracts in the ordinary course of business. For the years ended December 31, 2006 and 2007, there have been
no material contracts entered into outside the ordinary course of business apart from the following.

As
described in Note 4 to the Consolidated Financial Statements, on April 3, 2006, the Bank entered into an agreement with Fiba Holding, Fina Holding, Girisim Factoring and
Fiba Factoring to acquire 46% of the ordinary shares of Finansbank, together with 100% of Finansbank's founder shares. The agreed aggregate purchase price was approximately US$2,774 million in
cash, subject to an

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adjustment
in respect of the book value of the assets and liabilities of Finansbank as at the date on which closing would occur.

Closing
of the transaction occurred once certain conditions precedent had been fully satisfied or waived in accordance with the agreement. These included (i) the approval of the
central bank of Turkey ("BRSA"), (ii) the approval of the TCB, (iii) the approval of the Bank of Greece, (iv) the completion of the sale of the international operations to Fiba
Holding and obtaining of all necessary relevant regulatory approvals for that sale and (v) certain other clearances related to the restructuring of the Finansbank group, which were to take
place on or prior to closing (as described further below). Furthermore, the Bank was not obliged to conclude the transaction in the event of a material adverse change, which was defined to include
changes after the date of the agreement which were, or were reasonably likely to, result in an impairment or reduction in the Finansbank group's consolidated net asset value and/or the group's
consolidated annual pre-tax net income of more than 30%, as well as a general disruption in the financial and banking markets in Turkey or in leading international financial markets or
suspension or material limitation of trading in the shares of Finansbank on stock exchanges or the imposition of currency exchange controls in Turkey or elsewhere or the outbreak or escalation of
hostilities and/or act of terrorism or any other calamity or crisis.

In
the period between signing and closing, the Bank enjoyed certain access and information rights in respect of Finansbank. The Fiba Sellers were obliged to cause Finansbank not to take
certain actions outside the ordinary course of its business without the consent of the Bank.

Prior
to closing, Finansbank sold to Fiba Holding its shares in Finans International Holding N.V. ("Finans International") and Finansbank Romania S.A. for
US$600 million. Finans International sold to Finansbank its shareholding in Finansbank (Malta) Ltd., at a price of US$48 million.

Under
the terms of the agreement, the Fiba Sellers have made certain representations and warranties to the Bank in relation to themselves and Finansbank. The areas which the
representations and warranties cover included (i) ownership of the shares in Finansbank, (ii) the financial statements of Finansbank, (iii) absence of material changes since
December 31, 2005, (iv) tangible property, (v) intellectual property, (vi) information technology, (vii) taxes, (viii) litigation and claims,
(ix) compliance with laws, (x) employees, (xi) material contracts, (xii) third party assurances and related party arrangements and (xiii) registration of charges.
The representations and warranties were expressed to be true as at the date of signing and (subject to certain exceptions) the date of closing.

On
the completion of the Acquisition, the Bank was obliged to make a mandatory tender offer for that part of the shares in Finansbank and Finans Leasing, which it has not acquired
pursuant to the agreement. The Fiba Sellers have agreed not to tender any shares which they may then hold in Finansbank or Finans Leasing in response to such offer. However, had the Bank not acquired
sufficient shares in the tender offer to hold at least 50% plus one share of the ordinary shares in Finansbank, the Fiba Sellers should have tendered sufficient shares to bring the Bank's holding up
to this level.

The
Fiba Sellers have entered into a non-compete covenant with the Bank for three years from the closing date which will, subject to certain exceptions, restrict the
provision of banking and financial services in Turkey by the Fiba Sellers and their affiliates.

The
Bank and Fiba Holding, Girisim Factoring and Fiba Factoring (the "Fiba Shareholders") also entered into a shareholders' agreement, which sets out the terms and conditions for their
cooperation as shareholders in Finansbank. The agreement restricts share transfers by the Fiba Shareholders from the closing date of the Acquisition for a four-year period, following which
period the Bank and, where applicable, its affiliates (the "Bank Shareholders") and the Fiba Shareholders will benefit from a right of first offer for sales of the other's shares in Finansbank owned
as of the date of any such sale (the "Relevant Shares"). The Bank also benefited from a call option for a period of one month following the consummation of the Tender Offer, enabling the Bank to
acquire from the Fiba Shareholders

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sufficient
shares such that the Bank holds 50% plus one ordinary share in Finansbank. In addition, the Bank holds a call option to purchase from Fiba Holding and, in certain circumstances, the other
Fiba Shareholders, and the Fiba Shareholders hold a put option to sell to the Bank, Relevant Shares in certain circumstances including at least 3% and up to all of the share capital of Finansbank
owned by the Fiba shareholders at a price and pursuant to transfer terms determined by reference to the provisions of the shareholders' agreement, for the period following the second anniversary of
the closing and for two years thereafter at a multiple of between two and a half and three and a half times the book value of the Finansbank Acquired Businesses at that time, depending upon the
satisfaction of performance-based criteria.

The
shareholders' agreement also governs how the Bank Shareholders and the Fiba Shareholders vote their shares. Pursuant to the agreement, the parties have agreed to ensure that a
minimum of two Directors nominated by Fiba Holding (out of a minimum of seven directors) are appointed to the
Board of Directors of Finansbank for so long as the Fiba Shareholders hold Relevant Shares representing at least 5% of the ordinary shares of Finansbank. The Fiba Shareholders have agreed to vote
their shares in accordance with the terms of the shareholders' agreement.

As
described in Note 4 to the Consolidated Financial Statements, on March 29, 2007, the Bank entered into an agreement (the "IFC Agreement") with the International Finance
Corporation ("IFC") whereby IFC purchased 5% of the ordinary shares of Finansbank (the "IFC Shares") from the Bank at the date of the agreement. The agreed purchase price for the IFC Shares was
US$259.2 million in cash. The agreement included an option for IFC to sell its shares back to NBG (the "put option") and another option for NBG to buy the shares from IFC (the "call option").
Furthermore IFC can only sell those shares to a third party with a written consent from NBG.

At
any time during the put option period (the period commencing from the date that the financial statements of the financial year ending after the fifth anniversary of the signing of the
IFC Agreement have been delivered to the IFC but not later than six months after the respective year-end, and ending on the date the IFC ceases to hold any shares in Finansbank), the IFC
shall have the right to sell and the Bank shall be obligated to purchase all or part of the IFC Shares at the higher of fair market value per share (as determined by one of nine reputable investment
banks designated by the IFC and the Bank acting jointly) and the compounded share price per share, i.e. the aggregate amount corresponding to the cost to the IFC for acquiring the IFC Shares
compounded semi-annually at the rate of six-month LIBOR plus 25 basis points divided by the number of shares.

At
any time during the call option period (the period commencing from the date that the audited financial statements of the financial year ending after the seventh anniversary of the
signing of the IFC Agreement have been delivered to the IFC and ending on the date the IFC ceases to hold any shares in the Finansbank), the Bank shall have the right to purchase and IFC shall be
obligated to sell all or part of the IFC Shares at the higher of fair market value per share (as determined by one of nine reputable investment banks designated by the IFC and the Bank acting jointly)
and the compounded share price per share, i.e. the aggregate amount corresponding to the cost to the IFC for acquiring the IFC Shares compounded semi-annually at the rate of
six-month LIBOR plus 25 basis points divided by the number of shares.

D.    Exchange Controls

All forms of capital movement in and out of Greece have been liberalized pursuant to Presidential Decrees 96/1993 and 104/1994 (implementing Directives
1988/361/EEC and 1992/122/EEC) and corresponding acts of the Governor of the Bank of Greece. Foreign investors may purchase securities listed on the ATHEX, as well as Hellenic Republic bonds and
treasury bills. Repatriation of capital and dividends and any other income on securities is fully liberalized subject to compliance with certain reporting procedures and requirements.

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Custody of Depositary Receipts

Depositary receipts may be placed in the custody of a bank, a securities company or a brokerage company, operating legally in Greece, as custodian on behalf of a
shareholder. Banks and securities companies must issue a receipt to each shareholder for any securities in their custody.

E.    Taxation

The following is a summary of material U.S. federal income tax consequences of the purchase, ownership and disposition of shares or ADRs by a U.S. Holder. For the
purposes of this summary, a "U.S. Holder" is a beneficial owner of shares or ADRs that is, for U.S. federal income tax purposes, (i) a citizen of or an individual resident in the United States,
(ii) a corporation or other entity treated as a corporation for U.S. federal income tax purposes, created in or organized under the laws of the United States or any state thereof or the
District of Columbia, (iii) an estate, the income of which is subject to U.S. federal income taxation regardless of its source, or (iv) a trust, if (x) a court within the United
States is able to exercise primary supervision over its administration and (y) one or more U.S. persons have the authority to control all of the substantial decisions of such trust. If a
partnership holds shares or ADRs, the consequences to a partner will generally depend upon the status of the partner and the activities of the partnership. A partner of a partnership holding shares or
ADRs should consult its tax advisor regarding the associated tax consequences. The summary does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a
decision to purchase, own or dispose of shares or ADRs. In particular, this summary deals only with U.S. Holders that will hold shares or ADRs as capital assets and does not address the tax treatment
of special classes of U.S. Holders, such as financial institutions, tax-exempt entities, insurance companies, retirement plans, persons holding shares or ADRs as part of a "straddle" or as
part of a "synthetic security" or a hedging or conversion transaction or other integrated transaction, real estate investment trusts, regulated investment companies, partnerships,
pass-through entities or persons who hold through partnerships or other pass-through entities, U.S. expatriates, persons subject to the alternative minimum tax, dealers or
traders in securities, currencies or notional principal contracts, persons that own (or are deemed to own for U.S. federal income tax purposes) 10% or more of the voting stock of the Bank, holders who
hold shares or ADRs in connection with a trade, profession or vocation carried on in Greece (whether through a branch, agency or otherwise) and holders whose "functional currency" is not the
U.S. dollar. Further, this discussion does not address any tax consequences applicable to holders of equity interests in a holder of shares or ADRs. This summary is based upon current U.S.
federal income tax law, including the U.S. Internal Revenue Code of 1986 (the "Code"), its legislative history, existing, temporary and proposed regulations thereunder, published rulings and court
decisions, all of which are subject to change (possibly with retroactive effect); and the Convention Between the United States of America and the Kingdom of Greece (now the Hellenic
Republic) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, with effect from December 30, 1953.

Prospective
purchasers should consult their tax advisors as to the consequences under U.S. federal, estate, gift, state, local and applicable foreign tax laws of the purchase, ownership
and disposition of shares and ADRs.

Holders
of ADRs will be treated for U.S. federal income tax purposes as owners of the shares underlying the ADRs. Accordingly, except as noted, the U.S. federal income tax consequences
discussed below apply equally to holders of ADRs and shares.

Dividends

Under current Greek tax law no Greek withholding taxes will be imposed on the payment of dividends to U.S. Holders of shares or ADRs. The gross amount of any
distributions paid by the Bank

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to
a U.S. Holder that are actually or constructively received by the U.S. Holder will generally be subject to U.S. federal income tax as foreign source dividend income to the extent paid out of
current or accumulated earnings and profits of the Bank, as determined for U.S. federal income tax purposes. Such dividends will not be eligible for the dividends received deduction allowed to
corporations. Subject to the discussion below under this Item 10.E, "TaxationPassive Foreign Investment
Company Status", to the extent that an amount received by a U.S. Holder exceeds the allocable share of the Bank's current and accumulated earnings and profits, such excess will
be applied first to reduce such U.S. Holder's tax basis in its shares or ADRs and then, to the extent such distribution exceeds such U.S. Holder's tax basis, it will be treated as capital gain.

The
Bank does not maintain calculations of its earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will generally be
treated as a dividend. The amount of any distribution of property other than cash will be the fair market value of that property on the date of the distribution.

Certain
dividends received by individual U.S. Holders before January 1, 2011, will be subject to a maximum income tax rate of 15%. This reduced income tax rate is only applicable
to dividends paid by "qualified corporations" (which term excludes passive foreign investment companies, as defined below) and only with respect to shares or ADRs held for a minimum holding period
(generally, 61 days during the 121-day period beginning 60 days before the ex-dividend date). The Bank expects to be considered a qualified corporation for this
purpose. U.S. Holders should consult
their tax advisors regarding the availability of the reduced income tax rate on dividends under their particular circumstances.

The
gross amount of dividends paid in euro will be included in the income of such U.S. Holder in a U.S. dollar amount calculated by reference to the spot exchange rate in effect
on the day the dividends are received by the U.S. Holder (or, in the case of the ADRs, by The Bank of New York, in its capacity as depositary) regardless of whether the payment is in fact converted
into U.S. dollars. A U.S. Holder will have a basis in any euro distributed equal to their U.S. dollar value on the date they are received by the U.S. Holder (or, in the case of the ADRs, by The
Bank of New York in its capacity as depositary). Any gain or loss recognized upon a subsequent disposition of euro will generally be ordinary income or loss. If euro are converted into
U.S. dollars on the date of the receipt, the U.S. Holder should not be required to recognize any foreign currency gain or loss in respect of the receipt of euro as dividends. Dividends will be
treated as foreign source income for U.S. foreign tax credit limitation purposes. The limitation on foreign taxes eligible for the U.S. foreign tax credit is calculated separately with respect to
specific classes of income. Income received with respect to shares or ADRs generally will constitute "passive category income" or "general category income". The amount of the qualified dividend income
paid by the Bank to a U.S. Holder that is subject to the reduced dividend income tax rate that is taken into account for purposes of calculating the U.S. Holder's U.S. foreign tax credit limitation
must be reduced by the "rate differential portion" of such dividend. The rules relating to foreign tax credits and the timing thereof are complex. U.S. Holders should consult their tax advisors
regarding the availability of foreign tax credits under their particular circumstances.

Sale or Exchange of Shares or ADRs

Subject to the discussion below under this Item 10.E, "TaxationPassive
Foreign Investment Company Status", gain or loss realized by a U.S. Holder on the sale or other disposition of shares or ADRs will be subject to U.S. federal income taxation as
capital gain or loss in an amount equal to the difference between the U.S. Holder's adjusted tax basis in the shares or ADRs and the amount realized on the disposition. Such gain or loss generally
will be treated as long-term capital gain or loss if the shares or ADRs have been held for more than one year. Capital gains of individuals derived from capital assets held for more than
one year are eligible for reduced rates of taxation. The deductibility of capital losses is subject to significant limitations. Any gain or loss realized will generally be treated as derived from U.S.
sources.

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The
surrender of ADRs in exchange for shares (or vice versa) will not be a taxable event for U.S. federal income tax purposes and U.S. Holders will not recognize any gain or loss upon
such an exchange.

If
a U.S. Holder receives any foreign currency on the sale, exchange or disposition of shares, such U.S. Holder generally will realize an amount equal to the U.S. dollar value of
such foreign currency on the settlement date of such sale, exchange or disposition if (i) such U.S. Holder is a cash basis or electing accrual basis taxpayer and the shares are treated as being
"traded on an established securities market" or (ii) such settlement date is also the date of such sale, exchange or disposition. If the foreign currency so received is converted to
U.S. dollars on the settlement date, such U.S. Holder should not recognize foreign currency gain or loss on such conversion. If the foreign currency so received is not converted into
U.S. dollars on the settlement date, such U.S. Holder will have a basis in such foreign currency equal to its U.S. dollar value on the settlement date. Any gain or loss on a subsequent
conversion or other disposition of such foreign currency generally will be treated as ordinary income or loss to such U.S. Holder and generally will be income or loss from sources within the United
States for U.S. foreign tax purposes. Each U.S. Holder should consult its tax advisor regarding the U.S. federal income tax consequences of receiving foreign currency from the sale, exchange or other
disposition of shares.

U.S. Information Reporting and Backup Withholding

Non-corporate U.S. Holders may be subject to the information reporting requirements of the Code, as well as to backup withholding on the payment of
dividends on, and the proceeds received from the disposition of, shares or ADRs. Backup withholding may apply if a U.S. Holder (i) fails to furnish its taxpayer identification number ("TIN"),
which, in the case of an individual, is his or her social security number; (ii) fails to provide certification of exempt status; (iii) is notified by the Internal Revenue Service ("IRS")
that he or she has failed properly to report payments of interest and dividends; (iv) under certain circumstances, fails to certify, under penalty of perjury, that he or she has furnished a
correct TIN or the Bank has been notified by the IRS that such U.S. Holder is subject to backup withholding for failure to furnish a correct TIN; or (v) otherwise fails to comply with the
applicable requirements of the backup withholding rules.

U.S.
Holders should consult their tax advisors regarding their qualification for exemption from backup withholding and the procedure for obtaining such an exemption, if applicable. The
amount withheld from a payment to a U.S. Holder under the backup withholding rules generally will be allowed as a credit against such holder's U.S. federal income tax liability and may entitle such
holder to a refund, provided that the required information is furnished to the IRS.

Passive Foreign Investment Company Status

The foregoing discussion of dividends and capital gains assumes that the Bank is not a passive foreign investment company (a "PFIC"), for U.S. federal income tax
purposes. Based upon (i) certain U.S. Treasury Regulations (the "Regulations") and (ii) the regulatory status of the Bank under local laws, its banking activities performed in the
ordinary course of business (including lending, accepting deposits and depositing money in other banks), the proportion of its income derived from activities that are "bona fide" banking activities
for U.S. federal income tax purposes and its securities activities performed in the ordinary course of business (including selling debt instruments to customers in a dealer capacity), the Bank
believes that it was not a PFIC for 2007 (the latest period for which the determination can be made) and, based further on its present regulatory status under local laws, the present nature of its
activities, and the present composition of its assets and sources of income, the Bank does not expect to be a PFIC for the current year or for any future years. However, because PFIC status is a
factual determination made annually and because there are uncertainties in the

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application
of the relevant rules, there can be no assurances that the Bank will not be considered to be a PFIC for any particular year.

If
for any year in which a U.S. Holder held shares or ADRs, the Bank were to qualify as a PFIC, the U.S. Holder would be subject to special rules with respect to (i) any gain
realized on the sale or other disposition (including a pledge) of the shares or ADRs and (ii) any "excess distribution" by the Bank to the U.S. Holder (generally, any distributions to the U.S.
Holder in respect of the shares or ADRs during a single taxable year to the extent the distributions exceed 125% of the average annual distributions received by the U.S. Holder in respect of the
shares or ADRs during the three preceding taxable years or, if shorter, the U.S. Holder's holding period for the shares or ADRs). Under these rules, (i) the gain or excess distribution would be
allocated ratably over the U.S. Holder's holding period for the shares or ADRs, (ii) the amount allocated to the taxable year in which the gain or excess distribution was realized would be
taxable as ordinary income, (iii) the amount allocated to each prior year, with certain exceptions, would be subject to tax at the highest tax rate in effect for that year and (iv) the
interest charge generally applicable to underpayments of tax would be imposed in respect of the tax attributable to each such year.

U.S.
Holders can avoid the interest charge by making a mark to market election with respect to the shares and ADRs, provided that the shares are "marketable" within the meaning of the
Regulations. The shares and ADRs will not be considered "marketable" for purposes of this election unless the exchange or market on which the shares are regularly traded is a qualified stock exchange
or other market. Under the Regulations, a stock exchange is a "qualified stock exchange" if it is either one of the recognized U.S. stock exchanges, such as the New York Stock Exchange, or,
alternatively, a foreign stock exchange, such as the ATHEX, may constitute a qualified exchange if it meets certain trading, listing, financial disclosure and other requirements set forth in the
Regulations. The mark to market election will remain in effect unless the IRS consents to revocation, or until the shares cease to be marketable. A U.S. Holder that makes a mark to market election
generally will, subject to certain limitations, be required to take into account the difference, if any, between the fair market value and the adjusted tax basis of its ADRs or shares, at the end of a
taxable year, as ordinary income (or,
subject to certain limitations, ordinary loss) in calculating its income for such year. In the case of a mark to market election, gains from an actual sale or other disposition of the ADRs or shares
will be treated as ordinary income, and any losses incurred on a sale or other disposition of the ADRs or shares will be treated as ordinary loss to the extent of any net mark to market gains for
prior years.

Special
rules apply with respect to the calculation of the amount of the foreign tax credit with respect to excess distributions by a PFIC. If the shares or ADRs constitute equity
interests in a PFIC, a U.S. Holder will be required to make an annual return on IRS Form 8621 regarding distributions received with respect to shares or ADRs and any gain realized on the
disposition (including a pledge) of shares or ADRs.

Prospective
investors should consult their tax advisors as to the potential application of the PFIC rules as well as the impact of any proposed legislation that could affect them.



A U.S. Holder that participates in any "reportable transaction" (as defined in the Regulations) must attach to its U.S. federal income tax return a disclosure
statement on IRS Form 8886. U.S. Holders are urged to consult their tax advisor as to the possible obligation to file IRS Form 8886 with respect to the sale, exchange or other
disposition of any foreign currency received as a dividend on, or as proceeds from the sale, exchange or other disposition of shares or ADRs.

The information set out above is a summary only and U.S. and other taxation may change from time to time. Prospective investors should consult their tax advisors
as to the consequences of the

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purchase, ownership and disposition of shares and ADRs including, in particular, the effects of the tax laws of any other jurisdiction.

F.     Dividends and Paying Agents

Not applicable.

G.    Statements by Experts

Not applicable.

H.    Documents on Display

NBG has filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form F-1 (which, together with all
amendments, exhibits and schedules thereto, is referred to as the "Registration Statement") under the Securities Act, with respect to its ordinary shares offered in the United States. NBG is subject
to the reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), applicable to foreign private issuers, and in accordance therewith, is required to file
reports, including annual reports on Form 20-F, and other information with the SEC. The Registration Statement, including the exhibits and schedules thereto, its annual reports on
Form 20-F, and reports and other information filed by NBG with the SEC may be obtained, upon written request, from The Bank of New York, as depositary, at its Corporate Trust Office
located at 101 Barclay Street, New York, New York 10286. Such reports and other information can be inspected without charge and copied at prescribed rates at the public reference facility maintained
by the SEC at 100 F Street, N.W., Washington, D.C. 20549, and at the regional offices of the SEC located at 233 Broadway, New York, New York 10279 and the Northwest Atrium Center, 500 West Madison
Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material and any part thereof will also be available by mail from the Public Reference Section of the SEC, at
100 F Street, N.W., Washington, D.C. 20549, at prescribed rates. Also, certain reports and other information concerning NBG will be available for inspection at the offices of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005.

NBG
will furnish The Bank of New York, as depositary, with annual reports which will include a description of its business and annual audited consolidated financial statements prepared
in accordance with U.S. GAAP. The Bank of New York has agreed that, upon receipt of such reports, it will promptly mail such reports to all record holders of ADRs. NBG will also furnish to The
Bank of New York summaries in English or an English version of all notices of shareholders' meetings and other reports and communications that are made generally available to shareholders of NBG. The
Bank of New York has agreed that it will, to the extent permitted by law, arrange for the mailing of such documents to record holders of ADRs.

NBG,
as a foreign private issuer, is exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements to shareholders and NBG officers, directors
and principal shareholders will be exempt from the "short-swing profits" reporting and liability provisions contained in Section 16 of the Exchange Act and the rules promulgated thereunder.

I.     Subsidiary Information

Not applicable.

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J.     Relationship with the Hellenic Republic

Shareholding

The Hellenic Republic no longer owns any portion of the issued share capital of the Bank; certain pension funds (most of whose boards of directors are appointed
by the Hellenic Republic) own approximately 16.6% of the issued shares.

The
remaining shares are held by institutional and retail investors in the Hellenic Republic and institutional investors internationally. See Item 3.D,
"Risk FactorsState-related entities may have an important influence on the Bank".

Hellenic Republic as Shareholder

Not applicable.

Hellenic Republic as Customer

The Hellenic Republic, including state-related entities, is a large customer of the Bank in terms of loans and deposits. At December 31, 2007,
approximately 4.7% of the Bank's outstanding gross loans were to the Hellenic Republic and state-related entities, and approximately 3.7% of the Bank's deposits were from the Hellenic Republic and
state-related entities. The commercial relationship between the Bank, the Hellenic Republic and other state-owned enterprises is conducted on a normal "arm's length" basis. The Group's senior
management believes that the commercially-oriented strategy currently being implemented will continue for the foreseeable future.

ITEM 11    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

In recent years, we have expanded our trading activities by engaging into a wide variety of financial products in order to enhance profitability and service our
clientele. This involves the undertaking of Market Risk, which we seek to identify, measure and manage effectively through a framework of principles, measurement processes and an adequate limit
structure.

Based
on our positions, the most significant types of Market Risk that we distinguish are the following: Interest Rate Risk, Equity Risk and Foreign Exchange Risk.



Interest Rate Risk is the risk related to the potential loss that might incur on the Bank's portfolio due to adverse movements in the interest rates. In our case,
the interest rate risk stems from the trading and AFS Bond portfolios and the interest rate exchange-traded and OTC derivatives.

More
specifically, as we are the principal market maker in Greek Government bonds (we have been ranked first among the 22 prime dealers of the Electronic Secondary Securities Market
("HDAT") for the past seven years), we retain a substantial portfolio of sovereign debt and we carry a moderate portfolio of Greek and international investment grade corporate issuers. As of
December 31, 2007, 87% of our total bond portfolio comprised Greek Government bonds, of which 70% were fixed.

In
order to provide an economic hedge for the fixed interest rate exposure arising from our position in fixed rate Greek Government bonds, we enter into future contracts relating to
short-, medium- and long-term German government bonds. To a lesser extent, we maintain positions on bond and interest rate futures for speculative purposes.

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We
are also active in the swap market, engaging in straightforward as well as more sophisticated deals for hedging and proprietary purposes. As a means of hedging, we convert the fixed
rate risk into floating rate risk in order to reduce earnings volatility.



Equity Risk is the risk related to the potential loss that might occur due to adverse movements in the prices of stocks and equity indices. The Bank holds a
portfolio of stocks, the majority of which are traded on the ATHEX, and retains positions on stock and equity index derivatives traded in Greek and international exchanges. Our cash portfolio
comprises trading (i.e. short-term) and Available for

Sale
("AFS") (i.e. long-term) positions. Our portfolio of equity derivatives primarily serves as a mechanism to hedge the equity risk arising from our cash position
and from the equity-linked products given to our clientele. In the same context and to a lesser extent, we enter into OTC equity transactions for pure trading and hedging purposes.



Foreign Exchange Risk is the risk related to the potential loss the Bank may suffer due to adverse movements in foreign exchange prices. The foreign exchange risk
derives from the Bank's Open Currency Position ("OCP"), which mostly stems from the transactions of our Treasury Division in foreign currency (i.e. foreign exchange ("FX") spot and forward
transactions). The OCP is distinguished between Trading OCP and Structural OCP. The Structural OCP contains all the Bank's investment assets and liabilities in foreign currency (i.e. loans,
deposits, etc) along with the FX transactions performed by our Treasury Division.

The
Bank trades in all major currencies holding mainly short-term positions for trading purposes and for servicing our institutional, corporate, domestic and international
clientele. According to the Bank's strategy, the end of day open currency position should comply with the relevant limits set by the Treasury Division (i.e. the overnight, intra-day
and stop loss limits).

Measurement Method

The Bank estimates the market risk of the trading and AFS portfolios by applying a Value-at-Risk ("VaR") methodology. VaR is a measure of
the maximum potential change in value of a portfolio of financial instruments with a predefined confidence interval over a given time horizon. We have adopted the variance-covariance methodology with
a 99% confidence interval and 1-day holding period. The VaR is calculated on a daily basis for the Bank's trading and AFS positions, along with the VaR per risk type (interest rate, equity
and FX risk). The model and the VaR calculations have been thoroughly examined and approved by the Bank of Greece and our Internal Audit Division, as well as by an external auditor. Moreover, our
Internal Audit Division conducts annual assessments of the model and reports the results to the appropriate supervisory authority.

The
calculations are used for both internal and regulatory purposes. For internal use, the volatilities and correlations of the risk factors are computed with the Exponentially Weighted
Moving Average Model ("EWMA") and a decay factor l = 0.94. The model is accepted worldwide and was developed by RiskMetrics/JP Morgan.
The calculations derive from 75 daily observations, where the latest observations carry the highest weight in the volatility estimate. For regulatory purposes, the calculations refer only to the
Trading Book and the correlations and volatilities are based on 252 equally weighted daily observations.

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Total VaR

Interest Rate VaR

Equity VaR

FX VaR2007

2006

2007

2006

2007

2006

2007

2006(Amounts in million EUR)Average

3.3

5.1

2.7

3.9

1.9

3.4

0.6

0.3Max

6.6

10.6

5.3

9.0

3.5

8.2

2.0

1.5Min

1.7

1.5

1.5

1.2

0.9

0.6

0.1

0.1Year End

5.9

2.2

4.9

1.9

2.5

0.9

1.1

0.1


Also, the VaR for internal use is calculated with the Historical Simulation approach for comparative reasons. The calculations are based on 252
daily observations for each risk factor.

The
VaR reports are sent to the Senior Managers of each Business Unit, the GRMD and the responsible members of the Internal Audit Division and the Board of Directors each receive copies
of all VaR reports.

Limitations of our VaR model

We are confident in our market risk measurement method and the implemented system which has been approved by both the Bank of Greece and our auditors.

However,
our VaR model is based on certain theoretical assumptions, which under extreme market conditions might not capture the maximum loss the Bank will suffer. The restrictions of our
methodology are summarized below:



To
enhance the predictability of our VaR model and minimize the effect of the aforementioned limitations, we perform stress testing on a weekly basis.

Limits Framework

For the effective management of Market Risk, the GRMD has established a framework of VaR limits. These limits are based on the desired level of risk the Bank is
willing to take in accordance with the decisions of its management bodies, the Bank's regulatory capital and the business activities of the Treasury Division.

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The
VaR limits refer to the Bank's trading and the AFS portfolios and are set on both total VaR level and on per type of risk level (i.e. Interest Rate VaR, Equity VaR & FX
VaR limits).

The
Treasury Division is responsible for maintaining those limits, whereas the GRMD monitors them on a daily basis. According to our Market Risk Policy, the limits are reviewed every
year, or earlier if necessary (e.g. due to the expansion of the Bank's trading activities). Also, there are formal procedures in place to anticipate plausible limit bridges.

Backtesting

We perform backtesting in order to verify the predictive power of our VaR model. The calculations refer only to the Bank's trading positions, in accordance with
the guidelines from the Bank of Greece, and involve the comparison of the "hypothetical" daily gains and losses with the respective estimates of our VaR model used for regulatory purposes.

In
the case where the backtesting result exceeds VaR, the model has underestimated the potential loss and is deemed to have failed. Backtesting is conducted on a daily basis and any
excess is immediately reported to the Bank of Greece. Additionally, all the results are disclosed to the Bank of Greece on a quarterly basis.

Stress Testing

The daily VaR estimations refer to "normal" market conditions. However, it is necessary to carry out supplementary analysis in order to capture the potential loss
that might incur under extreme and unusual circumstances in the financial markets. Thus, the GRMD conducts stress testing for various risk factors (e.g. interest rates, stock index prices,
exchange rates) on a weekly basis through the simulation of relevant scenarios for a given risk factor. These scenarios are in compliance with the IMF guidelines and are approved by our regulatory
authorities.

The
relevant scenarios are presented in the table below:

INTEREST RATES

|Scenario |  | Description          |  | 0-3 Months |  | 3 Months-
5 Years |  | >5 Years
|-------- |  | -------------------- |  | ---------- |  | ----------------- |  | --------
|1        |  | Parallel Curve Shift |  | +200 bp    |  | +200 bp           |  | +200 bp 
|2        |  | Parallel Curve Shift |  | -200 bp    |  | -200 bp           |  | -200 bp 
|3        |  | Steepening           |  | 0 bp       |  | +100 bp           |  | +200 bp 
|4        |  | Flattening           |  | +200 bp    |  | +100 bp           |  | 0 bp    

STOCK MARKET INDICES

|Scenario |  | Description         
|-------- |  | --------------------
|1        |  | -30% for all indices

FX RATES

|Scenario |  | Description            
|-------- |  | -----------------------
|1        |  | EUR depreciation by 30%

Stress testing is performed on both the trading and AFS portfolios, as well as separately on the positions of the Trading Book.

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Emerging Markets Risk

We operate in Turkey, Bulgaria, Albania, FYROM, Romania, Serbia and Egypt, all of which are considered emerging markets.

In
order to monitor Market Risk on a Group level, during 2007, Finansbank implemented the VaR measurement system "Risk Watch" created by "Algorithmics". The fourth quarter of 2007 was a
testing period of daily operations and review of the VaR estimation by Finansbank, while from January 1, 2008, the Risk Watch system is the official method for calculating VaR on its portfolio.
Note that Finansbank's VaR (99%, 1 day) for the trading and available for sale portfolio varied in 2007 from €1.1 million to €8.1 million, with an
average rate estimation for the year of €2.7 million. On December 31, 2007, Finansbank's VaR was estimated to €4.5 million.

Additionally,
we conduct stress testing on the positions held in the Trading, AFS and Investment portfolios of Finansbank on a quarterly basis, in order to estimate the potential loss
for NBG due to extreme movements in Turkey's market conditions.

The
rest of our subsidiaries individually do not bear significant Market Risk. However, their positions are monitored by our Group Risk Management and Treasury Divisions apart from UBB,
which is in the process of implementing a VaR system.

Counterparty Risk

Counterparty risk is the risk arising from an obligor's failure to meet its contractual obligations. This risk includes:



Counterparty Risk Limits Framework

We have developed a methodology for determining and allocating counterparty limits for interbank market transactions based on counterparty's creditworthiness.

Eligible
counterparties are those financial institutions that are assigned by Moody's and Standard & Poor's credit ratings from Aaa/AAA to Baa/BBB-.
Non-rated banks are assigned credit rating by the Bank's internal model.

The
Risk Management Division is responsible for:



It
is our policy not to allow limit breaches. Counterparty limits are subject to annual revision.

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Sensitivity Analysis

We made certain assumptions in calculating fair values for presentation in the U.S. GAAP Financial Statements. These assumptions are stated in
Note 36 to the U.S. GAAP Financial Statements and include the notion that assets and liabilities that reprice or mature within a relatively short period of time have a fair value that
approximates their carrying amount. However, for the purposes of the sensitivity analysis below, we included assets and liabilities that mature or reprice within a relatively short period of time and
calculated the effect on the fair value of all positions. The effect that financial instruments, which reprice frequently or have short periods to maturity, had on the revised fair values was
immaterial.

Interest rate sensitivity analysis

We performed a sensitivity analysis to estimate the impact of certain potential changes in interest rates on the fair value of financial instruments held as at
December 31, 2007. The analysis below was performed based on the following assumptions:

Balance sheet items (except Derivative financial instruments)



Derivative financial instruments



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|            |                                                 | December 31, 2007 |            | Market Value Change |            | Market Value Change |         
|----------- | ----------------------------------------------- | ----------------- | ---------- | ------------------- | ---------- | ------------------- | --------
|
|
|Assets      |                                                 |                   |            |                     |            |                     |         
|            | Deposits with central bank                      |                   | 2,372,145  |                     | 2,372,145  |                     | (1,680  
|            | Securities purchased under agreements to resell |                   | 1,415,688  |                     | 1,415,688  |                     | (11,601 
|            | Interest bearing deposits with banks            |                   | 1,777,422  |                     | 1,777,446  |                     | (3,014  
|            | Money market investments                        |                   | 254,034    |                     | 254,034    |                     | 564     
|            | Debt and equity trading assets                  |                   | 12,371,326 |                     | 12,371,326 |                     | (104,495
|            | Derivative assets                               |                   | 334,783    |                     | 334,783    |                     | 411,927 
|            | Available-for-sale securities at fair value     |                   | 4,550,227  |                     | 4,550,227  |                     | (73,689 
|            | Net loans                                       |                   | 54,427,540 |                     | 54,943,425 |                     | (478,657
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate sensitive assets            |                   | 77,503,165 |                     | 78,019,074 |                     | (260,645
|            |                                                 |                   |            |                     |            |                     |         
|Liabilities |                                                 |                   |            |                     |            |                     |         
|            | Deposits                                        |                   | 66,872,882 |                     | 66,822,922 |                     | 106,746 
|            | Securities sold under agreements to repurchase  |                   | 3,509,525  |                     | 3,509,397  |                     | 5,611   
|            | Other borrowed funds                            |                   | 473,666    |                     | 471,706    |                     | 3,890   
|            | Derivative liabilities                          |                   | 1,071,806  |                     | 1,071,806  |                     | (248,499
|            | Long term debt                                  |                   | 5,425,319  |                     | 5,321,106  |                     | 52,229  
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate sensitive liabilities       |                   | 77,353,198 |                     | 77,196,937 |                     | (80,023 
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate balance sheet sensitivity   |                   |            |                     |            |                     | (180,622
|            |                                                 |                   |            |                     |            |                     |         

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|
|

|            |                                             | December 31, 2007 |            | Market Value Change |          | Market Value Change |        
|----------- | ------------------------------------------- | ----------------- | ---------- | ------------------- | -------- | ------------------- | -------
|
|
|Derivatives |                                             |                   |            |                     |          |                     |        
|            | Interest rate swaps                         |                   | 23,472,991 |                     | (175,304 | )                   | (79,301
|            | Cross currency interest rate swaps          |                   | 3,224,585  |                     | (456,338 | )                   | 54,822 
|            | Foreign exchange swaps                      |                   | 5,979,974  |                     | (164,900 | )                   | 73     
|            | Financial futures                           |                   | 4,304,865  |                     | 14,985   |                     | 175,618
|            | Outright foreign exchange forwards          |                   | 1,244,970  |                     | 11,917   |                     | (149   
|            | Options                                     |                   | 4,917,565  |                     | 32,557   |                     | 12,297 
|            | Forward rate agreements                     |                   | 79,380     |                     | 60       |                     | 67     
|            |                                             |                   |            |                     |          |                     |        
|            | Total interest rate derivatives sensitivity |                   |            |                     |          |                     | 163,427
|            |                                             |                   |            |                     |          |                     |        

|
|

|            |                                                 | December 31, 2006 |            | Market Value Change |            | Market Value Change |         
|----------- | ----------------------------------------------- | ----------------- | ---------- | ------------------- | ---------- | ------------------- | --------
|
|
|Assets      |                                                 |                   |            |                     |            |                     |         
|            | Deposits with central bank                      |                   | 2,110,191  |                     | 2,110,191  |                     | (4,598  
|            | Securities purchased under agreements to resell |                   | 2,398,097  |                     | 2,398,097  |                     | (3,458  
|            | Interest bearing deposits with banks            |                   | 2,272,043  |                     | 2,270,151  |                     | (17,768 
|            | Money market investments                        |                   | 367,653    |                     | 367,653    |                     | (485    
|            | Debt and equity trading assets                  |                   | 12,682,153 |                     | 12,682,153 |                     | (103,801
|            | Derivative assets                               |                   | 325,013    |                     | 325,013    |                     | 135,751 
|            | Available-for-sale securities at fair value     |                   | 4,155,066  |                     | 4,155,066  |                     | (51,303 
|            | Net loans                                       |                   | 42,532,086 |                     | 43,555,342 |                     | (255,002
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate sensitive assets            |                   | 66,842,302 |                     | 67,863,666 |                     | (300,664
|            |                                                 |                   |            |                     |            |                     |         
|Liabilities |                                                 |                   |            |                     |            |                     |         
|            | Deposits                                        |                   | 55,886,085 |                     | 55,820,187 |                     | 108,215 
|            | Securities sold under agreements to repurchase  |                   | 3,037,503  |                     | 3,037,503  |                     | 4,188   
|            | Other borrowed funds                            |                   | 295,243    |                     | 302,089    |                     | 14,739  
|            | Derivative liabilities                          |                   | 423,685    |                     | 423,685    |                     | (47,082 
|            | Long term debt                                  |                   | 4,445,565  |                     | 4,412,288  |                     | 77,527  
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate sensitive liabilities       |                   | 64,088,081 |                     | 63,995,752 |                     | 157,587 
|            |                                                 |                   |            |                     |            |                     |         
|            | Total interest rate balance sheet sensitivity   |                   |            |                     |            |                     | (143,077
|            |                                                 |                   |            |                     |            |                     |         

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|
|

|            |                                             | December 31, 2006 |            | Market Value Change |         | Market Value Change |         
|----------- | ------------------------------------------- | ----------------- | ---------- | ------------------- | ------- | ------------------- | --------
|
|
|Derivatives |                                             |                   |            |                     |         |                     |         
|            | Interest rate swaps                         |                   | 20,809,831 |                     | (83,535 | )                   | (161,185
|            | Cross-currency interest rate swaps          |                   | 1,620,339  |                     | 40,393  |                     | 19,847  
|            | Foreign exchange swaps                      |                   | 5,231,321  |                     | (74,714 | )                   | 80      
|            | Financial futures                           |                   | 6,911,016  |                     | 23,647  |                     | 213,307 
|            | Outright foreign exchange forwards          |                   | 1,576,966  |                     | 5,599   |                     | (257    
|            | Options                                     |                   | 4,143,857  |                     | (10,069 | )                   | 16,877  
|            | Forward rate agreements                     |                   | 24,593     |                     | 7       |                     |        
|            |                                             |                   |            |                     |         |                     |         
|            | Total interest rate derivatives sensitivity |                   |            |                     |         |                     | 88,669  
|            |                                             |                   |            |                     |         |                     |         

The absolute market value change of our debt and equity trading assets in a 100 basis points parallel shift of the yield curve has increased from
€103.8 million (upward shift) and €28.4 million (downward shift) to €104.5 million (upward shift) and
€66.0 million (downward shift) in 2007 reflecting a higher level of interest rate risk.

The
absolute market value change of our available-for-sale securities in a 100 basis points parallel shift of the yield curve increased from
€51.3 million (upward shift) and €46.7 million (downward shift) in 2006 to €73.7 million (upward shift) and
€70 million (downward shift) in 2007, respectively, reflecting both an increase of our portfolio and higher levels of interest rate risk.

The
market value change of our loan portfolio in a 100 basis points parallel shift of the yield curve has increased from €255million (upward shift) and
€279.3 million (downward shift) in 2006 to €478.7 million (upward shift) and €510.4 million (downward shift) in 2007, reflecting
both an increase of our portfolio and higher levels of interest rate risk.

On
the liabilities side, the market value change of our deposits in a 100 basis points parallel shift of the yield curve remained stable from €108.2 million
(upward shift) and €109.4 million (downward shift) in 2006 to €106.7 million (upward shift) and €107 million (downward shift) in
2007, despite the increase of our portfolio, reflecting lower interest rate risk.

The
absolute market value change of our derivatives portfolio in a 100 basis points parallel shift of the yield curve increased from €88.7 million (upward shift)
and €22.3 million (downward shift) in 2006 to €163 million (upward shift) and €129.1 million (downward shift) in 2007.

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Foreign currency exchange sensitivity analysis

We deal in several currencies hence, a sensitivity analysis has been performed to show the effects that a simultaneous change of all currencies against the euro
would have on our financial position.

The
foreign currency exchange sensitivity analysis below was performed based on the following assumptions:

Balance sheet items



|            |                                                  | December 31, 2007 |            | Market Value Change |           
|----------- | ------------------------------------------------ | ----------------- | ---------- | ------------------- | ----------
|
|
|Assets      |                                                  |                   |            |                     |           
|            | Cash and due from banks                          |                   | 4,226,768  |                     | 4,226,768 
|            | Deposits with central bank                       |                   | 2,372,145  |                     | 2,372,145 
|            | Securities purchased under agreements to resell  |                   | 1,415,688  |                     | 1,415,688 
|            | Interest bearing deposits with banks             |                   | 1,777,422  |                     | 1,777,446 
|            | Money market investments                         |                   | 254,034    |                     | 254,034   
|            | Debt and equity trading assets                   |                   | 12,371,326 |                     | 12,371,326
|            | Derivative assets                                |                   | 334,783    |                     | 334,783   
|            | Available-for-sale securities at fair value      |                   | 4,550,227  |                     | 4,550,227 
|            | Net loans                                        |                   | 54,427,540 |                     | 54,943,425
|            | Accrued interest receivable                      |                   | 843,675    |                     | 843,675   
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange sensitive assets          |                   | 82,573,608 |                     | 83,089,517
|            |                                                  |                   |            |                     |           
|Liabilities |                                                  |                   |            |                     |           
|            | Deposits                                         |                   | 66,872,882 |                     | 66,822,922
|            | Securities sold under agreements to repurchase   |                   | 3,509,525  |                     | 3,509,397 
|            | Derivative liabilities                           |                   | 1,071,806  |                     | 1,071,806 
|            | Other borrowed funds                             |                   | 473,666    |                     | 471,706   
|            | Long-term debt                                   |                   | 5,425,319  |                     | 5,321,106 
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange sensitive liabilities     |                   | 77,353,198 |                     | 77,196,937
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange balance sheet sensitivity |                   |            |                     |           
|            |                                                  |                   |            |                     |           

|
|

|            |                                                | December 31, 2007 |            | Market Value Change |         
|----------- | ---------------------------------------------- | ----------------- | ---------- | ------------------- | --------
|
|
|Derivatives |                                                |                   |            |                     |         
|            | Interest rate swaps                            |                   | 23,472,991 |                     | (175,304
|            | Cross-currency interest rate swaps             |                   | 3,224,585  |                     | (456,338
|            | Foreign exchange swaps                         |                   | 5,979,974  |                     | (164,900
|            | Financial futures                              |                   | 4,304,865  |                     | 14,985  
|            | Outright foreign exchange forwards             |                   | 1,244,970  |                     | 11,917  
|            | Options                                        |                   | 4,917,565  |                     | 32,557  
|            | Forward rate agreements                        |                   | 79,380     |                     | 60      
|            |                                                |                   |            |                     |         
|            | Total foreign exchange derivatives sensitivity |                   |            |                     |         
|            |                                                |                   |            |                     |         

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|
|

|            |                                                  | December 31, 2006 |            | Market Value Change |           
|----------- | ------------------------------------------------ | ----------------- | ---------- | ------------------- | ----------
|
|
|Assets      |                                                  |                   |            |                     |           
|            | Cash and due from banks                          |                   | 1,863,974  |                     | 1,863,974 
|            | Deposits with central bank                       |                   | 2,110,191  |                     | 2,110,191 
|            | Securities purchased under agreements to resell  |                   | 2,398,097  |                     | 2,398,097 
|            | Interest bearing deposits with banks             |                   | 2,272,043  |                     | 2,270,151 
|            | Money market investments                         |                   | 367,653    |                     | 367,653   
|            | Debt and equity trading assets                   |                   | 12,682,153 |                     | 12,682,153
|            | Derivative assets                                |                   | 325,013    |                     | 325,013   
|            | Available-for-sale securities at fair value      |                   | 4,155,066  |                     | 4,155,066 
|            | Net loans                                        |                   | 42,532,086 |                     | 43,555,342
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange sensitive assets          |                   | 68,706,276 |                     | 69,727,640
|            |                                                  |                   |            |                     |           
|Liabilities |                                                  |                   |            |                     |           
|            | Deposits                                         |                   | 55,886,085 |                     | 55,820,187
|            | Securities sold under agreements to repurchase   |                   | 3,037,503  |                     | 3,037,503 
|            | Derivative liabilities                           |                   | 423,685    |                     | 423,685   
|            | Other borrowed funds                             |                   | 295,243    |                     | 302,089   
|            | Long-term debt                                   |                   | 4,445,565  |                     | 4,412,288 
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange sensitive liabilities     |                   | 64,088,081 |                     | 63,995,752
|            |                                                  |                   |            |                     |           
|            | Total foreign exchange balance sheet sensitivity |                   |            |                     |           
|            |                                                  |                   |            |                     |           

|
|

|            |                                                | December 31, 2006 |            | Market Value Change |        
|----------- | ---------------------------------------------- | ----------------- | ---------- | ------------------- | -------
|
|
|Derivatives |                                                |                   |            |                     |        
|            | Interest rate swaps                            |                   | 20,809,831 |                     | (83,535
|            | Cross-currency interest rate swaps             |                   | 1,620,339  |                     | 40,393 
|            | Foreign exchange swaps                         |                   | 5,231,321  |                     | (74,714
|            | Financial futures                              |                   | 6,911,016  |                     | 23,647 
|            | Outright foreign exchange forwards             |                   | 1,576,966  |                     | 5,599  
|            | Options                                        |                   | 4,143,857  |                     | (10,069
|            | Forward rate agreements                        |                   | 24,593     |                     | 7      
|            |                                                |                   |            |                     |        
|            | Total foreign exchange derivatives sensitivity |                   |            |                     |        
|            |                                                |                   |            |                     |        

ITEM 12   DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

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PART II

ITEM 13    DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14    MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

A.    On
May 9, 2003, the General Meeting of Shareholders approved the increase in the Bank's share capital by €104,341,945.50 through capitalization of
reserves, and the issuance of 23,187,099 new bonus shares to be distributed to the Bank's shareholders in proportion of one new share for every ten shares held as of the record date, May 30,
2003. Following the issuance of the bonus shares, the Bank's share capital is €1,147,761,382.50, represented by 255,058,085 fully-paid shares, nominal value
€4.50 per share.

On
May 18, 2004, the Bank's shareholders at the General Meeting of Shareholders approved the increase in the Bank's share capital by €344,328,417 through
capitalization of reserves and the issuance of 76,517,426 new bonus shares to be distributed to the Bank's shareholders in a proportion of three new share for every ten shares held as of the record
date, June 10, 2004. Following the issuance of the bonus shares, on June 18, 2004, the Bank's share capital is
€1,492,089,799.50, represented by 331,575,511 fully-paid shares, with nominal value €4.50 per share.

By
resolution adopted by the second repeat General Meeting of Shareholders on November 3, 2005, the Bank's share capital was increased by €123,585 thousand through
the absorption of National Investment Company S.A., in compliance with the provisions of Article 16 of Law 2515/1997, in conjunction with the provisions of
Articles 1-5 of Law 2166/1993 and Articles 68,69-77 of Greek Companies Act 2190/1920 and from capitalization of a part of the Bank's share premium account
reserve, which was decided so that the nominal value of the total number of the Bank's shares increased to €4.80, subsequent to the merger by absorption of National Investment
Company S.A.

By
resolution adopted by the second repeat General Meeting of Shareholders on February 3, 2006, the share capital was increased by €80,672 thousand through the
absorption of National Real Estate, in compliance with the provisions of Article 16 of Law 2515/1997, in conjunction with the provisions of Articles 1-5 of Law 2166/1993 and
Articles 68, 69-77 of Greek Companies Act 2190/1920 and from capitalization of a part of the Bank's share premium account reserve, which was decided so that the nominal value of the
total number of the Bank's shares increased to €5, subsequent to the merger by absorption of National Real Estate. Thus, the Bank's share capital on March 31, 2006 increased to
€1,696,347,060 and was divided into 339,269,412 shares, of a nominal value of €5 each.

On
June 1, 2006, the Bank's shareholders at the General Meeting of Shareholders approved the increase in the share capital of the Bank by
€678,539 thousand, with payment in cash with pre-emptive rights in favor of existing shareholders, at a ratio of four new to ten old shares. The share capital
increase was completed on July 7, 2006. A total of 135,707,764 new common registered shares were issued, of a nominal value of €5 and offer price of €22.11,
chiefly for the purpose of the implementation of the acquisition of Finansbank.

On
November 29, 2006, the Board of Directors approved the issue of 2,992,620 share options under a stock options program approved by the repeat General Meeting of Shareholders on
June 22, 2005 for the executive members of the Board of Directors, management and staff of the Group. On December 21, 2006, following the completion of the first exercise period of 15%
of the share options that were vested immediately with the approval of the Board, a total of 310,043 shares were issued, of a nominal value of €5 and exercise price of
€23.80.

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On
May 25, 2007, the Bank's shareholders at the General Meeting of Shareholders approved the increase in the share capital of the Bank by €1,750,000 through
capitalization of profits. A total of 350,000 common registered shares were issued, of a nominal value of €5. The newly issued shares were distributed to the personnel of the Bank as
bonus shares.

On
November 1, 2007, the Board of Directors approved the issue of 496,500 share options under the stock options program approved by the repeat General Meeting of Shareholders on
June 22, 2005. Furthermore, on November 1, 2007, the Board of Directors approved the issue of an additional 3,014,100 share options under the stock options program approved by the second
repeat General Meeting of Shareholders on June 1, 2006. On December 20, 2007, following the completion of the exercise period of the share options that were vested with the approval of
the Board of Directors, a total of 1,561,242 shares were issued, of a nominal value of €5.00 and exercise price of €23.80 for 1,157,667 shares and
€23.00 for 403,575 shares.

On
April 17, 2008 the General Meeting of the shareholders approved the distribution of dividend of €1.4 per share with May 16, 2008 being the
ex-dividend date. On May 15, 2008, the repeat General Meeting of Shareholders approved the distribution of the above dividend partly in the form of €0.40 cash
dividend and partly in the form of shares, by issuing four new shares for every one hundred shares held as of May 15, 2008. Following this resolution, the Bank issued 19,067,838 new shares with
a nominal value of €5 per share to existing shareholders without payment. Following the decision of distributing €1.00 as scrip dividend and this share capital
increase, common stock increased by €95,339 thousand and the accumulated surplus decreased by €103,430 thousand, while share capital amounts to
€2,481,331 thousand divided to 496,266,299 shares with a nominal value of €5.00 each.

On
May 16, 2008, the Board of Directors of the ATHEX approved for trading the 19,067,838 new common shares of the Bank derived from the above mentioned stock dividend with
effective date May 23, 2008.

On
May 15, 2008, the second repeat General Meeting of Shareholders authorized the Board of Directors to increase the share capital of the Bank through the issue of common shares
with a preemptive right in favor of old shareholders (pursuant to Article 13 of the Companies Act), within a period of three years from the date of this General Meeting of Shareholders
resolution and up to the amount that corresponds to 50% of the Bank's paid up share capital.

On
May 15, 2008, the second repeat General Meeting of Shareholders approved the Bank's share capital increase for up to €1.5 billion through the issue of
redeemable preference shares (pursuant to Article 17b of the Companies Act) with abolition of existing shareholders' preemptive right.

The
Bank's share capital as of December 31, 2007 amounted to €2,385,992 thousand divided into 477,198,461 shares of a nominal value of €5.00 each.



ITEM 15    CONTROLS AND PROCEDURES

(a)   Disclosure Controls and Procedures

As of December 31, 2007, we performed an evaluation, under the supervision and with the participation of our management, including our Chairman and Chief
Executive Officer, Deputy CEO, and Chief Financial Officer and Chief Operations Officer of the effectiveness of our disclosure controls and procedures. There are inherent limitations to the
effectiveness of any system of disclosure controls

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and
procedures including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only
provide reasonable assurance of achieving their control objectives. Based upon that evaluation, the Chief Executive Officer, Deputy CEO, and Chief Financial Officer and Chief Operations Officer have
concluded that our disclosure controls and procedures are effective in providing reasonable assurance that material financial and non-financial information required to be disclosed in this
Annual Report is recorded, processed, summarized and reported in a timely manner and that it is accumulated and communicated to our management, including our Chairman and Chief Executive Officer,
Deputy CEO, Chief Financial Officer and Chief Operating Officer, as appropriate, to allow timely decisions regarding required disclosure.



In June 2003, the Bank's Management established the Disclosure and Transparency Committee. The purpose of the committee is to monitor the accuracy and adequacy of
the information included in public announcements, and generally, in any kind of publications made by the Bank, especially information submitted to the SEC.

The
following are members of the Disclosure and Transparency Committee:



(b)   Management's Annual Report on Internal Control over Financial Reporting

The management of the National Bank of Greece S.A. is responsible for establishing and maintaining adequate internal control over financial reporting for
National Bank of Greece S.A. and its subsidiaries ("the Group").

The
Group's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. The Group's internal control over financial reporting includes
those policies and procedures that:



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Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management
assessed the effectiveness of the Group's internal control over financial reporting as of December 31, 2007, based on the framework set forth by the Committee of
Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (COSO). Based on that assessment, management concluded that, as of December 31, 2007, the Group's
internal control over financial reporting is effective.

Management's
assessment of the effectiveness of the Group's internal control over financial reporting as of December 31, 2007, has been audited by Deloitte Hadjipavlou
Sofianos & Cambanis S.A., an independent registered public accounting firm.

Dated
May 27, 2008

|Efstratios-Georgios (Takis) A. ArapoglouEfstratios-Georgios (Takis) A. Arapoglou Chairman and Chief Executive Officer |  | 
|--------------------------------------------------------------------------------------------------------------------- |  | 
|Ioannis G. PechlivanidisIoannis G. Pechlivanidis Vice-Chairman and Deputy Chief Executive Officer                     |  | 
|Anthimos ThomopoulosAnthimos Thomopoulos Chief Financial Officer and
Chief Operations Officer                         |  | 

(c)   Report of Independent Registered Public Accounting Firm

To
the Board of Directors and Shareholders of
National Bank of Greece S.A. and subsidiaries
Athens, Greece

We
have audited the internal control over financial reporting of National Bank of Greece S.A. and subsidiaries (the "Group") as of December 31, 2007, based on criteria
established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Group's management is responsible for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Annual Report on Internal
Control over Financial Reporting. Our responsibility is to express an opinion on the Group's internal control over financial reporting based on our audit.

We
conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over

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financial
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A
company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or
persons performing similar functions, and effected by the company's board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because
of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to
future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In
our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, based on the criteria established in
Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year
ended December 31, 2007 of the Group. Our report dated May 27, 2008 expressed an unqualified opinion on those financial statements and included an explanatory paragraph relating to the
translation of Euro amounts into U.S. dollar amounts for the convenience of the readers in the United States in accordance with Note 2 of such consolidated financial statements.

Deloitte Hadjipavlou Sofianos & Cambanis S.A.Athens, Greece
May 27, 2008

(d)   Changes in Internal Control over Financial Reporting

During the year ended December 31, 2007, there have been no changes in our internal control over financial reporting, that have materially affected, or are
reasonably likely to materially affect our internal control over financial reporting.

ITEM 16A    AUDIT COMMITTEE FINANCIAL EXPERT

On May 18, 2004, the Bank's Board of Directors appointed Mr. Stefanos Pantzopoulos, an independent non-executive member of the Board, as
the Audit Committee Financial Expert. Mr. Pantzopoulos is independent, as that term is defined in the New York Stock Exchange's manual for listed companies. Mr. Pantzopoulos holds a
degree in economics, was in public accounting service in

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Greece
and abroad for more than 35 years and has served as Chairman and Managing Partner of the Greek practice of Arthur Andersen from 1977 to 1998. During that time, Mr. Pantzopoulos
was actively involved in the supervision of the audit (in accordance with U.S. GAAP) of the accounts of a large number of subsidiary companies, affiliated companies and branches in Greece of
U.S.-based companies. In addition, Mr. Pantzopoulos has served as member of the Supervisory Board of the Greek Certified Public Accountants' Association from 1992 to 2000.
Mr. Pantzopoulos has also served as member of the Board of Directors of the Hellenic-American Chamber of Commerce for a number of years. Mr. Pantzopoulos was reappointed by the Bank's
Board of Directors as the Audit Committee's Financial Expert on May 25, 2007.

ITEM 16B    CODE OF ETHICS

The Bank's Board of Directors approved a Code of Ethics for Financial Professionals on February 12, 2004, which covers all Group companies. The Code of
Ethics for Financial Professionals covers the
activities of the Executive Members of the Board of Directors of each Group entity, the Chief Executive Officer and Chief Financial Officer of each Group company as well as all persons responsible for
the preparation of financial statements and those dealing with investor relations. The Code of Ethics for Financial Professionals, among other matters, includes provisions for compliance with
applicable rules and regulations, demonstrating personal integrity, engaging in honest and ethical conduct, and ensuring that public communications by the Bank are complete, accurate, timely and
understandable. A copy of the Code of Ethics for Financial Professionals has been posted on the Bank's website:www.nbg.gr.

Further,
our Board of Directors approved a Group Code of Ethics (the "Code of Ethics") on November 26, 2006. All Group companies either adopted the Code of Ethics or adjusted any
existing ethics code to agree to the Group Code of Ethics. The Code of Ethics was sent to each Group employee in early 2007. It appropriately covers issues relating to employee integrity,
professionalism and conflict of interests, ethical behavior, business conduct with third parties and compliance with rules and regulations. A copy of the Group Code of Ethics is available on the
Bank's website:www.nbg.gr.

ITEM 16C    PRINCIPAL ACCOUNTANT FEES AND SERVICES

Deloitte Hadjipavlou Sofianos & Cambanis S.A. has served as our principal independent public accountant for each of the past two years ended
December 31, 2006 and 2007. The following table presents the aggregate fees for professional audit services and other services rendered by the Group's principal accounting firm Deloitte
Hadjipavlou Sofianos & Cambanis S.A., the other member firms of Deloitte Hadjipavlou Sofianos & Cambanis S.A., and their respective affiliates (collectively, "Deloitte").

|                   |  | Year ended December 31,
|------------------ |  | -----------------------
|
|
|Audit fees         |  | 7,228                  
|Audit-related fees |  | 296                    
|Tax fees           |  | 48                     
|All other fees     |  | 16                     
|                   |  |                        
|Total              |  | 7,588                  
|                   |  |                        

Audit Fees

Fees billed for audit services for the years ended December 31, 2006 and 2007 consisted primarily of the audit of the Group's consolidated U.S. GAAP
Financial Statements, the audit of statutory and

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subsidiary
financial statements and of services provided for compliance with the Sarbanes-Oxley Act requirements.

Audit-Related Fees

Fees billed for audit related services for the year ended December 31, 2006 and 2007 consisted primarily of other audit and attest services and system and
application control reviews.

Tax Fees

Fees billed for tax services for the years ended December 31, 2006 and 2007 consisted primarily of tax compliance, advisory, and planning services and
preparation of tax returns.

All other Fees

In 2006 and 2007, other audit fees related to various advisory services.

The
Audit Committee has implemented a policy as of May 6, 2003 to approve, on a case-by-case basis, all audit-related services, tax services, and other
services in accordance with the rules and regulations concerning auditor independence promulgated by the SEC to implement the Sarbanes-Oxley Act of 2002. Following its decision on January 30,
2006, the Audit Committee has adopted pre- approval guidelines for all allowable non-audit services to be offered by the Group's statutory auditors for which the fee is not
higher than the equivalent of €20,000, as well as for services to NBG Private Equity Ltd regarding the performance of standard agreed upon procedures to audit the exit
calculations of Fund investments. These services may be approved by the Chief Financial Officer and the Audit Committee's approval is obtained at the next Audit Committee meeting. All other allowable
audit and non-audit services to be offered by the Group's statutory auditors are approved, on a case-by-case basis, in accordance with the rules and regulations
concerning auditor independence promulgated by the SEC to implement the Sarbanes-Oxley Act of 2002.

All
"Audit fees", "Audit related fees" and "Tax fees" for 2006 and 2007 were specifically approved by the Audit Committee.

ITEM 16D    EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable.

ITEM 16E    PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

On May 18, 2004, the General Meeting of Shareholders approved the Bank's share buy-back program, on the basis of article 16,
paragraph 5 et seq. of Greek Companies Act 2190/1920, which permitted the Bank to purchase up to 5% of paid-up capital, during
the period June 15, 2004 to April 30, 2005, at a price per share ranging from a minimum of €4.50 to a maximum of €26.92.

On
May 17, 2005, the General Meeting of Shareholders renewed the share buy-back program that had just expired with a new effective date of June 1, 2005, and
expiration date of May 31, 2006 at a price per share ranging from a minimum of €4.50 to a maximum of €37.00.

On
April 27, 2006, the General Meeting of Shareholders approved a share buy-back program in accordance with article 16 par. 5 et seq. of of Greek Companies Act
2190/1920, which permitted the Bank to purchase up to 10% of the aggregate amount of the shares of the Bank with a minimum purchase price of €5 and a maximum of €60 per
share for the time period between May 2, 2006 and April 27, 2007.

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On
May 25, 2007, the General Meeting of Shareholders approved a share buy-back program in accordance with article 16 par. 5 et seq. of Greek Companies Act
2190/1920, which permitted the Bank to purchase up to 10% of the aggregate amount of the shares of the Bank with a minimum purchase price of €5 and a maximum of €60 per
share for the time period between June 1, 2007 and May 24, 2008.

On
February 5, 2008, the Board of Directors approved the purchase of up to 20,000,000 of its own shares at a minimum price of €5 per share and a maximum price of
€60 per share, for the period from February 8, 2008 to May 24, 2008.

On
April 17, 2008, the General Meeting of Shareholders approved a share buy-back program in accordance with article 16 par. 5 et seq. of Greek Companies Act
2190/1920, which permits the Bank to purchase up to 10% of the aggregate amount of shares of the Bank with a minimum purchase price of €5 and a maximum of €60 per share
for the time period between May 25, 2008 through May 24, 2009.

During
2007, the Bank purchased 950,610 shares at an average price of €40.60 and sold on May 16, 2007 583,110 shares for an average price of
€36.84. Thus, the July 2007 purchase of 307,500 shares did not surpass the maximum number of shares that the Bank is permitted to buy under the program. As at December 31, 2007,
the Bank held 502,500 own shares. All purchases and disposals were made in market transactions effected on the ATHEX. No purchases were made other than in accordance with our buy-back
program.

Pursuant
to the buy-back program, for the year ended December 31, 2007, the Bank purchased shares as follows:

|Period                      |  | Total Number of Shares Purchased |  | Average Price Paid per Share (in EUR) |  | Total Number of Shares Purchased as Part of Publicly Announced Programs |  | Maximum Number of Shares that May Yet Be Purchased Under the Programs
|--------------------------- |  | -------------------------------- |  | ------------------------------------- |  | ----------------------------------------------------------------------- |  | ---------------------------------------------------------------------
|January 1 to January 31     |  | 110,000                          |  | 36.02                                 |  | 110,000                                                                 |  | 47,283,722                                                           
|February 1 to February 28   |  | 45,000                           |  | 39.63                                 |  | 45,000                                                                  |  | 47,238,722                                                           
|March 1 to March 31         |  | 258,110                          |  | 38.27                                 |  | 258,110                                                                 |  | 46,980,612                                                           
|April 1 to April 30         |  | 35,000                           |  | 39.06                                 |  | 35,000                                                                  |  | 46,945,612                                                           
|May 1 to May 31             |  |                                 |  |                                      |  |                                                                        |  | 47,528,722                                                           
|June 1 to June 30           |  |                                 |  |                                      |  |                                                                        |  | 47,528,722                                                           
|July 1 to July 31           |  | 307,500                          |  | 43.61                                 |  | 307,500                                                                 |  | 47,221,222                                                           
|August 1 to August 31       |  | 145,000                          |  | 41.19                                 |  | 145,000                                                                 |  | 47,076,222                                                           
|September 1 to September 30 |  |                                 |  |                                      |  |                                                                        |  | 47,076,222                                                           
|October 1 to October 31     |  |                                 |  |                                      |  |                                                                        |  | 47,076,222                                                           
|November 1 to November 30   |  | 50,000                           |  | 44.37                                 |  | 50,000                                                                  |  | 47,061,222                                                           
|December 1 to December 31   |  |                                 |  |                                      |  |                                                                        |  | 47,061,222                                                           
|                            |  |                                  |  |                                       |  |                                                                         |  |                                                                      
|Total                       |  | 950,610                          |  |                                      |  | 950,610                                                                 |  |                                                                      
|                            |  |                                  |  |                                       |  |                                                                         |  |                                                                      

189

---





PART III

ITEM 17    FINANCIAL STATEMENTS

Please see Item 18.

ITEM 18    FINANCIAL STATEMENTS

See our consolidated financial statements and the notes thereto beginning on page F-1, which we incorporate herein by reference.

ITEM 19    EXHIBITS

|Exhibit
Number |  | Description of Exhibits                                                                                                                                                                                                                                
|-------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1              |  | An English translation of the Articles of Association of the Bank, as amended with effect from May 16, 2008.                                                                                                                                           
|4.1            |  | Share Purchase Agreement, dated April 3, 2006, as amended and restated, by and between National Bank of Greece S.A. and Fiba Holding A.S., Fina Holding A.S., Girisim Factoring A.S. and Fiba Factoring Hizmetleri A.S.(1)                             
|4.2            |  | Shareholders' Agreement, dated August 18, 2006, by and between National Bank of Greece S.A. and Fiba Holding A.S., Girisim Factoring A.S. and Fiba Factoring Hizmetleri A.S.(1)                                                                        
|8              |  | Subsidiaries of the Bank.                                                                                                                                                                                                                              
|12.1           |  | Certification of the Chairman and Chief Executive Officer, the Deputy Chief Executive Officer and the Chief Financial Officer and Chief Operations Officer pursuant to Rule 13(a)-14(a) of the Securities Exchange Act of 1934.                        
|13.1           |  | Certification of Chairman and Chief Executive Officer, Deputy Chief Executive Officer and Chief Financial Officer and Chief Operations Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.

---

190

---





SIGNATURES

The registrant hereby certifies that it meets all of the requirements for this filing on Form 20-F and that it has duly caused and authorized
the undersigned to sign this Annual Report on its behalf.

| |  | NATIONAL BANK OF GREECE S.A.(Registrant)
| |  | ----------------------------------------
| |  | By:                                     

Date:
May 27, 2008

191

---



National Bank of Greece S.A. and Subsidiaries

Consolidated Financial Statements as of December 31, 2006 and 2007 and for the Years
Ended December 31, 2005, 2006 and 2007 and Report of Independent Registered Certified Public Accounting Firm

F-1

---





National Bank of Greece S.A. and Subsidiaries

INDEX TO FINANCIAL STATEMENTS

|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |                                                                                                                 | F-3
|------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ---
|CONSOLIDATED FINANCIAL STATEMENTS                       |                                                                                                                 |    
|                                                        | Consolidated Balance Sheets as of December 31, 2006 and 2007                                                    |    
|                                                        | Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2005, 2006 and 2007 |    
|                                                        | Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2005, 2006 and 2007 |    
|                                                        | Consolidated Statements of Cash Flows for the years ended December 31, 2005, 2006 and 2007                      |    
|                                                        | Notes to Consolidated Financial Statements                                                                      |    

F-2

---





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board of Directors and Shareholders of
National Bank of Greece S.A. and subsidiaries
Athens, Greece

We
have audited the accompanying consolidated balance sheets of National Bank of Greece S.A. and subsidiaries (the "Group") as of December 31, 2007 and 2006, and the related consolidated
statements of income and comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility
of the Group's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In
our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of National Bank of Greece S.A. and subsidiaries at December 31,
2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted
in the United States of America.

Our
audits also comprehended the translation of the Euro amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis stated in Note
2. Such US dollar amounts are presented solely for the convenience of the readers in the United States.

We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Group's internal control over financial reporting as of
December 31, 2007, based on the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
May 27, 2008 expressed an unqualified opinion on the Group's internal control over financial reporting.

Deloitte Hadjipavlou Sofianos & Cambanis S.A.Athens, Greece
May 27, 2008

F-3

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

|       |                                                                                                                                                                |  |    | As of December 31, |           
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -- | ------------------ | ----------
|
|
|ASSETS |                                                                                                                                                                |  |    |                    |           
|       | Cash and due from banks                                                                                                                                        |  | 5  |                    | 1,863,974 
|       | Deposits with Central Bank                                                                                                                                     |  | 6  |                    | 2,110,191 
|       | Securities purchased under agreements to resell                                                                                                                |  | 7  |                    | 2,398,097 
|       | Interest bearing deposits with banks                                                                                                                           |  | 8  |                    | 2,272,043 
|       | Money market investments                                                                                                                                       |  | 9  |                    | 367,653   
|       | Trading assets (includes EUR 1,436,025 thousand and EUR 1,899,623 thousand in 2006 and 2007 respectively, pledged as collateral)                               |  | 10 |                    | 7,374,207 
|       | Financial instruments marked to market through the profit and loss                                                                                             |  | 11 |                    | 5,307,946 
|       | Derivative assets                                                                                                                                              |  | 12 |                    | 325,013   
|       | Available-for-sale securities, at fair value (includes EUR 1,022,643 thousand and EUR 1,239,729 thousand in 2006 and 2007 respectively, pledged as collateral) |  | 13 |                    | 4,155,066 
|       | Equity method investments                                                                                                                                      |  | 14 |                    | 234,570   
|       | Loans                                                                                                                                                          |  | 15 |                    | 43,756,843
|       | Less: Allowance for loan losses                                                                                                                                |  |    |                    | (1,224,757
|       |                                                                                                                                                                |  |    |                    |           
|       | Net loans                                                                                                                                                      |  |    |                    | 42,532,086
|       |                                                                                                                                                                |  |    |                    |           
|       | Goodwill                                                                                                                                                       |  | 16 |                    | 2,349,677 
|       | Software and other intangibles                                                                                                                                 |  | 16 |                    | 209,819   
|       | Premises and equipment, net                                                                                                                                    |  | 17 |                    | 950,562   
|       | Accrued interest receivable                                                                                                                                    |  |    |                    | 700,660   
|       | Other assets                                                                                                                                                   |  | 18 |                    | 2,562,174 
|       | Assets classified as held for sale                                                                                                                             |  | 19 |                    |          
|       |                                                                                                                                                                |  |    |                    |           
|       | TOTAL ASSETS                                                                                                                                                   |  |    |                    | 75,713,738
|       |                                                                                                                                                                |  |    |                    |           

The accompanying notes are an integral part of these consolidated financial statements.

F-4

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Continued)

|                                     |                                                                                                                                                                |  |    | As of December 31, |           
|------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -- | ------------------ | ----------
|
|
|LIABILITIES AND SHAREHOLDERS' EQUITY |                                                                                                                                                                |  |    |                    |           
|                                     | Interest bearing deposits                                                                                                                                      |  | 21 |                    | 49,619,832
|                                     | Non-interest bearing deposits                                                                                                                                  |  | 21 |                    | 6,266,253 
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | Total deposits                                                                                                                                                 |  |    |                    | 55,886,085
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | Securities sold under agreements to repurchase                                                                                                                 |  | 22 |                    | 3,037,503 
|                                     | Derivative liabilities                                                                                                                                         |  | 12 |                    | 423,685   
|                                     | Other borrowed funds                                                                                                                                           |  | 23 |                    | 295,243   
|                                     | Accounts payable, accrued expenses and other liabilities                                                                                                       |  | 24 |                    | 3,464,889 
|                                     | Insurance reserves                                                                                                                                             |  | 25 |                    | 1,733,566 
|                                     | Long-term debt                                                                                                                                                 |  | 26 |                    | 4,445,565 
|                                     | Liabilities classified as held-for-sale                                                                                                                        |  | 19 |                    |          
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | Total liabilities                                                                                                                                              |  |    |                    | 69,286,536
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | Minority interests                                                                                                                                             |  |    |                    | 788,645   
|SHAREHOLDERS' EQUITY:                |                                                                                                                                                                |  |    |                    |           
|                                     | Common stock, par value of EUR 5.00 in 2006 and in 2007 (shares authorized, issued and outstanding: 475,287,219 and 477,198,461 at 2006 and 2007 respectively) |  |    |                    | 2,376,436 
|                                     | Additional paid-in capital                                                                                                                                     |  | 33 |                    | 2,413,066 
|                                     | Accumulated surplus                                                                                                                                            |  |    |                    | 924,616   
|                                     | Accumulated other comprehensive (loss)/income                                                                                                                  |  | 40 |                    | (48,735   
|                                     | Treasury stock, at cost (882,560 and 502,500 shares at 2006 and 2007 respectively)                                                                             |  |    |                    | (26,826   
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | Total shareholders' equity                                                                                                                                     |  |    |                    | 5,638,557 
|                                     |                                                                                                                                                                |  |    |                    |           
|                                     | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                     |  |    |                    | 75,713,738
|                                     |                                                                                                                                                                |  |    |                    |           

The accompanying notes are an integral part of these consolidated financial statements.

F-5

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

|                      |                                                                |  |    | Year ended December 31, |          
|--------------------- | -------------------------------------------------------------- |  | -- | ----------------------- | ---------
|
|
|Interest Income:      |                                                                |  |    |                         |          
|                      | Loans                                                          |  |    |                         | 1,591,972
|                      | Securities available-for-sale                                  |  |    |                         | 92,843   
|                      | Securities held-to-maturity                                    |  |    |                         | 1,953    
|                      | Trading assets                                                 |  |    |                         | 374,868  
|                      | Securities purchased under agreements to resell                |  |    |                         | 108,673  
|                      | Interest-bearing deposits with banks                           |  |    |                         | 199,607  
|                      | Other                                                          |  |    |                         | 20,472   
|                      |                                                                |  |    |                         |          
|                      | Total interest income                                          |  |    |                         | 2,390,388
|                      |                                                                |  |    |                         |          
|Interest Expense:     |                                                                |  |    |                         |          
|                      | Deposits                                                       |  |    |                         | 598,705  
|                      | Securities sold under agreements to repurchase                 |  | 22 |                         | 141,889  
|                      | Other borrowed funds                                           |  | 23 |                         | 4,595    
|                      | Long-term debt                                                 |  | 26 |                         | 87,240   
|                      | Other                                                          |  |    |                         | 4,692    
|                      |                                                                |  |    |                         |          
|                      | Total interest expense                                         |  |    |                         | 837,121  
|                      |                                                                |  |    |                         |          
|                      | Net interest income before provision for loan losses           |  |    |                         | 1,553,267
|                      | Provision for loan losses                                      |  | 15 |                         | (225,013 
|                      |                                                                |  |    |                         |          
|                      | Net interest income after provision for loan loss              |  |    |                         | 1,328,254
|                      |                                                                |  |    |                         |          
|Non-Interest Income:  |                                                                |  |    |                         |          
|                      | Credit card fees                                               |  |    |                         | 79,675   
|                      | Service charges on deposit accounts                            |  |    |                         | 38,218   
|                      | Other fees and commissions                                     |  | 28 |                         | 369,730  
|                      | Net trading profit/(loss)                                      |  |    |                         | 5,933    
|                      | Net realized gains on sales of available-for-sale securities   |  | 13 |                         | 119,523  
|                      | Equity in earnings of investees and realized gains on disposal |  | 14 |                         | 36,823   
|                      | Other                                                          |  | 29 |                         | 816,871  
|                      |                                                                |  |    |                         |          
|                      | Total non-interest income                                      |  |    |                         | 1,466,773
|                      |                                                                |  |    |                         |          
|Non-interest Expense: |                                                                |  |    |                         |          
|                      | Salaries                                                       |  |    |                         | 615,803  
|                      | Employee benefits                                              |  |    |                         | 260,898  
|                      | Voluntary early retirement schemes                             |  |    |                         | 16,667   
|                      | Occupancy expenses                                             |  |    |                         | 49,484   
|                      | Equipment expenses                                             |  |    |                         | 19,327   
|                      | Depreciation of premises and equipment                         |  |    |                         | 60,209   
|                      | Amortization of intangible assets                              |  |    |                         | 23,898   
|                      | Impairment of goodwill                                         |  |    |                         | 16,162   
|                      | Deposit insurance premium                                      |  |    |                         | 15,976   
|                      | Minority interests, net of tax                                 |  |    |                         | 40,625   
|                      | Other                                                          |  | 30 |                         | 916,281  
|                      |                                                                |  |    |                         |          
|                      | Total non-interest expense                                     |  |    |                         | 2,035,330
|                      |                                                                |  |    |                         |          
|                      | Income from continuing operations before income tax expense    |  |    |                         | 759,697  
|                      | Income tax expense                                             |  | 31 |                         | (232,786 
|                      |                                                                |  |    |                         |          
|                      | Income from continuing operations net of tax                   |  |    |                         | 526,911  
|                      |                                                                |  |    |                         |          
|                      | Discontinued operations                                        |  | 19 |                         | 46,773   
|                      | Income tax expense                                             |  |    |                         | (18,490  
|                      | Income from discontinued operations net of tax                 |  |    |                         | 28,283   
|                      |                                                                |  |    |                         |          
|                      | NET INCOME (carried forward)                                   |  |    |                         | 555,194  
|                      |                                                                |  |    |                         |          

The accompanying notes are an integral part of these consolidated financial statements.

F-6

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Continued)

|                   |                                                                                                                                                |                                                                                                                                                                                          |    | Year ended December 31, |        
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ----------------------- | -------
|
|
|                   | NET INCOME (brought forward)                                                                                                                   |                                                                                                                                                                                          |    |                         | 555,194
|                   |                                                                                                                                                | Other comprehensive income, net of tax:                                                                                                                                                  |    |                         |        
|                   |                                                                                                                                                | Foreign currency translation adjustments                                                                                                                                                 |    | 40                      |        
|                   |                                                                                                                                                | Net unrealized holding (losses)/gains on available-for-sale securities:                                                                                                                  |    |                         |        
|                   |                                                                                                                                                | Net unrealized holding gains during the period (net of tax expense of: EUR 12,604 thousand in 2005, EUR 9,320 thousand in 2006 and EUR 15,820 thousand in 2007)                          |    |                         |        
|                   |                                                                                                                                                | Less: reclassification adjustment for net gains included in net income (net of tax expense of: EUR 38,015 thousand in 2005, EUR 18,433 thousand in 2006 and EUR 29,170 thousand in
2007) |    |                         |        
|                   | Pension (liability)/asset (net of tax expense/(benefit)) of EUR (144) thousand in 2005, EUR 76 thousand in 2006 and EUR 9,369 thousand in 2007 |                                                                                                                                                                                          | 38 |                         | (9,611 
|                   |                                                                                                                                                |                                                                                                                                                                                          |    |                         |        
|                   |                                                                                                                                                | Total other comprehensive income, net of tax                                                                                                                                             |    |                         |        
|                   |                                                                                                                                                |                                                                                                                                                                                          |    |                         |        
|                   | COMPREHENSIVE INCOME                                                                                                                           |                                                                                                                                                                                          |    |                         | 542,324
|                   |                                                                                                                                                |                                                                                                                                                                                          |    |                         |        
|EARNINGS PER SHARE |                                                                                                                                                |                                                                                                                                                                                          |    |                         |        
|                   | Basic EPSIncome from continuing operations                                                                                                    |                                                                                                                                                                                          | 34 |                         | 1.44   
|                   | Basic EPSNet income                                                                                                                           |                                                                                                                                                                                          | 34 |                         | 1.52   
|                   | Diluted EPSIncome from continuing operations                                                                                                  |                                                                                                                                                                                          | 34 |                         | 1.44   
|                   | Diluted EPSNet income                                                                                                                         |                                                                                                                                                                                          | 34 |                         | 1.52   
|                   | CASH DIVIDENDS DECLARED PER SHARE                                                                                                              |                                                                                                                                                                                          |    |                         | 0.60   

The accompanying notes are an integral part of these consolidated financial statements.

F-7

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

|                                                          |                                                                                                                                                           |  |    | Year ended December 31, |          
|--------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -- | ----------------------- | ---------
|
|
|Common Stock:                                             |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at beginning of year (331,575,511, 336,599,045 and 475,287,219 shares at 2005, 2006 and 2007 respectively)                                        |  |    |                         | 1,492,090
|                                                          | Issuance of 5,023,534 shares in 2005 to acquire 100% interest in National Investment Company                                                              |  |    |                         | 22,606   
|                                                          | Capitalisation of additional paid in capital to raise par value of shares from EUR 4.50 to EUR 4.80                                                       |  |    |                         | 100,979  
|                                                          | Issuance of 2,670,367 shares in 2006 to acquire 100% interest in National Real Estate                                                                     |  |    |                         |         
|                                                          | Capitalisation of additional paid in capital to raise par value of shares from EUR 4.80 to EUR 5.00                                                       |  |    |                         |         
|                                                          | Issuance of 135,707,764 shares in 2006 through a rights issue                                                                                             |  |    |                         |         
|                                                          | Share options exercised (310,043 shares in 2006 and 1,561,242 shares in 2007)                                                                             |  |    |                         |         
|                                                          | Capitalisation of accumulated Surplus in 2007 (350,000 shares)                                                                                            |  |    |                         |         
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at end of year (336,599,045, 475,287,219 and 477,198,461 shares at 2005, 2006 and 2007 respectively)                                              |  |    |                         | 1,615,675
|                                                          |                                                                                                                                                           |  |    |                         |          
|Additional Paid-in Capital:                               |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at beginning of year                                                                                                                              |  |    |                         | 19,975   
|                                                          | Issuance of shares to acquire 100% interest in National Investment Company (Ethnex)                                                                       |  | 33 |                         | 139,835  
|                                                          | Issuance of shares to acquire 100% interest in National Real Estate Company (Ethnak)                                                                      |  | 33 |                         |         
|                                                          | Capitalization of additional paid-in capital                                                                                                              |  |    |                         | (100,979 
|                                                          | Issuance of 135,707,764 shares in 2006 through a rights issue of EUR 2,321,960 net of tax expenses of EUR (64,063)                                        |  |    |                         |         
|                                                          | Share options exercised (310,043 shares above par of EUR 18.8 each in 2006 and 1,561,242 shares above par of EUR 18.6 each in 2007)                       |  |    |                         |         
|                                                          | Share based payments                                                                                                                                      |  |    |                         |         
|                                                          | Gain on sales of treasury stock (net of tax expense of EUR 18,126 thousand, EUR 289 thousand and EUR 2,906 thousand in 2005, 2006 and 2007, respectively) |  |    |                         | 76,350   
|                                                          | Treasury stock dividends paid to subsidiaries                                                                                                             |  |    |                         | 4,711    
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at end of year                                                                                                                                    |  |    |                         | 139,892  
|                                                          |                                                                                                                                                           |  |    |                         |          
|Accumulated Surplus:                                      |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at beginning of year                                                                                                                              |  |    |                         | 259,429  
|                                                          | Net income                                                                                                                                                |  |    |                         | 555,194  
|                                                          | Dividends                                                                                                                                                 |  |    |                         | (197,960 
|                                                          | Capitalisation of accumulated Surplus in 2007 (350,000 shares)                                                                                            |  |    |                         |         
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at end of year                                                                                                                                    |  |    |                         | 616,663  
|                                                          |                                                                                                                                                           |  |    |                         |          
|Accumulated Other Comprehensive Income/(Loss)net of tax: |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at beginning of year                                                                                                                              |  |    |                         | 15,192   
|                                                          | Net change in fair value of securities available-for-sale                                                                                                 |  |    |                         | (27,779  
|                                                          | Foreign currency translation adjustments                                                                                                                  |  |    |                         | 24,520   
|                                                          | Pension liability                                                                                                                                         |  |    |                         | (9,611   
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Balance at end of year                                                                                                                                    |  |    |                         | 2,322    
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Treasury Stock, at Cost:                                                                                                                                  |  |    |                         |          
|                                                          | Balance at beginning of year (9,401,899, 40,133 and 882,560 shares at 2005, 2006 and 2007 respectively)                                                   |  |    |                         | (210,128 
|                                                          | Sale of treasury stock (10,251,461, 2,077,220 and 4,378,385 shares during 2005, 2006 and 2007 respectively)                                               |  |    |                         | 235,591  
|                                                          | Purchase of treasury stock (889,695, 1,947,299 and 3,993,215 shares during 2005, 2006 and 2007 respectively)                                              |  |    |                         | (26,567  
|                                                          | Acquisition of subsidiary (5,110 shares)                                                                                                                  |  |    |                         |         
|                                                          | 318,521 allotted shares from the issuance of 135,707,764 shares in 2006 through a rights issue of EUR 2,321,960                                           |  |    |                         |         
|                                                          | Conversion of National Real Estate shares due to merger with the Bank (653,827 shares)                                                                    |  |    |                         |         
|                                                          | Balance at end of year (40,133, 882,560 and 502,500 shares at 2005, 2006 and 2007 respectively)                                                           |  |    |                         | (1,104   
|                                                          |                                                                                                                                                           |  |    |                         |          
|                                                          | Total shareholders' equity                                                                                                                                |  |    |                         | 2,373,448
|                                                          |                                                                                                                                                           |  |    |                         |          

The accompanying notes are an integral part of these consolidated financial statements.

F-8

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                   |                                                                                               | Year ended December 31,           |           
|---------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- | --------------------------------- | ----------
|
|
|Cash flows from Operating Activities:                                              |                                                                                               |                                   |           
|                                                                                   | Net income from continuing operations                                                         |                                   | 526,911   
|                                                                                   | Adjustments to reconcile net income to net cash provided by/ (used in) operating activities:  |                                   |           
|                                                                                   | Provision for loan losses                                                                     |                                   | 225,013   
|                                                                                   | Net gain on sale of premises and foreclosed assets                                            |                                   | (35,035   
|                                                                                   | Net realized gain on sales of available-for-sale securities                                   |                                   | (119,523  
|                                                                                   | Net realized loss/(gain) on sales of subsidiaries                                             |                                   | 3,883     
|                                                                                   | Equity in earnings of equity method investees                                                 |                                   | (36,823   
|                                                                                   | Depreciation of premises and equipment                                                        |                                   | 60,209    
|                                                                                   | Amortization of intangible assets                                                             |                                   | 23,899    
|                                                                                   | Impairment of tangibles                                                                       |                                   |           
|                                                                                   | Impairment of goodwill                                                                        |                                   | 16,162    
|                                                                                   | Share based payments                                                                          |                                   |          
|                                                                                   | Pension liability                                                                             |                                   | (9,611    
|                                                                                   | Provision for deferred income taxes                                                           |                                   | 64,600    
|                                                                                   | Profit on the disposal of equity investments                                                  |                                   | (193      
|Changes in assets and liabilities                                                  |                                                                                               |                                   |           
|                                                                                   | Trading assets and derivative instruments                                                     |                                   | (3,202,390
|                                                                                   | Accrued interest receivable                                                                   |                                   | 41,314    
|                                                                                   | Other assets                                                                                  |                                   | (121,069  
|                                                                                   | Accounts payable, accrued expenses and other liabilities                                      |                                   | 750,390   
|                                                                                   | Insurance reserves                                                                            |                                   | 23,953    
|                                                                                   |                                                                                               |                                   |           
|                                                                                   | Cash flows provided by/(used in) operating activities from continuing operations              |                                   | (1,788,310
|                                                                                   | Cash flows provided by/(used in) operating activities from discontinued operations            |                                   | 48,878    
|Cash Flows from Investing Activities                                               |                                                                                               |                                   |           
|                                                                                   | Activities in available-for-sale securities:                                                  |                                   |           
|                                                                                   |                                                                                               | Purchases                         |           
|                                                                                   |                                                                                               | Sales proceeds                    |           
|                                                                                   |                                                                                               | Maturities, prepayments and calls |           
|                                                                                   | Activities in held-to-maturity securities:                                                    |                                   |           
|                                                                                   |                                                                                               | Maturities, prepayments and calls |           
|                                                                                   |                                                                                               | Purchases                         |           
|                                                                                   | Acquisition of subsidiary companies net of cash acquired and increase of controlling interest |                                   | (34,042   
|                                                                                   | Sale of subsidiaries                                                                          |                                   |           
|                                                                                   | Purchases of premises and equipment                                                           |                                   | (117,669  
|                                                                                   | Proceeds from sales of premises and equipment                                                 |                                   | 104,154   
|                                                                                   | Net proceeds from disposals, acquisitions and dividends received from equity investments      |                                   | 5,733     
|                                                                                   | Net cash provided by (used in):                                                               |                                   |           
|                                                                                   | Deposits with central bank                                                                    |                                   | (793,615  
|                                                                                   | Loan origination and principal collections                                                    |                                   | (4,980,924
|                                                                                   | Securities purchased under agreements to resell                                               |                                   | 1,277,725 
|                                                                                   | Interest bearing deposits with banks                                                          |                                   | 3,520,482 
|                                                                                   | Money market investments                                                                      |                                   | (29,050   
|                                                                                   | Other                                                                                         |                                   |          
|                                                                                   |                                                                                               |                                   |           
|Cash flows used in investing activities from continuing operations                 |                                                                                               | (1,288,149                        | )         
|Cash flows provided by/(used in) investing activities from discontinued operations |                                                                                               | (72,821                           | )         

The accompanying notes are an integral part of these consolidated financial statements.

F-9

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

|                                                                                   |                                                                                     | Year ended December 31, |           
|---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------------------- | ----------
|
|
|Cash flows from Financing Activities:                                              |                                                                                     |                         |           
|                                                                                   | Proceeds from issuance of long-term debt                                            |                         | 513,220   
|                                                                                   | Principal repayments and retirements of long-term debt                              |                         | (9,526    
|                                                                                   | Proceeds from issuance of common stock                                              |                         |          
|                                                                                   | Treasury stock purchased                                                            |                         | (26,567   
|                                                                                   | Proceeds from sales of treasury stock                                               |                         | 331,022   
|                                                                                   | Other                                                                               |                         | 36,344    
|                                                                                   | Dividends paid                                                                      |                         | (193,248  
|                                                                                   | Net cash provided by/(used in):                                                     |                         |           
|                                                                                   | Deposits                                                                            |                         | 6,570,907 
|                                                                                   | Securities sold under agreements to repurchase                                      |                         | (3,402,190
|                                                                                   | Other borrowed funds                                                                |                         | 131,056   
|                                                                                   |                                                                                     |                         |           
|Cash flows provided by/(used in) financing activities from continuing operations   |                                                                                     | 3,951,018               |           
|Cash flows provided by/(used in) financing activities from discontinued operations |                                                                                     | (4,608                  | )         
|                                                                                   | Effect of exchange rate change on cash and due from banks                           |                         | 13,470    
|Net increase in cash and due from banks                                            |                                                                                     | 859,478                 |           
|Cash and due from banks at beginning of year                                       |                                                                                     | 703,408                 |           
|                                                                                   |                                                                                     |                         |           
|Cash and due from banks at end of year                                             |                                                                                     | 1,562,886               |           
|Cash and due from banks at end of year (discontinued operations)                   |                                                                                     | (51,914                 | )         
|                                                                                   |                                                                                     |                         |           
|Cash and due from banks from continuing operations at end of year                  |                                                                                     | 1,510,972               |           
|                                                                                   |                                                                                     |                         |           
|Supplemental Disclosure of Cash Flow Information:                                  |                                                                                     |                         |           
|Cash paid for:                                                                     |                                                                                     |                         |           
|                                                                                   | Income taxes                                                                        |                         | 154,445   
|                                                                                   | Interest                                                                            |                         | 848,385   
|                                                                                   | Supplemental schedule of non cash investing and financing activities:               |                         |           
|                                                                                   | Issuance of common stock to effect the capitalization of additional paid-in capital |                         | 100,979   

The accompanying notes are an integral part of these consolidated financial statements.

F-10

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NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:    ORGANIZATION

The National Bank of Greece S.A. (the "Bank") was incorporated in the Hellenic Republic in 1841. The National Bank of Greece S.A. and subsidiaries
(the "Group") is involved in diversified financial services activities including retail and commercial banking, global investment management, investment banking, insurance, investment activities and
securities trading. The Group's non-financial service activities include hotels, warehouse management and real estate investments. The Group operates primarily in Greece, but also has
operations in South East Europe, Turkey and Africa.

NOTE 2:    REPORTING CURRENCY AND TRANSLATION INTO US DOLLARS

Financial statements for the Group as of December 31, 2007, are expressed in Euro (EUR). The translation of EUR amounts into US dollar amounts is
presented solely for the convenience of the reader and should not be construed as representations that the amounts stated in EUR have been or could have been or could be now or at any time in the
future converted into US dollars at this or any other rate of exchange. The exchange rate used for the purpose of this disclosure is the noon buying rate in New York City for cable transfers in
foreign currencies, as certified for customs by the Federal Reserve Bank of New York on April 30, 2008 which was EUR 0.6423 to USD 1.00 (EUR 0.6793 to USD 1.00 on
December 31, 2007).

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies followed by the Group in preparing these financial statements.

Principles of consolidationThe consolidated financial statements of the Group include the accounts of the Bank and its direct
and indirect subsidiaries. The Bank's subsidiaries are entities in which it holds, directly or indirectly, more than 50% of the voting rights or where it exercises control, for entities in which the
equity holders have substantive voting interests. Effective December 31, 2003, the Group also consolidates variable interest entities (VIEs) where the Group is the primary beneficiary in
accordance with Financial Accounting Standards Board ("FASB") Interpretation (FIN) No. 46 "Consolidation of Variable Interest Entities an interpretation of ARB No 51" ("FIN 46"), as
revised. The effects of inter-company transactions and balances have been eliminated.

Options
over minority interest which are not free standing are disclosed in note 4.

The
excess of the cost of acquisition of the investments and the Group's equity in the investees underlying net assets represents purchased goodwill. Equity method investment goodwill is
not amortized but all equity investments are reviewed for impairment annually.

Basis of presentationThe accounting records of the Group have been maintained in accordance with the provisions of the Greek
Company Law, the Greek Banking Chart of Accounts, the Greek Books and Records Code and the Bank of Greece regulations (collectively, "Greek GAAP"), except for foreign subsidiaries which maintain their
accounting records in accordance with the legislation and regulations of the country in which they operate. Necessary adjustments have been made, for financial reporting purposes, in order to conform
with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Foreign currency translationAssets, liabilities and operations of foreign branches and subsidiaries are recorded based on the
functional currency of each entity. The functional currency is the local currency for the majority of the foreign operations. The assets, liabilities and equity are translated, for consolidation
purposes, from the other local currencies to the reporting currency, EUR, at current

F-11

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

exchange
rates. The resulting gains or losses are reported as a component of other comprehensive income and losses within shareholder's equity. Transactions executed in other than local currencies are
first translated into the local reporting currency. Any related currency exchange adjustments are included in income prior to any translation.

Statement of cash flowsFor purposes of the consolidated statements of cash flows, cash and cash equivalents are defined as
those amounts included in the balance sheet caption "Cash and due from banks".

Securities: Trading, Available-for-Sale ("AFS"), Held-to-Maturity ("HTM"), Money market
investmentsDebt securities are classified as trading, available for sale or held to maturity, based on management's intention on the date of purchase. Equity
securities are classified as trading or available for sale. Debt securities which management has the positive intent and ability to hold to maturity are classified as
held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of resale in the near term are classified
as trading instruments and are stated at fair value with realized and unrealized gains and losses included in net trading profit or loss. All other debt and equity securities are classified as
available for sale and carried at fair value with net unrealized gains and losses included in accumulated other comprehensive income on a net of tax basis. Interest and dividends on securities,
including amortization of premiums and accretion of discounts are included in interest income.

Fair
value is generally based on quoted market prices. If quoted market prices are not available, fair values are estimated based on dealer quotes, pricing models, discounted cash flow
analysis or quoted prices for instruments with similar characteristics.

Individual
held-to-maturity and available-for-sale securities with declines to their fair values below their cost that are other than
temporary are written down to their fair value on an individual security basis. The related write-downs are included in earnings as realized losses. Gains and losses on the sale of
available-for-sale securities are recorded on the trade date and are calculated using the average cost method.

Money
market investments include treasury bills that are held for short term liquidity management purposes and whose fair value approximates their carrying amount.

Equity method investmentsEquity investments in which the Group exercises significant influence but does not control, are
initially recorded at cost and the carrying amount of the investments is adjusted to recognize the Group's share of the earnings or losses of investees after the date of acquisition. The amount of the
adjustment, after elimination of any intercompany gains and losses and impairment of goodwill, if any, is included in the determination of the Group's net income. Dividends received by the Group from
its equity method investments reduce the carrying amount of those investments.

Loans and leasesLoans are included at their outstanding unpaid principal balances adjusted for charge-offs, the
allowance for loan losses, and any deferred fees or costs on originated loans or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance.
Discounts and premiums are amortized to income using the interest rate method.

Loan
origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment to yield of the related loans. There are no loans that have been originated
which are intended for sale in the secondary market.

F-12

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loans
include aggregate rentals on lease financing transactions and residual values net of related unearned income. Lease financing transactions represent direct financing leases.
Unearned income is
amortized under a method that results in an approximate level rate of return when related to the unrecovered lease investment.

Loans
acquired in a purchase business combination with evidence of credit quality deterioration since origination, for which it is probable at purchase that the Group will be unable to
collect all contractually required payments are accounted for under AICPA Statement of Position 03-3, "Accounting for Certain Loans or Debt Securities Acquired in a Transfer"
(SOP 03-3). SOP 03-3 addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investor's initial
investment in loans acquired in a transfer if those differences are attributable, at least in part, to credit quality. SOP 03-3 requires impaired loans to be recorded at fair value
and prohibits "carrying over" or the creation of valuation allowances in the initial accounting of loans acquired in a transfer that are within the scope of this SOP. Under
SOP 03-3, the excess of cash flows expected at purchase over the purchase price allocated, is recorded as interest income over the life of the loan.

Non-accruing loansIn general, the accrual of interest on commercial loans is discontinued at the time the loan is
90 days delinquent unless the credit is well secured and in process of collection. Residential real estate loans are typically placed on non-accrual at the time the loan is
180 days delinquent in Greece and 90 days abroad. Credit card loans, other unsecured personal credit lines and certain consumer finance loans are typically placed on
non-accrual basis no later than the date upon which they become 100 days delinquent. In all cases, loans are placed on non-accrual, or written-off at an
earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or written-off is
reversed against interest income.

The
interest on these loans is accounted for on the cash-basis, in accordance with Statement of Financial Accounting Standards ("SFAS") No. 118 Accounting by Creditors
for Impairment of a LoanIncome Recognition and Disclosures ("SFAS 118"), until qualifying for return to accrual. Loans are returned to accrual status when all the principal and
interest amounts contractually due are reasonably assured of repayment within a reasonable time frame and when the borrower has demonstrated payment performance of cash or equivalents for a minimum of
six months.

Allowance for loan lossesThe allowance for loan losses is management's estimate of probable incurred loan losses in the
lending portfolios. Additions to the allowance for loan losses are made by charges to the provision for loan losses. Credit exposures deemed to be uncollectible are charged against the allowance for
loan losses. Recoveries of amounts previously charged as uncollectible are credited to the allowance for loan losses.

The
Group performs periodic and systematic detailed reviews of its lending portfolios to identify inherent risks and to assess the overall collectability of those portfolios. The
allowance on certain homogeneous loan portfolios, which generally consist of consumer and mortgage loans, is based on aggregated portfolios of homogeneous loans' evaluations, generally by loan type.

Loss
forecast models are utilized for portfolios of homogeneous loans which consider a variety of factors including, but not limited to, historical loss experience, anticipated defaults
or foreclosures based on portfolio trends, delinquencies and credit scores, and expected loss factors by loan type. The remaining loan portfolios are reviewed on an individual loan basis.

F-13

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Under
Greek regulations, non-performing loans cannot be written off until legal remedies for recovery, which can be a very lengthy process, have been exhausted. Historical
loss amounts include both amounts actually written off and amounts that are expected to be written off, but for which not all legal remedies for recovery have been fully exhausted.

Loans
subject to individual reviews are analyzed and segregated by risk according to the Group's internal risk rating scale. These risk classifications, in conjunction with an analysis
of historical loss experience, current economic conditions and performance trends within specific portfolio segments, and any other pertinent information (including individual valuations on
non-performing loans in accordance with SFAS 114 "Accounting by Creditors for Impairment of a Loan") result in the estimation allowances for loan losses. If necessary, an allowance
for loan losses is established for individually impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Group will be unable to collect all
amounts due, including principal and interest, according to the contractual terms of the agreement.

Once
a loan has been identified as individually impaired, management measures impairment in accordance with SFAS 114. Individually impaired loans are measured based on the present
value of payments expected to be received, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral. If the recorded investment in impaired
loans exceeds the measure of estimated fair value, a specific allowance is established as a component of the allowance for loan losses.

Due
to the subjectivity involved in the determination of the unallocated portion of the allowance for loan losses, the relationship of the unallocated component to the total allowance
for loan losses may fluctuate from period to period. Management evaluates the adequacy of the allowance for loan losses based on the combined total of the allocated and unallocated components.

Goodwill, software and other intangiblesNet assets of companies acquired in purchase transactions are recorded at fair value
at the date of the acquisition. As such, the historical cost basis of individual assets and liabilities are adjusted to reflect their fair value. Identified intangibles are amortized on a
straight-line basis over the period benefited. Goodwill is not amortized,
but is reviewed for potential impairment at least on an annual basis or if events or circumstances indicate a potential impairment more frequently, at the reporting unit level. The impairment test is
performed in two phases. The first step of the goodwill impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting
unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, an additional procedure must
be performed. That additional procedure compares the implied fair value of the reporting unit's goodwill, as defined in SFAS 142 "Goodwill and Other Intangible Assets", with the carrying amount
of that goodwill. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. Intangible assets subject to amortization are evaluated for
impairment in accordance with SFAS 144 "Accounting for the Impairment or Disposal of Long-Lived Assets" if events and circumstances indicate a possible impairment. There were no
events or changes in circumstances in 2007, 2006, and 2005 that indicated the carrying amounts of our intangibles may not be recoverable. Intangible assets are amortized using an estimated range of
anticipated lives, which is 3 to 12 years for software and 6 to 11 years for intangibles arising on acquisitions such as customer relationships and core deposits. Trade names have
indefinite useful lives.

F-14

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Premises and equipmentTangible fixed assets, including buildings are stated at cost less accumulated depreciation, except for
land, which is stated at cost. Depreciation is provided on a straight-line depreciation basis over the estimated useful lives of individual assets and classes of assets. Maintenance,
repairs and minor alterations are expensed as incurred.

Long-lived
assets that are held, including those that are to be disposed of, are evaluated periodically for impairment when events or changes in circumstances indicate that
the carrying amount may not be recoverable. Impairment is evaluated by determining if the difference between the expected undiscounted future cash flows of a long-lived asset is lower than
its carrying value. In event of impairment, the Group recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset as measured using a discounted cash
flow analysis. The impairment loss, if any, is reflected in non-interest expense.

Special purpose financing entitiesThe Group is involved with special-purpose entities (SPEs) in the normal course of
business. The primary uses of SPEs are to obtain sources of liquidity for the Group. SPEs used by the Company are accounted for as Variable Interest Entities (VIEs).

VIEs
are entities defined in FIN 46-R as entities which either have a total equity investment that is insufficient to permit the entity to finance its activities
without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest (i.e., ability to make significant decisions through
voting rights, right to receive the expected residual returns of the entity, and obligation to absorb the expected losses of the entity). Investors that finance the VIE through debt or equity
interests, or other counterparties that provide
other forms of support, such as guarantees, or subordinated fee arrangements, are variable interest holders in the entity. The variable interest holder, if any, that will absorb a majority of the
entity's expected losses, receive a majority of the entity's expected residual returns, or both, is deemed to be the primary beneficiary and must consolidate the VIE. Consolidation under
FIN 46-R is based on expected losses and residual returns. Consolidation of a VIE is determined based primarily on variability generated in scenarios that are considered most likely
to occur, rather than based on scenarios that are considered more remote. Certain variable interests may absorb significant amounts of losses or residual returns contractually, but if those scenarios
are considered very unlikely to occur, they may not lead to consolidation of the VIE.

All
of these facts and circumstances are taken into consideration when determining whether the Company has variable interests that would deem it the primary beneficiary and, therefore,
require consolidation of the related VIE.

For
additional information on other special purpose financing entities, see note 26 to the Consolidated Financial Statements

Income taxesThere are two components of income tax expenses: current and deferred. Current income tax expense approximates
cash to be paid or refunded for taxes for the applicable period. The company treats interest and penalties on income taxes as a component of income tax expense.

Deferred
income tax assets and liabilities are determined using the asset and liability (or balance sheet) method based on enacted income tax rates/laws expected to apply upon reversal.
Under this method, the net deferred tax asset or liability is determined based on the tax effects of the differences between the book and tax bases of the balance sheet assets and liabilities. The
impact on changes in tax laws and rates are recognized in their entirely within tax expense on continuing operations in the period that includes the date of enactment in the respective jurisdiction.

F-15

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recognition
of deferred tax assets is based on management's belief that it is more likely than not that the tax benefit associated with certain temporary differences, such as tax
operating loss carry forward and tax credits, will be realized, based on all available evidence. A valuation allowance is recorded to reduce the amount of the deferred tax assets to that amount that
is at least more likely than not to be realized.

The
Group does not recognize in its financial statements tax benefits for tax positions unless it has met the recognition and measurement principles contained in FASB Interpretation
No. 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" (FIN 48). Benefits can only be recognized if it is "more likely than not" that
the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. In this evaluation, the Group assumes that the position
(1) will be examined by a taxing authority that has full knowledge of all relevant information and (2) will be resolved in the court. If the recognition threshold is not met, no benefit
is recognized, even when the Group believes that certain amount of benefit will ultimately be realized. Tax benefits for positions meeting the recognition criteria, are recognized in the financial
statements in the amount that is at least more likely than not to be sustained upon settlement with the tax authorities.

Insurance operationsInsurance includes both life and general (property and casualty) insurance underwriting operations.
Income and expenses from insurance operations are included in other non-interest income and expenses.

Premium
revenues from life insurance policies (long-duration contracts) are recognized as revenue as and when they become due from policyholders. Variable costs incurred in
the acquisition of such policies are capitalized and expensed proportionately with the recognition of premium revenues. Premium income from property and casualty policies (short-duration contracts) is
recognized over the life of the policy. Income and costs on policies, which relate to subsequent periods are deferred and recognized in the period to which they relate. Claims relating to property and
casualty policies are recognized as and when these become known based on the information available.

Insurance
reserves for expected costs relating to life insurance policies are accrued over the current and expected renewal periods of the contracts. The present value of estimated
future policy benefits payable, less the present value of estimated future net premia to be collected is estimated using approved actuarial methods that use assumptions about future investment yields,
mortality, expenses, options and guarantees, morbidity and termination rates at the time of inception of insurance contracts. Original assumptions are adjusted to reflect actual experience and any
premium deficiency estimated is charged off to income for the period. Revised assumptions reflect estimates of future monetary inflation, medical inflation, the swap rate of bonds as at the end of
each reporting period and recent experience concerning risk factors mentioned above. An appropriate discount factor is used.

Insurance
reserves for property and casualty insurance include, apart from an unearned premium reserve, a provision for outstanding claims and a provision for claims incurred but not
reported ("IBNR"). Loss estimates rely on observations of loss experience for similar historic events that relate to cumulative gross paid claim amount, settled claim amount, incurred claim amount and
claim number developments. Such observations are periodically revised and any premium deficiency is charged to income for the period. Projections are based on historical development patterns. The
development ratios are adjusted in a small number of cases to remove the effect of claim developments, which

F-16

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

appear
to be of an exceptional nature. Projections of reinsurance recoveries are also undertaken. Allowance is made for claim adjustment expenses and an appropriate discount factor is used.

DerivativesAll derivatives are recognized on the consolidated balance sheet at fair value and recorded as derivative assets
or liabilities. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models,
discounted cash flow analysis or quoted prices for instruments with similar characteristics. The Group designates a derivative as held for trading or hedging purposes when it enters into a derivative
contract. Derivatives designated as held for trading activities are included in derivative assets or liabilities with changes in fair value reflected in net trading profit or loss.

The
Group primarily manages interest rate and foreign currency exchange rate sensitivity through the use of derivatives.

The
Group occasionally purchases or issues financial instruments containing embedded derivatives. The embedded derivative is separated from the host contract and carried at fair value if
the economic characteristics of the derivative are not clearly and closely related to the economic characteristics of the host contract.

Other assets and other liabilitiesOther assets includes, among other items, assets acquired through foreclosure proceedings,
accounts receivable of non-financial services sector subsidiaries, deferred tax assets and taxes withheld.

Other
liabilities includes, among other items, accrued expenses and deferred income, deferred tax liabilities, accrued interest and commissions, pension liabilities, dividends payable
and other accounts payable.

Discontinued operationsA discontinued operation is a component of the Group that comprises operations and cash flows that can
be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity that has been disposed of or is classified as held for sale. Classification as discontinued
operations occurs upon disposal or when the operations meet the criteria
to be classified as held for sale. Discontinued operations are presented on the face of the income statement.

Dividend policyThe Bank, on the basis of its statutory financial statements prepared in accordance with International
Financial Reporting Standards ("IFRS") as endorsed by the EU, pays dividends out of:



Each
year the Bank is required, by Greek Law 2190/1920, to declare and distribute a minimum dividend out of its net profits if any, equal to 35% of the net profits for the year less
statutory reserves, any profits resulting from the sale of equity participations that represent at least 20% of the paid up share capital of a subsidiary company in which the Bank has held an equity
participation for at least ten years and unrealized net gains from financial instruments.

Any
distribution of the remainder of the distributable profits must be approved by a "General Meeting of the Shareholders" with the ordinary quorum and majority voting requirements. No

F-17

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

distribution
can be effected if, on the closing date of the last financial year, the total shareholders' equity is, or will become after that distribution, lower than the sum of share capital and the
reserves, the distribution of which is prohibited by Greek law or the Bank's Articles of Association.

A
majority representing at least 65% of the paid-up share capital may vote to waive this. The undistributed dividend (up to 35% minimum dividend) must then be transferred to
a special reserve which must, within four years following the General Meeting, be distributed in the form of a stock dividend. Furthermore, a majority representing at least 70% of the Bank's
paid-up capital may vote to waive this stock dividend.

Normally,
dividends are declared and paid in the year subsequent to the reporting period. Up to and including the fiscal year ended December 31, 2005, dividends were accounted for
once declared.
Beginning in 2006, the Group records a liability related to the mandatory minimum dividend payment computed as 35% of the net profits for the year less unrealized gains.

Resale and repurchase agreementsThe Group enters into securities purchases under agreements to resell
("resale agreements") and securities sales under agreements to repurchase ("repurchase agreements") of substantially identical securities. Resale agreements and repurchase agreements are generally
accounted for as secured lending and secured borrowing transactions, respectively.

The
amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the balance sheet at the amount advanced or borrowed plus accrued
interest. The market value of these securities is monitored and the level of collateral is adjusted accordingly.

Share-based payment transactionsThe Bank has approved Group-wide share options plans for
the executive members of the Board of Directors, management and staff of the Group. The fair value of the employee services received in exchange for the grant of the options is recognized as a
compensation cost, with the corresponding credit recognized in equity. The total amount to be expensed over the requisite period is determined by reference to the fair value of the share options
granted. The fair value of the options is determined using an option-pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the options, the
expected volatility of and the expected dividends on the underlying stock , and the risk-free interest rate over the expected life of the option.

When
the options are exercised and new shares are issued, the proceeds received net of any transaction costs are credited to paid-in capital.

Accumulated other comprehensive incomeThe Group records unrealized gains and losses on AFS
Securities, unrecognized actuarial gains and losses, transition obligation and prior service costs on Pension and Postretirement plans, foreign currency translation adjustments, and related hedges of
net investments in foreign operations in Accumulated OCI, net of tax. Gains or losses on derivatives accounted for as cash flow hedges are reclassified to Net Income when the hedged transaction
affects earnings. Gains and losses on AFS Securities are reclassified to Net Income as the gains or losses are realized upon sale of the securities. Other-than-temporary
impairment charges are reclassified to Net Income at the time of the charge. Translation gains or losses on foreign currency translation adjustments are reclassified to Net Income upon the substantial
sale or liquidation of investments in foreign operations.

F-18

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Treasury stockThe Group parent company's common stock, owned by the Group entities, is considered to be treasury stock and is
recorded at cost. Gains and losses on disposal of treasury stock are recorded in equity.

Earnings per shareBasic earnings per share is computed by dividing income available to common shareholders by the weighted
average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts were exercised and is computed
after giving consideration to the weighted average dilutive effect of these common stock equivalents.

For
the purpose of the earnings per share calculations, shares owned by entities within the Group are not included in the calculations of the denominators

Use of estimatesThe preparation of consolidated financial statements in conformity with US GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management are discussed in the notes as
applicable.



In May 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 162, "The Hierarchy of Generally
Accepted Accounting Principles". The new standard is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles (GAAP) for nongovernmental entities. Statement 162 is effective 60 days
following the SEC's approval of the Public Company Accounting Oversight Board Auditing amendments to AU Section 411, "The Meaning of Present Fairly in Conformity with Generally Accepted
Accounting Principles". Management does not expect that the adoption of SFAS 162 will have a material impact on the consolidated statements of income and consolidated balance sheets.

In
March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 161, "Disclosures about Derivative Instruments and
Hedging Activities-an amendment of SFAS 133" (SFAS 161), which amends SFAS 133 and requires enhanced disclosures about derivative instruments and hedging activities.
The Statement is effective for fiscal years and interim periods beginning after November 15, 2008. Management is currently evaluating
the impact of the adoption of SFAS 161 on the consolidated statements of income and consolidated balance sheets.

In
December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 160, "Non-controlling Interests in
Consolidated Financial Statements-an amendment of ARB No.51" (SFAS 160), which amends ARB 51 to establish accounting and reporting standards for the non-controlling
interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that
should be reported as equity in the consolidated financial statements. This Statement also changes the way the consolidated income statement is presented. It requires consolidated net income to be
reported at amounts that include the amounts attributable to both the

F-19

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

parent
and the non-controlling interest. SFAS 160 establishes a single method of accounting for changes in a parent's ownership interest in a subsidiary that do not result in
deconsolidation and treats all of those transactions as equity transactions if the parent retains its controlling financial interest in the subsidiary. A parent recognizes a gain or loss in net income
when a subsidiary is deconsolidated. A parent deconsolidates a subsidiary as of the date the parent ceases to have a controlling financial interest in the subsidiary. The Statement is effective for
fiscal years beginning on January 1, 2009 and earlier adoption is prohibited. Management is currently evaluating the impact of the adoption of SFAS 160 on the consolidated statements of
income and consolidated balance sheets.

In
December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141 (Revised 2007) (SFAS 141R), "Business
Combinations" which replaces FASB Statement No. 141, "Business Combinations". This Statement retains the fundamental requirements in SFAS 141 that the acquisition method of accounting be
used for all business combinations and for an acquirer (i.e. the entity that obtains control of one or more businesses at the acquisition date) to be identified for each business combination.
It requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values
as of that date. The goodwill is recognized as of the acquisition date, measured as a residual, as the excess of the consideration transferred plus the fair value of any non-controlling
interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. When the total acquisition-date fair value of the identifiable net assets
acquired exceeds the fair value of the consideration transferred plus any non-controlling interest in the acquiree, the acquirer should recognize that excess in earnings as a gain
attributable to the acquirer (bargain purchase). This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after December 15, 2008. Management is currently evaluating the impact of the adoption of SFAS 141R on the consolidated statements of income and consolidated
balance sheets.

In
December 2007, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 110 (SAB 110). SAB 110 clarifies that the SEC staff will continue
to accept, under certain circumstances, the use of the "simplified" method for estimating the expected term of "plain vanilla"
share options, as discussed in SAB No. 107, beyond December 31, 2007. SAB 110 is effective from January 1, 2008. Management does not expect that the adoption of
SAB 110 will have a material impact on the consolidated statements of income and consolidated balance sheets.

In
November 2007, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 109 "Written loan commitments recorded at fair value through earnings"
(SAB 109). SAB 109 clarifies that consistent with the guidance in SFAS 156 "Accounting for servicing of Financial Assets" and SFAS 159 "The Fair Value Option for Financial
Assets and Liabilities", the expected net future cash flows related to the associated servicing of the loan should be included in the measurement of all written loan commitments that accounted for at
fair value through earnings. SAB 109 is effective from January 1, 2008. Management does not expect that the adoption of SAB 109 will have a material impact on the consolidated
statements of income and consolidated balance sheets.

In
February 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 159, "The Fair Value Option for Financial Assets
and Financial Liabilities" (SFAS 159), which allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities
on a contract-by-contract basis. Subsequent changes in fair value of these financial assets and liabilities would be recognized in earnings

F-20

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3:    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

when
they occur. SFAS 159 further establishes certain additional disclosure requirements. SFAS 159 is effective for the Group's financial statements for the year beginning on
January 1, 2008. The Group elected to apply the fair value option for certain fixed rate loans and a debt issue. The net effect, net of tax, on January 1, 2008, opening retained earnings
was a decrease of EUR 45 million.

In
September 2006, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements" (SFAS 157). SFAS 157 defines fair value,
establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. SFAS 157 defines fair value as the exchange price that would be received for
an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the
measurement date. SFAS 157 is effective for the Group's financial statements for the year beginning on January 1, 2008. The adoption of SFAS 157 did not have a material impact on
the consolidated statements of income and consolidated balance sheets.

In
July 2006, the FASB released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" (FIN 48).
FIN 48 clarifies the accounting and reporting for income taxes where interpretation of the tax law may be uncertain. FIN 48 prescribes a comprehensive model for the financial statement
recognition, measurement, presentation and disclosure of income tax uncertainties with respect to positions taken or expected to be taken in income tax returns. The Group adopted FIN 48 on
January 1, 2007. The effect of adopting FIN 48 is discussed in Note 31.

In
March 2006, the FASB issued Statement of Financial Accounting Standards (SFAS) No.156, "Accounting for Servicing of Financial Assets-an amendment to FASB Statement
No. 140" ("SFAS 156"), which permits but does not require, an entity to account for one or more classes of servicing rights at fair value, with changes in fair value recorded in
Consolidated Statement of Income. The Group adopted SFAS 156 on January 1, 2007. The adoption of this Standard did not have a material impact on the consolidated statements of income and
consolidated balance sheets.

NOTE 4:    MERGERS, ACQUISITIONS, DISPOSALS AND NEW ENTITIES ESTABLISHED



F-21

---





NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 4:    MERGERS, ACQUISITIONS, DISPOSALS AND NEW ENTITIES ESTABLISHED (Continued)





F-22

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 4:    MERGERS, ACQUISITIONS, DISPOSALS AND NEW ENTITIES ESTABLISHED (Continued)



2005

2006(EUR in thousands)Proforma NBG GroupNet Interest Income before provision for loan losses

2,047,249

2,392,391Provisions for loan losses

(274,226
)
(408,074
)Net Interest Income after provision for loan losses

1,773,023

1,984,317Non-interest income

1,788,493

2,001,409Non-interest expense

(2,577,635
)
(2,949,821
)Income Tax expense from continuous operations

(340,521
)
(218,751
)Income from disccontinued operations, net of tax

28,283

58,187Net income

671,643

875,341Proforma EPSbasic and diluted (euro)

1,46

1,65




F-23

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 4:    MERGERS, ACQUISITIONS, DISPOSALS AND NEW ENTITIES ESTABLISHED (Continued)



F-24

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



NOTE 5:    CASH AND DUE FROM BANKS

Cash and due from banks at December 31, comprised:

|                                  |  | 2006      |  | 2007     
|--------------------------------- |  | --------- |  | ---------
|
|Current accounts with banks       |  | 142,911   |  | 535,059  
|Cash and similar items            |  | 797,012   |  | 890,687  
|Current account with central bank |  | 885,296   |  | 2,771,236
|Deposits accounts                 |  | 10,774    |  | 14,328   
|Other                             |  | 27,981    |  | 15,458   
|                                  |  |           |  |          
|Total                             |  | 1,863,974 |  | 4,226,768
|                                  |  |           |  |          

The Bank and the other banks of the Group are required to maintain a current account with the respective central banks of their countries, to
facilitate interbank transactions with the central banks, its member banks and other financial institutions through the Trans-European Automated Real-Time Gross Settlement Express Transfer
system (TARGET).

NOTE 6:    DEPOSITS WITH CENTRAL BANK

The central bank is the primary regulator of depository institutions in Greece. The central bank requires all banks established in Greece to maintain deposits
equal to 2% of total customer deposits as these are defined by the European Central Bank ("ECB"). These deposits bear interest at the refinancing rate as set by the ECB (4% at December 31,
2007).

NOTE 7:    SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

The Group enters into purchases of securities under agreements to resell substantially identical securities. These agreements are classified as lending
arrangements. Agreements with third parties specify the Group's rights to request collateral, based on its monitoring of the fair value of the underlying securities on a daily basis. Securities
accepted as collateral may be sold or repledged. As at December 31, 2006 and 2007, the Group has not sold or repledged any collateral.

NOTE 8:    INTEREST BEARING DEPOSITS WITH BANKS

Interest bearing deposits with banks at December 31, comprised:

|                               |  | 2006      |  | 2007     
|------------------------------ |  | --------- |  | ---------
|
|Placements in EUR              |  | 511,735   |  | 945,384  
|Placements in other currencies |  | 1,760,308 |  | 832,038  
|                               |  |           |  |          
|Total                          |  | 2,272,043 |  | 1,777,422
|                               |  |           |  |          
|Maturity analysis:             |  |           |  |          
|Up to 3 months                 |  | 2,012,337 |  | 1,595,149
|From 3 months to 1 year        |  | 232,916   |  | 116,657  
|Over 1 year                    |  | 26,790    |  | 65,616   
|                               |  |           |  |          
|Total                          |  | 2,272,043 |  | 1,777,422
|                               |  |           |  |          

F-25

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 9:    MONEY MARKET INVESTMENTS

Money market investments at December 31, comprised:

|                       |  | 2006    |  | 2007   
|---------------------- |  | ------- |  | -------
|
|Greek treasury bills   |  | 168,653 |  | 54,603 
|Foreign treasury bills |  | 60,955  |  | 131,726
|Other                  |  | 138,045 |  | 67,705 
|                       |  |         |  |        
|Total                  |  | 367,653 |  | 254,034
|                       |  |         |  |        

NOTE 10:    TRADING ASSETS

Fair value of debt and equity assets held for trading purposes at December 31, comprised:

|                                                                              |  | 2006      |  | 2007     
|----------------------------------------------------------------------------- |  | --------- |  | ---------
|
|Greek government bonds                                                        |  | 6,661,754 |  | 5,553,981
|Debt securities issued by other governments and public entities               |  | 110,724   |  | 248,920  
|Debt securities issued by foreign financial institutions                      |  | 38,264    |  | 135,548  
|Debt securities issued by Greek financial institutions incorporated in Greece |  | 104,056   |  | 142,066  
|Corporate debt securities issued by companies incorporated in Greece          |  | 239,756   |  | 71,601   
|Corporate debt securities issued by foreign companies                         |  | 106,233   |  | 355,563  
|Equity securities issued by companies incorporated in Greece                  |  | 74,546    |  | 86,689   
|Equity securities issued by foreign companies                                 |  | 17,364    |  | 25,106   
|Mutual fund units                                                             |  | 21,510    |  | 59,160   
|                                                                              |  |           |  |          
|Total                                                                         |  | 7,374,207 |  | 6,678,634
|                                                                              |  |           |  |          

Net unrealized gains/(losses) on trading instruments (debt and equity) of EUR 56,069 thousand, EUR (59,458) thousand and
EUR (23,866) thousand were included in earnings during 2005, 2006 and 2007, respectively.

NOTE 11:    FINANCIAL INSTRUMENTS MARKED TO MARKET THROUGH THE PROFIT AND LOSS

"Financial
instruments marked to market through the profit and loss" relates to a loan with an embedded derivative issued in August 2005 with a cost of
EUR 5,125,250 thousand that will mature in September 2037. This instrument was issued by the Bank and would otherwise have to be bifurcated under FAS 133, "Accounting for
Derivative Instruments and Hedging Activities". The Group elected to account for this instrument at fair value through the profit and loss under the provisions of FAS 155 "Accounting for
certain Hybrid Financial Instruments- an amendment of FASB statement 133 and 140" instead of separating the embedded derivative. The net effect on earnings from this instrument for 2007 and 2006 was a
gain of EUR 384,746 thousand and EUR 203,189 thousand respectively. The financial instrument is held by the Bank.

F-26

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12:    DERIVATIVES

The Group designates a derivative as held for trading or hedging purposes when it enters into a derivative contract. The designation may change based upon
management's reassessment and changing circumstances. Derivatives utilized by the Group include interest rate, cross currency interest rate and foreign exchange swaps, financial futures, outright
foreign exchange forwards and option contracts.

Interest-rate
swap transactions generally involve the exchange of fixed and floating-rate interest payment obligations over a prescribed period of time without
the exchange of the underlying principle amounts. Cross currency interest rate swaps generally involve the exchange of both interest and principal amounts in two different currencies over a prescribed
period of time. Foreign exchange swaps involve the exchange through simultaneous spot and forward foreign exchange transactions of principle amounts in two different currencies. Financial future
contracts are contracts in which the buyer agrees to purchase and the seller agrees to make delivery of a specific financial instrument at a predetermined price or yield. Outright foreign exchange
forward contracts are agreements to exchange at a specified future date, currencies of different countries at a specified rate. An option contract is an agreement that conveys to the purchaser the
right, but not the obligation, to buy or sell a quantity of a financial instrument, index, or currency at a predetermined rate or price during a period or at a time in the future. Option agreements
can be transacted on organized exchanges or directly between parties.

Credit risk associated with derivative activities

Credit risk associated with derivatives is measured as the net replacement cost should the counterparties with contracts in a gain position to the Group
completely fail to perform under the terms of those contracts assuming no recoveries of underlying collateral. In managing credit risk associated with its derivative activities, the Group deals
primarily with commercial banks, broker-dealers and corporations. In addition, the Group reduces credit risk by obtaining collateral based on individual assessment of counterparties. Required
collateral levels vary depending on the credit risk rating and the type of counterparty. Generally, the Group accepts collateral in the form of cash and other marketable securities.

A
portion of the derivative activity involves exchange-traded instruments. Exchange-traded instruments conform to standard terms and are subject to policies set by the exchange involved,
including
counterparty approval, margin requirements and security deposit requirements. Management believes the credit risk associated with these types of instruments is minimal.

The
following tables present the contract or notional amounts and the credit risk or fair value amounts at December 31, 2006 and 2007 of the Group's derivative asset and liability
positions held for trading and hedging purposes. These derivative positions are primarily executed in the over-the-counter market. The credit risk amounts presented below do
not consider the value of any collateral held.

F-27

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12:    DERIVATIVES (Continued)

Derivative Assets(1)

|                                   |  | 2006       |  | 2007   
|---------------------------------- |  | ---------- |  | -------
|
|
|Cross currency interest rate swaps |  | 643,865    |  | 113,531
|Financial futures                  |  | 2,193,310  |  | 30,578 
|Foreign exchange swaps             |  | 1,542,054  |  | 24,049 
|Forward rate agreements            |  | 12,300     |  | 14     
|Interest rate swaps                |  | 10,910,575 |  | 128,395
|Options                            |  | 2,625,199  |  | 14,655 
|Outright foreign exchange forwards |  | 828,707    |  | 13,791 
|                                   |  |            |  |        
|Total                              |  | 18,756,010 |  | 325,013
|                                   |  |            |  |        

Derivative Liabilities(1)

|                                   |  | 2006       |  | 2007   
|---------------------------------- |  | ---------- |  | -------
|
|
|Cross currency interest rate swaps |  | 976,474    |  | 73,138 
|Financial futures                  |  | 4,717,706  |  | 6,931  
|Foreign exchange swaps             |  | 3,689,267  |  | 98,763 
|Forward rate agreements            |  | 12,293     |  | 7      
|Interest rate swaps                |  | 9,899,256  |  | 211,930
|Options                            |  | 1,518,658  |  | 24,724 
|Outright foreign exchange forwards |  | 748,259    |  | 8,192  
|Other                              |  |           |  |       
|                                   |  |            |  |        
|Total                              |  | 21,561,913 |  | 423,685
|                                   |  |            |  |        

---

The average fair value of derivative assets for 2006 and 2007 were EUR 270,655 thousand and EUR 404,030 thousand,
respectively. The average fair value of derivative liabilities for 2006 and 2007 were EUR 365,704 thousand and EUR 769,327 thousand, respectively.

AssetLiability management activities

Interest rate and foreign exchange contracts are utilized in the Group's Asset Liability Management ("ALM") process. The Group maintains an overall interest rate
risk management strategy that incorporates the use of interest rate contracts to minimize significant unplanned fluctuations in earnings caused by interest rate volatility. As a result of interest
rate fluctuations, hedged fixed-rate assets and liabilities appreciate or depreciate in market value. Gains or losses on the derivative instruments that are linked to the hedged
fixed-rate assets and liabilities are expected to substantially

F-28

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12:    DERIVATIVES (Continued)

offset
this appreciation or depreciation. The Group uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign denominated assets and liabilities.

Fair value and net investment economic hedges

The Group uses various types of interest rate and foreign currency exchange rate derivative contracts to protect against changes in the fair value of its fixed
rate assets and liabilities due to fluctuations in interest rates and exchange rates. None of these derivatives has been designated as a hedge item, although the management of the Group believes that
they provide effective economic hedges.

The
Group also hedges its net investment in consolidated foreign operations with functional currencies other than the Euro using forward foreign exchange contracts. These derivatives do
not qualify for hedge accounting.

NOTE 13:    AVAILABLE-FOR-SALE SECURITIES

The amortized cost of available-for-sale securities and their approximate fair values at December 31, comprised:

|                                                                          |  | 2006     
|------------------------------------------------------------------------- |  | ---------
|
|
|Greek government bonds                                                    |  | 1,225,985
|Debt securities issued by other governments and public entities           |  | 1,626,818
|Corporate debt securities issued by companies incorporated in Greece      |  | 133,106  
|Corporate debt securities issued by companies incorporated outside Greece |  | 411,038  
|Equity securities issued by companies incorporated in Greece              |  | 213,953  
|Equity securities issued by companies incorporated outside Greece         |  | 33,926   
|Mutual Fund units                                                         |  | 470,387  
|                                                                          |  |          
|Total available-for-sale securities                                       |  | 4,115,213
|                                                                          |  |          

F-29

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 13:    AVAILABLE-FOR-SALE SECURITIES (Continued)

|
|

|                                                                          |  | 2007     
|------------------------------------------------------------------------- |  | ---------
|
|
|Greek government bonds                                                    |  | 1,306,507
|Debt securities issued by other governments and public entities           |  | 2,048,445
|Corporate debt securities issued by companies incorporated in Greece      |  | 100,505  
|Corporate debt securities issued by companies incorporated outside Greece |  | 490,046  
|Equity securities issued by companies incorporated in Greece              |  | 175,415  
|Equity securities issued by companies incorporated outside Greece         |  | 95,186   
|Mutual Fund units                                                         |  | 357,951  
|                                                                          |  |          
|Total available-for-sale securities                                       |  | 4,574,055
|                                                                          |  |          

As at December 31, 2006 and 2007, the Group did not hold any US Federal debt securities.

|                                                               |  | 2005    |   | 2006    |   | 2007    |  
|-------------------------------------------------------------- |  | ------- | - | ------- | - | ------- | -
|
|Gross realized gains on sales of available for sale portfolio  |  | 130,828 |   | 121,138 |   | 175,469 |  
|Gross realized losses on sales of available for sale portfolio |  | (11,305 | ) | (4,266  | ) | (45,653 | )
|                                                               |  |         |   |         |   |         |  
|Net realized gains on sales of available for sale securities   |  | 119,523 |   | 116,872 |   | 129,816 |  
|                                                               |  |         |   |         |   |         |  

The Group uses the average cost method in determining the cost of securities sold.

F-30

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 13:    AVAILABLE-FOR-SALE SECURITIES (Continued)

The
following table presents the current fair value and the associated unrealized losses of available-for-sale securities as at December 31, 2006. The
table also discloses whether these securities have had unrealized losses for periods less than 12 months or for 12 months or longer.

|                              |                                                                           | Less than 12 months |         | Over 12 months |         | Total |          
|----------------------------- | ------------------------------------------------------------------------- | ------------------- | ------- | -------------- | ------- | ----- | ---------
|
|
|Available-for-sale securities |                                                                           |                     |         |                |         |       |          
|                              | Greek government bonds                                                    |                     | 433,459 |                | (6,892  | )     | 658,577  
|                              | Debt securities issued by other governments and public entities           |                     | 53,080  |                | (1,137  | )     | 1,186,404
|                              | Corporate debt securities issued by companies incorporated in Greece      |                     | 100,749 |                | (2,314  | )     |         
|                              | Corporate debt securities issued by companies incorporated outside Greece |                     | 177,301 |                | (1,783  | )     | 56,379   
|                              | Equity securities issued by companies incorporated in Greece              |                     | 41,709  |                | (2,188  | )     | 4,846    
|                              | Equity securities issued by companies incorporated outside Greece         |                     | 19,951  |                | (381    | )     |         
|                              | Mutual Fund units                                                         |                     | 48,125  |                | (972    | )     |         
|                              |                                                                           |                     |         |                |         |       |          
|                              | Total available-for-sale securities                                       |                     | 874,374 |                | (15,667 | )     | 1,906,206
|                              |                                                                           |                     |         |                |         |       |          

The following table presents the current fair value and the associated unrealized losses of available-for-sale securities
as at December 31, 2007. The table also discloses whether these securities have had unrealized losses for periods less than 12 months or for 12 months or longer.

|                              |                                                                           | Less than 12 months |         | Over 12 months |         | Total |          
|----------------------------- | ------------------------------------------------------------------------- | ------------------- | ------- | -------------- | ------- | ----- | ---------
|
|
|Available-for-sale securities |                                                                           |                     |         |                |         |       |          
|                              | Greek government bonds                                                    |                     | 188,574 |                | (17,263 | )     | 921,792  
|                              | Debt securities issued by other governments and public entities           |                     | 364,458 |                | (3,014  | )     | 1,572,970
|                              | Corporate debt securities issued by companies incorporated in Greece      |                     | 11,982  |                | (18     | )     | 70,760   
|                              | Corporate debt securities issued by companies incorporated outside Greece |                     | 160,526 |                | (15,578 | )     | 132,637  
|                              | Equity securities issued by companies incorporated in Greece              |                     | 65,267  |                | (6,259  | )     | 19,013   
|                              | Equity securities issued by companies incorporated outside Greece         |                     | 258     |                | (117    | )     |         
|                              | Mutual Fund units                                                         |                     | 42,272  |                | (2,680  | )     | 23,107   
|                              |                                                                           |                     |         |                |         |       |          
|                              | Total available-for-sale securities                                       |                     | 833,337 |                | (44,929 | )     | 2,740,279
|                              |                                                                           |                     |         |                |         |       |          

F-31

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 13:    AVAILABLE-FOR-SALE SECURITIES (Continued)

The unrealized losses associated with debt securities are not considered to be other than temporary due to the fact that these unrealized losses
are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer. Additionally, the Group has the intent and ability to hold debt securities
for a period of time sufficient to recover all gross unrealized losses.

The
scheduled maturities of available-for-sale securities at December 31, 2007 were as follows:

|                           |  | Available-for-Sale Securities
|-------------------------- |  | -----------------------------
|
|
|Due in one year or less    |  | 599,220                      
|Due from one to five years |  | 1,952,916                    
|Due from five to ten years |  | 863,569                      
|Due after ten years        |  | 529,798                      
|                           |  |                              
|Total debt securities      |  | 3,945,503                    
|Other non debt securities  |  | 628,552                      
|                           |  |                              
|Total                      |  | 4,574,055                    
|                           |  |                              

NOTE 14:    EQUITY METHOD INVESTMENTS

The Group has investments that are accounted for using the equity method of accounting. The most significant of these investments was AGET Heracles
Cement Co. S.A. ("AGET"); a 26.00% owned, publicly traded (on the ATHEX) Greek company and a leading producer of cement and related
products. On April 19, 2007 the Group disposed of the investment in AGET at a price of EUR 17.40 per share for a total consideration of EUR 321.6 million.

Other
equity investments include Phosphate Fertilizers Industry S.A (24.23%), Larco Metallurgical S.A. (36.43%), Siemens Enterprise Communications S.A. (30.00%) and
Planet S.A. (31.18%).

F-32

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 14:    EQUITY METHOD INVESTMENTS (Continued)

The
summarized financial information below represents an aggregation of the Group's non-subsidiary investees.

|                                     |                              | 2005    |         | 2006   
|------------------------------------ | ---------------------------- | ------- | ------- | -------
|
|
|Equity method investments            |                              | 185,271 |         | 44,846 
|Revenue                              |                              | 609,081 |         | 736,408
|Gross profit                         |                              | 137,332 |         | 68,785 
|Net earnings                         |                              | 152,386 |         | 11,764 
|Group's equity in net earnings       |                              | 37,570  |         | (747   
|Dividends                            |                              | 7,392   |         | 2,523  
|% Holding as at December 31,         |                              | 26.00   | %       |        
|Balance Sheet data as at December 31 |                              |         |         |        
|                                     | Current assets               |         | 383,682 |        
|                                     | Non-current assets           |         | 651,418 |        
|                                     | Current liabilities          |         | 161,180 |        
|                                     | Non-current liabilities      |         | 87,316  |        
|                                     | Net assets                   |         | 786,604 |        
|                                     | Group's equity in net assets |         | 204,509 |        

|
|

|                                     |                              | 2007     
|------------------------------------ | ---------------------------- | ---------
|
|
|Equity method investments            |                              | 75,707   
|Revenue                              |                              | 1,110,999
|Gross profit                         |                              | 94,264   
|Net earnings                         |                              | 25,131   
|Group's equity in net earnings       |                              | 23,199   
|Dividends                            |                              | 3,438    
|Balance Sheet data as at December 31 |                              |          
|                                     | Current assets               |          
|                                     | Non-current assets           |          
|                                     | Current liabilities          |          
|                                     | Non-current liabilities      |          
|                                     | Net assets                   |          
|                                     | Group's equity in net assets |          

Included in "equity in earnings of investees" in the consolidated statement of income is EUR 5.4 million relating to the Group's
share in AGET's net earnings up to the date of disposal and the before tax gain on disposal of the investment in AGET of 131.5 million.

F-33

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 15:    LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans granted by the Group according to type of loan, which represents the Group's concentration of credit risk, at December 31, 2006 comprised:

|            |                                                            | 2006 |           
|----------- | ---------------------------------------------------------- | ---- | ----------
|
|
|Consumer:   |                                                            |      |           
|            | Residential mortgages                                      |      | 13,318,430
|            | Credit card                                                |      | 1,505,203 
|            | Auto financing                                             |      | 250,747   
|            | Installment, revolving credit and other                    |      | 2,957,806 
|            |                                                            |      |           
|            | Total consumer                                             |      | 18,032,186
|            |                                                            |      |           
|Commercial: |                                                            |      |           
|            | Industry and mining                                        |      | 2,640,360 
|            | Small scale industry                                       |      | 1,027,183 
|            | Trade                                                      |      | 4,079,807 
|            | Construction                                               |      | 556,814   
|            | Tourism                                                    |      | 261,679   
|            | Shipping and transportation                                |      | 1,047,846 
|            | Mortgage                                                   |      | 530,229   
|            | Public, municipalities and greater public sector companies |      | 1,465,205 
|            | Other                                                      |      | 2,507,644 
|            |                                                            |      |           
|            | Total commercial                                           |      | 14,116,767
|            |                                                            |      |           
|            | Total loans                                                |      | 32,148,953
|            | Unearned income                                            |      | 25,097    
|            |                                                            |      |           
|            | Loans, net of unearned income                              |      | 32,174,050
|            | Less: Allowance for loan losses                            |      | (906,318  
|            |                                                            |      |           
|            | Total Net Loans                                            |      | 31,267,732
|            |                                                            |      |           

F-34

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 15:    LOANS AND ALLOWANCE FOR LOAN LOSSES (Continued)

Loans made by the Group according to type of loan, which represents the Group's concentration of credit risk, at December 31, 2007
comprised:

|            |                                                            | 2007 |           
|----------- | ---------------------------------------------------------- | ---- | ----------
|
|
|Consumer:   |                                                            |      |           
|            | Residential mortgages                                      |      | 15,675,911
|            | Credit card                                                |      | 1,543,832 
|            | Auto financing                                             |      | 181,973   
|            | Installment, revolving credit and other                    |      | 3,878,343 
|            |                                                            |      |           
|            | Total consumer                                             |      | 21,280,059
|            |                                                            |      |           
|Commercial: |                                                            |      |           
|            | Industry and mining                                        |      | 3,150,111 
|            | Small scale industry                                       |      | 1,353,943 
|            | Trade                                                      |      | 5,067,392 
|            | Construction                                               |      | 736,584   
|            | Tourism                                                    |      | 169,937   
|            | Shipping and transportation                                |      | 1,204,350 
|            | Mortgage                                                   |      | 678,880   
|            | Public, municipalities and greater public sector companies |      | 1,814,646 
|            | Other                                                      |      | 1,906,747 
|            |                                                            |      |           
|            | Total commercial                                           |      | 16,082,590
|            |                                                            |      |           
|            | Total loans                                                |      | 37,362,649
|            | Unearned income                                            |      | 53,600    
|            |                                                            |      |           
|            | Loans, net of unearned income                              |      | 37,416,249
|            | Less: Allowance for loan losses                            |      | (779,608  
|            |                                                            |      |           
|            | Total Net Loans                                            |      | 36,636,641
|            |                                                            |      |           

Also, included in the above tables are loans for lease financing amounting to EUR 1,248,241 thousand and
EUR 1,904,802 thousand in 2006 and 2007 respectively.

F-35

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 15:    LOANS AND ALLOWANCE FOR LOAN LOSSES (Continued)

An
analysis of the change in the allowance for loan losses for the years ended December 31, follows:

|                                                     |  | 2005      |   | 2006      |   | 2007      |  
|---------------------------------------------------- |  | --------- | - | --------- | - | --------- | -
|
|Balance at January 1                                 |  | 1,115,212 |   | 1,092,545 |   | 1,224,757 |  
|Amounts attributable to discontinued operations      |  | (15,654   | ) |          |   |          |  
|Subsidiaries acquired                                |  |          |   | 133,227   |   | 6,582     |  
|Provision for loan losses from continuing operations |  | 225,013   |   | 261,603   |   | 190,755   |  
|Write-offs                                           |  | (245,881  | ) | (277,338  | ) | (341,572  | )
|Recoveries                                           |  | 7,058     |   | 20,064    |   | 46,023    |  
|                                                     |  |           |   |           |   |           |  
|Net Write-offs                                       |  | (238,823  | ) | (257,274  | ) | (295,549  | )
|Translation differences                              |  | 6,797     |   | (5,344    | ) | 6,407     |  
|                                                     |  |           |   |           |   |           |  
|Allowance at December 31,                            |  | 1,092,545 |   | 1,224,757 |   | 1,132,952 |  
|                                                     |  |           |   |           |   |           |  

Non-performing loans by sector, which the Group considers to be impaired at December 31, comprised:

|            |                                                            | 2006    |          
|----------- | ---------------------------------------------------------- | ------- | ---------
|
|
|Consumer:   |                                                            |         |          
|            | Residential mortgages                                      |         | 306,750  
|            | Credit card                                                |         | 114,424  
|            | Auto financing                                             |         | 6,386    
|            | Installment, revolving credit and other                    |         | 171,700  
|            |                                                            |         |          
|            | Total consumer                                             |         | 599,260  
|            |                                                            |         |          
|Commercial: |                                                            |         |          
|            | Industry and mining                                        |         | 147,276  
|            | Small scale industry                                       |         | 87,548   
|            | Trade                                                      |         | 139,486  
|            | Construction                                               |         | 33,955   
|            | Tourism                                                    |         | 37,143   
|            | Shipping and transportation                                |         | 12,562   
|            | Mortgage                                                   |         |         
|            | Public, municipalities and greater public sector companies |         | 182      
|            | Other                                                      |         | 38,372   
|            |                                                            |         |          
|            | Total commercial                                           |         | 496,524  
|            |                                                            |         |          
|            | Total loans                                                |         | 1,095,784
|            | Less: Allowance for loan losses                            |         | (748,136 
|            |                                                            |         |          
|            |                                                            | 347,648 |          
|            |                                                            |         |          

F-36

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 15:    LOANS AND ALLOWANCE FOR LOAN LOSSES (Continued)

Non-performing loans by sector, which the Group considers to be impaired at December 31, comprised:

|            |                                                            | 2007    |          
|----------- | ---------------------------------------------------------- | ------- | ---------
|
|
|Consumer:   |                                                            |         |          
|            | Residential mortgages                                      |         | 362,079  
|            | Credit card                                                |         | 99,063   
|            | Auto financing                                             |         | 3,468    
|            | Installment, revolving credit and other                    |         | 171,805  
|            |                                                            |         |          
|            | Total consumer                                             |         | 636,415  
|            |                                                            |         |          
|Commercial: |                                                            |         |          
|            | Industry and mining                                        |         | 121,752  
|            | Small scale industry                                       |         | 75,924   
|            | Trade                                                      |         | 214,575  
|            | Construction                                               |         | 31,537   
|            | Tourism                                                    |         | 24,854   
|            | Shipping and transportation                                |         | 14,811   
|            | Mortgage                                                   |         | 7,617    
|            | Public, municipalities and greater public sector companies |         | 33,076   
|            | Other                                                      |         | 6,000    
|            |                                                            |         |          
|            | Total commercial                                           |         | 530,146  
|            |                                                            |         |          
|            | Total loans                                                |         | 1,166,561
|            | Less: Allowance for loan losses                            |         | (647,787 
|            |                                                            |         |          
|            |                                                            | 518,774 |          
|            |                                                            |         |          

|
|

|                                              |  | 2005      |  | 2006      |  | 2007     
|--------------------------------------------- |  | --------- |  | --------- |  | ---------
|
|Average recorded investment in impaired loans |  | 1,452,920 |  | 1,764,616 |  | 1,677,161
|Interest recognized                           |  | 35,192    |  | 41,635    |  | 23,464   

Included in the above tables are loans with terms that have been modified by agreement between the Group and its debtors, referred to as troubled
debt restructuring.

F-37

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16:    GOODWILL, SOFTWARE AND OTHER INTANGIBLES

The following presents the allocation of goodwill by segment for December 31:

|                |  | Opening 2007 |  | Additions |  | Purchase Price allocation adjustments |   | Impairment/ write-offs |   | Disposals |   | Closing 2007
|--------------- |  | ------------ |  | --------- |  | ------------------------------------- | - | ---------------------- | - | --------- | - | ------------
|
|Banking Greek   |  | 7,956        |  |          |  |                                      |   |                       |   |          |   | 7,956       
|Banking foreign |  | 582,504      |  | 19,294    |  | (43,961                               | ) | (11,224                | ) | (47,954   | ) | 498,659     
|Banking Turkey  |  | 1,642,383    |  | 1,382,092 |  | 62,972                                |   |                       |   | (134,564  | ) | 2,952,883   
|Insurance       |  | 61,513       |  | 173,752   |  |                                      |   |                       |   |          |   | 235,265     
|OtherGreek     |  | 55,321       |  | 15,320    |  |                                      |   |                       |   |          |   | 70,641      
|                |  |              |  |           |  |                                       |   |                        |   |           |   |             
|Total           |  | 2,349,677    |  | 1,590,458 |  | 19,011                                |   | (11,224                | ) | (182,518  | ) | 3,765,404   
|                |  |              |  |           |  |                                       |   |                        |   |           |   |             

The decrease in Banking foreign segment relates to Vojvodjanska Banca's purchase price allocation finalization, disposals of EUR
47,954 thousand and impairment of goodwill of EUR 11,224 thousand in NBGI Private Equity funds.

The
increase in the Banking Turkey segment is due to additions which include the goodwill arising from the acquisition of an additional 43.89% shareholding in Finansbank (note 4)
and currency translation adjustments of EUR 232.6 million,and the finalization of the initial purchase price allocation. Following the sale of a 5% shareholding to IFC in April 2007 the
goodwill of Finansbank was reduced by EUR 134,564 thousand.

The
increase in Insurance segment is due to goodwill arising from the acquisition of the remaining shareholding in Ethniki Hellenic General Insurance SA.

In
OtherGreek segment, the increase is due to the acquisition of P&K (see note 4) and from the merger of the former with National Securities S.A.

F-38

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16:    GOODWILL, SOFTWARE AND OTHER INTANGIBLES (Continued)

The
finalization of the goodwill upon acquisition date of Finansbank and Vojvodjanska bank and the goodwill of the additional 43.9% shareholding of Finansbank acquired in January 2007 is
presented below:

|                                                            |                                                               | August 2006 |            | January 2007 |            | December 2006 |           
|----------------------------------------------------------- | ------------------------------------------------------------- | ----------- | ---------- | ------------ | ---------- | ------------- | ----------
|
|
|
|Total consideration                                         |                                                               | 2,234,463   |            | 2,234,463    |            | 1,735,403     |           
|                                                            | Less: Cash and cash equivalents in subsidiary acquired        |             | (101,435   | )            | (101,435   | )             | (586,039  
|                                                            |                                                               |             |            |              |            |               |           
|Total consideration less cash and cash equivalents acquired |                                                               | 2,133,028   |            | 2,133,028    |            | 1,149,364     |           
|                                                            |                                                               |             |            |              |            |               |           
|                                                            | Assets acquired and liabilities assumed                       |             |            |              |            |               |           
|                                                            | Cash and cash equivalents                                     |             | 101,435    |              | 101,435    |               | 586,039   
|                                                            | Due from banks                                                |             | 3,071,832  |              | 3,071,832  |               | 1,488,850 
|                                                            | Trading assets, derivatives and available-for-sale securities |             | 1,379,714  |              | 1,379,714  |               | 1,392,312 
|                                                            | Net loans                                                     |             | 5,680,072  |              | 5,672,445  |               | 6,563,599 
|                                                            | Software and other intangibles                                |             | 9,168      |              | 9,168      |               | 9,245     
|                                                            | Intangibles recognized:                                       |             |            |              |            |               |           
|                                                            | trade names                                                  |             | 161,910    |              | 161,910    |               | 161,094   
|                                                            | customer relationships                                       |             | 133,104    |              | 133,104    |               | 125,873   
|                                                            | core deposits                                                |             | 38,739     |              | 38,739     |               | 36,338    
|                                                            | software                                                     |             | 14,900     |              | 14,900     |               | 14,446    
|                                                            | Premises and equipment, net                                   |             | 130,191    |              | 130,191    |               | 137,905   
|                                                            | Other assets                                                  |             | 265,688    |              | 256,502    |               | 299,630   
|                                                            | Deposits                                                      |             | (6,281,214 | )            | (6,281,214 | )             | (6,877,613
|                                                            | Short term and long term borrowings                           |             | (2,911,102 | )            | (2,911,102 | )             | (1,927,497
|                                                            | Other liabilities                                             |             | (516,439   | )            | (636,521   | )             | (724,127  
|                                                            |                                                               |             |            |              |            |               |           
|                                                            | Total net assets                                              |             | 1,277,998  |              | 1,141,103  |               | 1,286,094 
|                                                            |                                                               |             |            |              |            |               |           
|                                                            | Group's share of net identifiable assets                      |             | 587,879    |              | 524,907    |               | 564,492   
|                                                            |                                                               |             |            |              |            |               |           
|                                                            | Goodwill on acquisition                                       |             | 1,646,584  |              | 1,709,556  |               | 1,170,911 
|                                                            |                                                               |             |            |              |            |               |           

F-39

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16:    GOODWILL, SOFTWARE AND OTHER INTANGIBLES (Continued)

The gross carrying amount and accumulated amortization relating to software and other intangibles at December 31 are presented below:

|                         |  | 2006     |   | 2007    |  
|------------------------ |  | -------- | - | ------- | -
|
|
|Gross carrying amount    |  | 231,737  |   | 182,763 |  
|Accumulated amortization |  | (195,542 | ) | (9,139  | )
|                         |  |          |   |         |  
|Net book value           |  | 36,195   |   | 173,624 |  
|                         |  |          |   |         |  

Other intangibles include intangibles identified upon the acquisition of acquired entities and consist of core deposits of
EUR 49,040 thousand, customer relationships of EUR 140,429 thousand, software of EUR 13,662 thousand, all of which have definite lives and trade names of
EUR 163,135 thousand which have indefinite lives. The estimated useful lives of core deposits and customer relationships are 6-11 years and software 14 years.

Amortization
expense on software and other intangibles amounted to EUR 23,898 thousand, EUR 24,404 thousand and EUR 48,235 thousand in 2005,
2006 and 2007 respectively. The Group estimates that aggregate amortization expense for the five succeeding fiscal years will be approximately EUR 54,247 thousand,
EUR 50,892 thousand, EUR 42,149 thousand, EUR 33,221 thousand and EUR 30,760 thousand for years 2008 through 2012 respectively.

NOTE 17:    PREMISES AND EQUIPMENT AND LEASE COMMITMENTS

Premises and equipment at December 31, comprised:

|                                  |  | 2006      |   | 2007      |  
|--------------------------------- |  | --------- | - | --------- | -
|
|Land                              |  | 192,934   |   | 173,505   |  
|Buildings                         |  | 735,884   |   | 768,821   |  
|Furniture, fittings and machinery |  | 246,883   |   | 211,797   |  
|Leasehold improvements            |  | 48,043    |   | 92,550    |  
|Office equipment                  |  | 335,317   |   | 417,021   |  
|Vehicles                          |  | 12,470    |   | 10,655    |  
|Other                             |  | 179,241   |   | 256,422   |  
|                                  |  |           |   |           |  
|Total, at cost                    |  | 1,750,772 |   | 1,930,771 |  
|Less: accumulated depreciation    |  | (800,210  | ) | (914,369  | )
|                                  |  |           |   |           |  
|Net book value                    |  | 950,562   |   | 1,016,402 |  
|                                  |  |           |   |           |  

Certain Group premises and equipment are leased under various operating leases. Rental expense amounted to EUR 42,395 thousand,
EUR 44,953 thousand and EUR 83,643 thousand for the years ended December 31, 2005, 2006 and 2007, respectively.

F-40

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 17:    PREMISES AND EQUIPMENT AND LEASE COMMITMENTS (Continued)

Future
minimum rental commitments under non-cancelable operating leases are presented below. The Group did not enter into any material capital leases.

|                             |  | Operating Leases
|---------------------------- |  | ----------------
|
|2008                         |  | 61,119          
|2009                         |  | 54,882          
|2010                         |  | 50,890          
|2011                         |  | 60,523          
|2012                         |  | 42,938          
|Thereafter                   |  | 161,248         
|                             |  |                 
|Total minimum lease payments |  | 431,600         
|                             |  |                 

NOTE 18:    OTHER ASSETS

Other assets at December 31, comprised:

|                                                                  |  | 2006      |  | 2007     
|----------------------------------------------------------------- |  | --------- |  | ---------
|
|Accounts receivable of non-financial services sector subsidiaries |  | 769,898   |  | 799,260  
|Deferred tax assets                                               |  | 582,156   |  | 573,572  
|Prepaid income taxes                                              |  | 224,991   |  | 146,324  
|Assets acquired through foreclosure proceedings                   |  | 91,993    |  | 104,281  
|Brokerage auxillary funds                                         |  | 20,400    |  | 51,231   
|Brokerage services settlement receivables                         |  | 15,153    |  | 67,065   
|Amounts receivable from sale of bonds                             |  | 83,687    |  | 63,855   
|Prepaid expenses                                                  |  | 33,052    |  | 48,439   
|Advances to employees                                             |  | 26,292    |  | 41,960   
|European Re-development Fund                                      |  | 31,861    |  | 30,316   
|Unlisted equity securities                                        |  | 32,023    |  | 29,942   
|Other                                                             |  | 650,668   |  | 1,068,996
|                                                                  |  |           |  |          
|Total                                                             |  | 2,562,174 |  | 3,025,241
|                                                                  |  |           |  |          

NOTE 19:    ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS

The
Group's North America operations comprising of Atlantic Bank of New York (ABNY) and NBG Canada, were sold to Community Bank of New York and Scotia Bank respectively. NBG Canada was
sold in February 2006 while the sale of ABNY occurred in April 2006 (see note 4 to the Consolidated Financial Statements).

These
transactions are consistent with the Group' s strategy to withdraw from mature markets where growth prospects are limited and at the same time retain and expand its presence in
markets with high growth potential and where the Group commands a competitive advantage.

F-41

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 19:    ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS (Continued)

The
proceeds from the disposal exceeded the net carrying amount of the relevant assets and liabilities and accordingly, no impairment loss has been recognized upon classification of
these operations as held for sale.

The
results of the operations of NBG Canada and ABNY for the period up to their disposal and the gain on sale are summarized as follows:

|                                                                      |  | 2005    |   | 2006    |  
|--------------------------------------------------------------------- |  | ------- | - | ------- | -
|
|Interest income                                                       |  | 139,069 |   | 29,732  |  
|Interest expense                                                      |  | (47,738 | ) | (12,672 | )
|                                                                      |  |         |   |         |  
|Net interest income before provisions                                 |  | 91,331  |   | 17,060  |  
|Provisions                                                            |  | 4,506   |   | 575     |  
|                                                                      |  |         |   |         |  
|Net interest income after provisions                                  |  | 95,837  |   | 17,635  |  
|Commission                                                            |  | 11,639  |   | 1,726   |  
|Net trading income                                                    |  | 2,685   |   | (392    | )
|Net realised (losses)/gains on sales of available-for-sale-securities |  | (502    | ) | 249     |  
|Other operating income                                                |  | 8,942   |   | 1,465   |  
|Salaries and employee benefits                                        |  | (41,049 | ) | (7,073  | )
|Depreciation, amortisation and impairment charges                     |  | (7,865  | ) | (1,300  | )
|Other operating expenses                                              |  | (22,914 | ) | (3,915  | )
|Gain on sale of discontinued operations                               |  |        |   | 60,931  |  
|                                                                      |  |         |   |         |  
|Profit before income tax                                              |  | 46,773  |   | 69,326  |  
|Tax expense (including tax on gain from disposal)                     |  | (18,490 | ) | (11,139 | )
|                                                                      |  |         |   |         |  
|Income from discontinued operations                                   |  | 28,283  |   | 58,187  |  
|                                                                      |  |         |   |         |  

The Group classified the assets and liabilities of the warehouse section of the Group (note 4) under SFAS 144: "Accounting for the
Impairment or Disposal of Long-Lived Assets" from the point it took the binding decision to dispose of the warehouse section and made all the necessary arrangements to locate a buyer.

|                                                         |  | 2007  
|-------------------------------------------------------- |  | ------
|
|Cash and due from banks                                  |  | 14    
|Premises and equipment, net                              |  | 53,378
|Other assets                                             |  | 18,805
|                                                         |  |       
|Total assets                                             |  | 72,197
|Accounts payable, accrued expenses and other liabilities |  | 11,468
|                                                         |  |       
|Net assets held for sale                                 |  | 60,729
|                                                         |  |       

F-42

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 20:    PLEDGED ASSETS

At December 31, 2006 and 2007, the Group pledged to the central bank to increase borrowing capacity and to other third parties to secure public deposits
and for other purposes bonds and other assets, principally securities, of EUR 2,909,822 thousand and EUR 3,443,360 thousand, respectively.

NOTE 21:    DEPOSITS

The aggregate amount of short-term certificates of deposit, each with a minimum denomination of EUR 68,000, which approximates
USD 100,000, was EUR nil at December 31, 2007. At December 31, 2007, interest-bearing deposits with scheduled maturities in excess of one year were
EUR 714,651 thousand.

Deposits
made by Greek residents and foreign customers at December 31, comprised:

|                      |                                     | 2006      |            | 2007   
|--------------------- | ----------------------------------- | --------- | ---------- | -------
|
|
|Interest bearing:     |                                     |           |            |        
|Public sector         |                                     | 104,390   |            | 121,220
|Private sector:       |                                     |           |            |        
|                      | Corporations                        |           | 3,034,472  |        
|                      | Individuals                         |           | 34,742,216 |        
|                      | Interbank                           |           | 1,885,971  |        
|                      |                                     |           |            |        
|                      | Total interest bearing deposits     |           | 39,767,049 |        
|                      |                                     |           |            |        
|Non-interest bearing: |                                     |           |            |        
|Public sector         |                                     | 2,121,933 |            | 2,577  
|Private sector:       |                                     |           |            |        
|                      | Corporations                        |           | 2,559,552  |        
|                      | Individuals                         |           | 235,963    |        
|                      | Interbank                           |           | 105,517    |        
|                      |                                     |           |            |        
|                      | Total non-interest bearing deposits |           | 5,022,965  |        
|                      |                                     |           |            |        
|Total:                |                                     |           |            |        
|Public sector         |                                     | 2,226,323 |            | 123,797
|Private sector:       |                                     |           |            |        
|                      | Corporations                        |           | 5,594,024  |        
|                      | Individuals                         |           | 34,978,179 |        
|                      | Interbank                           |           | 1,991,488  |        
|                      |                                     |           |            |        
|                      | Total deposits                      |           | 44,790,014 |        
|                      |                                     |           |            |        

F-43

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 22:    SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Information concerning securities sold under agreements to repurchase is summarized as follows:

|                                                |                                                | 2006      |           | 2007      |          
|----------------------------------------------- | ---------------------------------------------- | --------- | --------- | --------- | ---------
|
|Securities sold under agreements to repurchase  |                                                | 3,037,503 |           | 3,509,525 |          
|                                                |                                                |           |           |           |          
|Securities sold under agreements to repurchase: |                                                |           |           |           |          
|                                                | Average outstanding during the year            |           | 3,726,654 |           | 5,051,858
|                                                | Weighted average interest rate during the year |           | 3.41      | %         | 5.15     
|                                                | Weighted average interest rate at year end     |           | 4.77      | %         | 4.96     
|Amount outstanding at month end:                |                                                |           |           |           |          
|                                                | January                                        |           | 3,941,368 |           | 4,819,743
|                                                | February                                       |           | 4,296,491 |           | 5,077,173
|                                                | March                                          |           | 3,169,609 |           | 5,175,312
|                                                | April                                          |           | 2,975,907 |           | 6,386,946
|                                                | May                                            |           | 4,976,644 |           | 6,176,224
|                                                | June                                           |           | 3,126,524 |           | 5,986,810
|                                                | July                                           |           | 3,681,211 |           | 6,523,419
|                                                | August                                         |           | 4,930,587 |           | 5,907,858
|                                                | September                                      |           | 3,896,318 |           | 4,314,067
|                                                | October                                        |           | 3,692,712 |           | 4,307,797
|                                                | November                                       |           | 3,990,483 |           | 4,448,830

Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction. Maturities of such
agreements to repurchase are typically overnight to six months.

NOTE 23:    OTHER BORROWED FUNDS

Included in other borrowed funds are bonds issued by the Group at par on a monthly basis. These bonds, which mature within 1 year of their issue date, had
a balance of EUR 295,243 thousand and EUR 473,666 thousand in 2006 and 2007, respectively. The balance includes the syndication loan obtained by Finansbank on
19 November 2007, amounting to USD 425 million with interest rate set to LIBOR plus 0.25%.

The
weighted average interest rates were 15.49% and 11.81% in 2006 and 2007 respectively. These rates are affected by the higher rates applicable in Turkey and foreign banking sector.

F-44

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 24:    ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

Accounts payable, accrued expenses and other liabilities at December 31, comprised:

|                                                               |  | 2006      |  | 2007     
|-------------------------------------------------------------- |  | --------- |  | ---------
|
|Accrued expenses and deferred income                           |  | 86,410    |  | 66,962   
|Amounts due to re-insurers                                     |  | 40,219    |  | 50,920   
|Income and other taxes payable                                 |  | 295,807   |  | 142,467  
|Accounts payable and other                                     |  | 1,467,376 |  | 2,044,796
|Securities payable                                             |  | 94,543    |  | 70,811   
|Accrued interest and commissions                               |  | 371,556   |  | 366,336  
|Deferred tax liability                                         |  | 205,524   |  | 343,038  
|Amounts due to third-parties under collection agreements       |  | 321,335   |  | 74,328   
|Pension liability                                              |  | 245,725   |  | 230,248  
|Dividends payable                                              |  | 223,769   |  | 195,399  
|Accounts payable of non-financial services sector subsidiaries |  | 19,956    |  | 21,333   
|Amounts due to government agencies                             |  | 60,808    |  | 341,046  
|European Re-development Fund                                   |  | 31,861    |  | 30,316   
|                                                               |  |           |  |          
|                                                               |  | 3,464,889 |  | 3,978,000
|                                                               |  |           |  |          

NOTE 25:    INSURANCE RESERVES

Ethniki Hellenic General Insurance Company ("EH"), the insurance company of the Group has consistently made a provision for loss reserves by estimating the
potential liability on a claim-by-claim basis. Activity in the liability for unpaid claims and claim adjustment expenses for the year ended December 31, comprises of:

|                                               |                                                                                         | 2006 |          | 2007 |         
|---------------------------------------------- | --------------------------------------------------------------------------------------- | ---- | -------- | ---- | --------
|
|Property and casualty reserves                 |                                                                                         |      |          |      |         
|                                               | Reserve for unpaid claims and claim adjustment expenses as at January 1,                |      | 487,058  |      | 525,683 
|Incurred claims and claim adjustment expenses: |                                                                                         |      |          |      |         
|                                               | Provision for insured events of the current year                                        |      | 205,264  |      | 180,245 
|                                               | Change in provision for insured events of prior years                                   |      | 23,057   |      | 34,438  
|                                               |                                                                                         |      |          |      |         
|                                               | Total incurred claims and claim adjustment expenses                                     |      | 228,321  |      | 214,683 
|Payments                                       |                                                                                         |      |          |      |         
|                                               | Claims and claim adjustment expenses attributable to insured events of the current year |      | (75,947  | )    | (100,789
|                                               | Claims and claim adjustment expenses attributable to insured events of prior years      |      | (128,209 | )    | (114,171
|                                               |                                                                                         |      |          |      |         
|                                               | Total payments                                                                          |      | (204,156 | )    | (214,960
|                                               | Changes in unearned premium reserves                                                    |      | 14,460   |      | 8,734   
|                                               |                                                                                         |      |          |      |         
|                                               | Reserves for unpaid claims and claim adjustment expenses as at December 31,             |      | 525,683  |      | 534,140 
|                                               |                                                                                         |      |          |      |         

F-45

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 25:    INSURANCE RESERVES (Continued)

|
|

|                        |                                                                | 2006 |           | 2007 |          
|----------------------- | -------------------------------------------------------------- | ---- | --------- | ---- | ---------
|
|Life insurance reserves |                                                                |      |           |      |          
|                        | Mathematical and other life insurance reserves at 1 January,   |      | 1,050,070 |      | 1,207,883
|                        | Increase in reserves                                           |      | 301,293   |      | 367,720  
|                        | Paid claims and other movements                                |      | (143,480  | )    | (185,444 
|                        |                                                                |      |           |      |          
|                        | Mathematical and other life insurance reserves at 31 December, |      | 1,207,883 |      | 1,390,159
|                        |                                                                |      |           |      |          
|                        | Total insurance reserves                                       |      | 1,733,566 |      | 1,924,299
|                        |                                                                |      |           |      |          

Reinsurance arrangements

The reinsurance program of EH is designed to minimize the Group's exposure to large claims and reduce accumulation against catastrophic risks. The level of risk
retained by the Group is determined by the levels of Shareholder Equity, Gross Written Premia and Possible Maximum Loss per type of risk underwritten. In the year 2005 the Group's reinsurance program
was redesigned in favor of excess of loss rather than proportional treaties while no major change occurred in the reinsurance programs of 2006 and 2007.

NOTE 26:    LONG-TERM DEBT

Long-term debt (original maturities of more than one year) at December 31, 2007 comprised:

|                      |               | Under 1 year |         | 1-5 years |           | After 5 years |           | TOTAL
|--------------------- | ------------- | ------------ | ------- | --------- | --------- | ------------- | --------- | -----
|
|By remaining maturity |               |              |         |           |           |               |           |      
|Senior Debt:          |               |              |         |           |           |               |           |      
|                      | Fixed Rate    |              | 143,082 |           | 443,650   |               | 75,951    |      
|                      | Variable Rate |              | 100,187 |           | 2,500,313 |               |          |      
|Subordinated Debt:    |               |              |         |           |           |               |           |      
|                      | Fixed Rate    |              | 2,795   |           |          |               | 1,074,718 |      
|                      | Variable Rate |              |        |           |          |               | 822,274   |      
|Other                 |               |              |         |           |           |               |           |      
|                      | Fixed Rate    |              | 5,770   |           | 43,072    |               | 2,723     |      
|                      | Variable Rate |              | 7,273   |           | 198,189   |               | 5,322     |      
|                      |               |              |         |           |           |               |           |      
|                      | Total         |              | 259,107 |           | 3,185,224 |               | 1,980,988 |      
|                      |               |              |         |           |           |               |           |      

Certain of these debt instruments were issued by 100% owned unconsolidated "finance subsidiaries" of the Bank, NBG Funding Ltd and NBG
Finance plc (the "finance subsidiaries"). The Bank has fully and unconditionally guaranteed all securities issued by these companies. There are no restrictions on the ability of these
unconsolidated "finance subsidiaries" to transfer funds to the Bank in the form of cash dividends, loans and advances.

The
Group does not consolidate the "finance subsidiaries" following the guidance in FIN 46R. Under this guidance, the Group is not deemed to be the primary beneficiary of the
entities. The Group

F-46

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 26:    LONG-TERM DEBT (Continued)

does
not absorb the majority of the entities' expected losses nor does it receive a majority of the entities' expected returns.

The
proceeds of the instruments issued by NBG Funding were lent to NBG Finance through Eurobond issues and ultimately lent to the Bank under loan agreements with the same terms as each
of the instruments referred to above but with a 30 year maturity.

Long-term
debt Senior Notes and the related rates and maturity dates at December 31, comprise:

|                                                                                               |  | 2007     
|---------------------------------------------------------------------------------------------- |  | ---------
|
|Fixed, with a weighted average rate of 6.24%, maturing up until 2013 and denominated in USD    |  | 209,261  
|Fixed, with a weighted average rate of 11.81%, maturing up until 2011 and denominated in TRY   |  | 174,780  
|Fixed, with a weighted average rate of 3.05%, maturing up until 2015 and denominated in EUR    |  | 118,261  
|Fixed, with a weighted average rate of 4.60%, maturing up until 2015 and denominated in BGN    |  | 61,981   
|Fixed, with a weighted average rate of 7.35%, maturing up until 2012 and denominated in RON    |  | 98,400   
|                                                                                               |  |          
|                                                                                               |  | 662,683  
|                                                                                               |  |          
|Variable, with a weighted average rate of 4.85%, maturing up until 2015 and denominated in EUR |  | 1,563,647
|Variable, with a weighted average rate of 6.42%, maturing up until 2012 and denominated in USD |  | 1,026,456
|Variable, with a weighted average rate of 5.06%, maturing up until 2015 and denominated in BGN |  | 10,397   
|                                                                                               |  |          
|                                                                                               |  | 2,600,500
|                                                                                               |  |          



USD 125 million
Series 2004-B notes issued in November 2004 by a special purpose entity, the proceeds of which were lent to the Bank's subsidiary Finansbank. The
notes are secured on Finansbank's diversified payment rights and have a five-year maturity. Interest is 6.1014%, paid quarterly, with no principal payment for two years.

USD 110 million
bonds with a five year maturity and USD 110 million bonds with a seven-year maturity issued in March 2006 by a special purpose
entity, the proceeds of which were lent to the Bank's subsidiary Finansbank. Interest is 6.25% and 6.5% respectively, paid semi-annually.

TRY
300 million, credit card secured non-amortizing loan, with a five-year maturity. Interest is 11.81%, paid quarterly.

F-47

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 26:    LONG-TERM DEBT (Continued)

In
February 2007, NBG Finance plc, a wholly owned subsidiary of the Bank, issued RON 355 million Fixed Rate Notes, guaranteed by the Bank due in February 2012. Interest is
7.35% and paid semi-annually.



EUR 1,500 million
Floating Rate Note issued in May 2007. The note is redeemable in May 2009 and guaranteed by the Bank. The note bears a coupon of 3month EURIBOR plus 8 bps
and was priced at a re-offer spread of 11 bps. Interest is paid quarterly. The proceeds of the Note were ultimately lent to the Bank under loan agreements with the terms disclosed above.

USD 300 million
Floating Rate Note issued in October 2007. The note is redeemable in October 2009 and guaranteed by the Bank. The note bears a coupon of 3month USD LIBOR
plus 8 bps. Interest is
paid quarterly. The proceeds of the Note were ultimately lent to the Bank under loan agreements with the terms disclosed above.

USD 500 million
Series 2005-A Floating Rate Notes issued in March 2005 by a special purpose entity, the proceeds of which were lent to Finansbank. The
notes are secured on Finansbank's diversified payment rights and have a seven-year maturity. Interest is determined as the three-month LIBOR plus 180 bps, paid quarterly, with no principal
repayment for three years.

USD 700 million
term loan facility in two tranches: USD 479 million with a two-year maturity and interest at LIBOR + 42.5 bps, paid
quarterly, and USD 221 million with a three-year maturity and interest at LIBOR + 60 bps, paid quarterly.

Long-term
Subordinated debts and the related rates and maturity date at December 31, comprise:

|                                                                                                         |  | 2007     
|-------------------------------------------------------------------------------------------------------- |  | ---------
|
|Fixed, 6.12% up to February 16, 2010, redeemable on or after Feb. 2015 and denominated in EUR            |  | 230,000  
|Fixed, 6.41% up to November 8, 2016, redeemable on or after Nov. 2016 and denominated in GBP             |  | 511,352  
|Fixed, 2.88%, redeemable on or after June 2015, matures through 2035 and denominated in JPY              |  | 181,896  
|Fixed, 8.84% for the first 5 years and steps up to 11.79% , matures in 2014 and denominated in USD       |  | 154,265  
|                                                                                                         |  |          
|                                                                                                         |  | 1,077,513
|                                                                                                         |  |          
|Variable, with a weighted average rate of 5.78%, redeemable on or after July 2013 and denominated in EUR |  | 350,000  
|Variable, with a weighted average rate of 5.78%, redeemable on or after Nov. 2014 and denominated in EUR |  | 350,000  
|Variable, with a weighted average rate of 5.24%, redeemable on or after Nov. 2014 and denominated in USD |  | 122,274  
|                                                                                                         |  |          
|                                                                                                         |  | 822,274  
|                                                                                                         |  |          

F-48

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 26:    LONG-TERM DEBT (Continued)



EUR 230 million
series D CMS- Linked Subordinated Callable Notes were issued in February 2005. The securities are perpetual and may be redeemed by NBG
Funding, in whole but not in part, on February 16, 2015 or any dividend date falling thereafter subject to the consent of the Bank. The preferred dividend rate is 6.00% until
February 16, 2010 and, thereafter, is determined as the difference of the 10 year EUR CMS mid swap rate minus the 2 year mid swap rate multiplied by four subject to a
minimum rate of 3.25% and capped at 10.00% paid annually.

GBP
375 million series E Fixed/Floating Rate Non-cumulative Guaranteed Non-voting Preferred Securities were issued in November 2006. The securities are
perpetual and may be redeemed by NBG Funding, in whole but not in part, on November 2016 or on any dividend date falling thereafter subject to the consent of the Bank. The preferred dividend rate is
6.2889% until November 8, 2016 and three month LIBOR plus 2.08% thereafter, paid annually until November 8, 2016 and quarterly thereafter.

JPY
30 billion Callable Subordinated Fixed Rate Notes were issued in June 2005. The securities are due in June 2035 and are guaranteed on a subordinate basis by the Bank. The
notes may be redeemed at the option of the Bank in or after June 2015. The notes carry a fixed rate of interest of 2.755%, which is payable semi-annually in arrears.

USD 200 million
Subordinated Callable Notes issued in October 2004. The notes have a 10-year maturity and there is a repayment option at the end of the fifth
year. Interest, paid annually, is 9% for the first five years and steps up to 11.79% thereafter.



EUR 350 million
Series A Floating Rate Non-Cumulative Non-Voting Preferred Securities were issued in July 2003. The securities are guaranteed
on a subordinate basis by the Bank. The securities are perpetual and may be redeemed by NBG Funding, in whole but not in part, in July 2013 or on any dividend date falling thereafter, subject to the
consent of the Bank. The preferred dividend rate is three-month Euribor plus 175 bps until July 11, 2013 and Euribor plus 275 bps thereafter, paid quarterly.

EUR 350 million
series B CMS-Linked Subordinated Callable Notes were issued in November 2004. The securities are perpetual and may be redeemed by NBG
Funding, in whole but not in part, in November 2014 or any dividend date falling thereafter subject to the consent of the Bank. The preferred dividend is 6.25% for the first year and is then
determined as the 10 year EUR CMS mid swap rate plus 12.5 bps reset every six months and capped at 8.00% paid semi-annually.

USD 180 million
series C CMS-Linked Subordinated Callable Notes were issued in November 2004. The securities are perpetual and may be redeemed by NBG
Funding, in whole but not in part, in November 2014 or any dividend date falling thereafter subject to the consent of the Bank. The preferred dividend is 6.75% for the first year and is then
determined as the 10 year USD CMS mid swap rate plus 12.5 bps reset every six months and capped at 8.50% paid semi-annually.

On
25 June 2007 (the first call date), NBG Finance plc redeemed the EUR 750 million Callable Subordinated Floating Rate Notes issued in June 2002.

"Other"
primarily includes fixed rate borrowings of Finansbank and Finans Finansal Kiralama S.A. amounting to EUR 48,205 thousand (of which EUR 17,633,
EUR 20,153 and EUR 10,419

F-49

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 26:    LONG-TERM DEBT (Continued)

denominated
in EURO, TRY and USD respectively) and floating rate borrowings of the above mentioned companies, amounting to EUR 206,830 thousand (of which EUR 153,962,
EUR 6,250 and EUR 46,618 denominated in EUR, TRY and USD).

NOTE 27:    COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Group enters into a number of off-balance sheet commitments to meet the financing needs of its customers,
through the use of commitments to extend credit and commercial and standby letters of credit.

The
Group's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and commercial and standby
letters of credit is represented by the contractual notional amount of those instruments. The Group uses the same credit policies in making commitments and conditional obligations as it does for
on-balance-sheet instruments.

The
following table summarizes the Group's off-balance-sheet financial instruments, whose contract amounts represent credit risk, as of December 31:

|                                                                    |                                                            | 2006 |            | 2007
|------------------------------------------------------------------- | ---------------------------------------------------------- | ---- | ---------- | ----
|
|Financial instruments whose contract amounts represent credit risk: |                                                            |      |            |     
|Commitments to extend credit:                                       |                                                            |      |            |     
|                                                                    | Commercial and personal.                                   |      | 15,282,264 |     
|                                                                    | Commercial real estate                                     |      | 44,991     |     
|                                                                    | Residential real estate                                    |      | 622,607    |     
|                                                                    | Commercial letters of credit.                              |      | 742,780    |     
|                                                                    | Standby letters of credit and financial guarantees written |      | 5,769,479  |     

Commitments to Extend Credit.Commitments to extend credit are agreements to lend to a customer, as long as
there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the
commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The majority of commitments to extend credit have terms
up to one year and are based on EURIBOR/ LIBORor other base rates. Management evaluates each customer's credit worthiness in determining the amount of collateral to obtain. Collateral
held varies and may include accounts receivable, inventory, property, plant and equipment and real estate.

Commercial Letters of Credit.Commercial letters of credit ensure payment by a bank to a third party for a customer's foreign
or domestic trade transactions, generally to finance a commercial contract for the shipment of goods. A significant portion of commercial letters of credit is on an immediate payment basis. The
Group's credit risk in these transactions is limited since the contracts are collateralized by the merchandise being shipped and are generally of short duration.

Standby Letters of Credit and Financial Guarantees Written.Standby letters of credit and financial guarantees written are
conditional commitments issued by the Group to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support the financing needs of the

F-50

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 27:    COMMITMENTS AND CONTINGENCIES (Continued)

Bank's
commercial customers, and are short-term in nature. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to
customers. The Group holds marketable securities as collateral supporting those commitments for which collateral is deemed necessary.

Legal Contingencies.The Group is a defendant in certain claims and legal actions arising in the ordinary course of business.
In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition
of the Group.

NOTE 28:    OTHER FEES AND COMMISSIONS

Other fees and commissions as December 31, comprised:

|                                        |  | 2005    |  | 2006    |  | 2007   
|--------------------------------------- |  | ------- |  | ------- |  | -------
|
|Custody, brokerage & investment banking |  | 74,009  |  | 96,472  |  | 159,206
|Retail lending fees                     |  | 71,138  |  | 63,881  |  | 69,294 
|Corporate lending fees                  |  | 79,101  |  | 112,556 |  | 154,740
|Banking fees & similar charges          |  | 106,246 |  | 121,965 |  | 163,290
|Fund management fees                    |  | 39,236  |  | 62,395  |  | 79,955 
|                                        |  |         |  |         |  |        
|Total                                   |  | 369,730 |  | 457,269 |  | 626,485
|                                        |  |         |  |         |  |        

NOTE 29:    OTHER NON-INTEREST INCOME

Other non-interest income at December 31, comprised:

|                                                  |  | 2005    |  | 2006    |  | 2007     
|------------------------------------------------- |  | ------- |  | ------- |  | ---------
|
|Income from insurance operations                  |  | 616,383 |  | 733,330 |  | 834,681  
|Profit on sales of premises and foreclosed assets |  | 49,322  |  | 77,643  |  | 73,633   
|Hotel revenues                                    |  | 25,976  |  | 28,315  |  | 28,967   
|Other                                             |  | 125,190 |  | 142,673 |  | 140,229  
|                                                  |  |         |  |         |  |          
|Total                                             |  | 816,871 |  | 981,961 |  | 1,077,510
|                                                  |  |         |  |         |  |          

NOTE 30:    OTHER NON-INTEREST EXPENSE

Other non-interest expense at December 31, comprised:

|                                                                              |  | 2005    |  | 2006      |  | 2007     
|----------------------------------------------------------------------------- |  | ------- |  | --------- |  | ---------
|
|Insurance claims, reserves movement, commissions and reinsurance premia ceded |  | 539,251 |  | 655,941   |  | 764,883  
|Credit card costs                                                             |  | 35,362  |  | 31,117    |  | 48,824   
|Hotel running costs                                                           |  | 25,476  |  | 34,911    |  | 30,221   
|Broker costs                                                                  |  | 7,727   |  | 12,994    |  | 29,378   
|Other                                                                         |  | 308,465 |  | 444,037   |  | 651,109  
|                                                                              |  |         |  |           |  |          
|Total                                                                         |  | 916,281 |  | 1,179,000 |  | 1,524,415
|                                                                              |  |         |  |           |  |          

F-51

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 30:    OTHER NON-INTEREST EXPENSE (Continued)

Other refers to consultancy fees paid, rental, promotion and advertising expenses.

NOTE 31:    INCOME TAXES

The significant components of the provision for income taxes for the years ended December 31, 2005, 2006 and 2007 are as follows:

|                                          |                              | 2005 |          | 2006 |          | 2007 |         
|----------------------------------------- | ---------------------------- | ---- | -------- | ---- | -------- | ---- | --------
|
|Tax provision from continuing operations: |                              |      |          |      |          |      |         
|                                          | Current tax payable domestic |      | (145,712 | )    | (275,433 | )    | (137,307
|                                          | Current tax payable foreign  |      | (22,474  | )    | (37,079  | )    | (94,834 
|                                          | Deferred taxation domestic   |      | (66,068  | )    | 109,785  |      | (85,076 
|                                          | Deferred taxation foreign    |      | 1,468    |      | (11,972  | )    | 5,726   
|                                          |                              |      |          |      |          |      |         
|                                          | Total tax expense            |      | (232,786 | )    | (214,699 | )    | (311,491
|                                          |                              |      |          |      |          |      |         

The allocation of net income before taxes between domestic and foreign is presented in note 37.

The
differences between the statutory income tax rates and the effective tax rates are summarized as follows:

|                                                                    |  | 2005  |    | 2006  |    | 2007  |   
|------------------------------------------------------------------- |  | ----- | -- | ----- | -- | ----- | --
|
|Average statutory income tax rates(1)                               |  | 30.40 | %  | 27.17 | %  | 23.99 | % 
|Effect of tax-exempt income                                         |  | (2.70 | )% | (3.69 | )% | (4.02 | )%
|Effect of companies with losses                                     |  | 0.43  | %  | (0.65 | )% | (0.15 | )%
|Non deductible expenses                                             |  | 7.52  | %  | 2.87  | %  | 3.96  | % 
|Non deductible goodwill                                             |  | 0.61  | %  | 1.28  | %  |      |   
|Statutory revaluation of fixed assets                               |  | (0.06 | )% |      |    | 0.02  | % 
|Effect of change in income tax rate                                 |  | (1.62 | )% | 0.29  | %  |      |   
|Effect of 5% tax reduction due to merger activity                   |  | (2.26 | )% | (2.19 | )% |      |   
|General allowance for loans losses recognized only for tax purposes |  | (3.14 | )% | (5.39 | )% | (6.69 | )%
|Other                                                               |  | (0.09 | )% | (0.36 | )% | 1.27  | % 
|                                                                    |  |       |    |       |    |       |   
|Average effective rate                                              |  | 29.09 | %  | 19.33 | %  | 18.38 | % 
|                                                                    |  |       |    |       |    |       |   

---

F-52

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 31:    INCOME TAXES (Continued)

The significant components of deferred income tax assets and liabilities at December 31 comprised:

|                          |                                                                   | 2006 |          | 2007 |         
|------------------------- | ----------------------------------------------------------------- | ---- | -------- | ---- | --------
|
|Deferred Tax Assets:      |                                                                   |      |          |      |         
|                          | Allowance for loan losses                                         |      | 17,497   |      | 1,977   
|                          | Mark to market valuation of securities and derivative liabilities |      | 132,827  |      | 145,042 
|                          | Retirement Benefits                                               |      | 17,725   |      | 16,822  
|                          | Insurance Reserves                                                |      | 41,851   |      | 39,270  
|                          | Statutory revaluation on fixed assets                             |      | 305,440  |      | 269,470 
|                          | Other                                                             |      | 66,816   |      | 100,991 
|                          |                                                                   |      |          |      |         
|                          | Total deferred tax assets                                         |      | 582,156  |      | 573,572 
|                          |                                                                   |      |          |      |         
|Deferred Tax Liabilities: |                                                                   |      |          |      |         
|                          | Tax free reserves                                                 |      | (110,476 | )    | (117,841
|                          |                                                                   |      |          |      |         
|                          | Other(1)                                                          |      | (95,048  | )    | (225,197
|                          |                                                                   |      |          |      |         
|                          | Total deferred tax liabilities                                    |      | (205,524 | )    | (343,038
|                          |                                                                   |      |          |      |         
|                          | Net deferred tax asset                                            |      | 376,632  |      | 230,534 
|                          |                                                                   |      |          |      |         

---

The deferred tax on the mark-to-market valuation of securities includes both trading and
available-for-sale securities, as most of these mark-to-market gains/losses are not recognized for Greek income tax purposes.

Following
legislation enacted in December 2004, the applicable Greek statutory rate of tax is reduced from 35% for 2004, to 32% for 2005, 29% for 2006 and 25% for 2007 and thereafter.
The rate for 2006 applicable to the Bank was 24%, based on a law, which reduced the tax rate by 5% for companies, which effected legal mergers until December 31, 2005.

Up
to December 31, 2006 the tax-free reserves represented profits made on the sale of shares, property, bonds and other similar assets as well as income taxed at
privileged rates, such as interest earned on treasury bills and bonds, which were not distributed. These reserves are fully taxed upon distribution and have, therefore, been treated as temporary
differences in the deferred tax computations. On January 29, 2008, a new tax law (Law 3634/2008) was enacted, whereby any non-taxed bank reserves of 2007 onwards, deriving from
realized gains from stock exchange traded shares, realized gains from stock exchange traded derivatives and unrealized losses from valuation of shares and bonds, which are reflected in the financial
statements of a bank approved by the Annual General Meeting of the shareholders, are subject to tax at the current tax rate.

The
Group adopted the provision of FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" (FIN 48) on
January 1, 2007. FIN 48 clarifies the accounting and reporting for income taxes where interpretation of the tax law may be uncertain. The adoption of FIN 48 by the Group had no
effect on the Unrecognized Tax Benefit

F-53

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 31:    INCOME TAXES (Continued)

("UTB")
balance as at January 1, 2007. The beginning UTB balance of EUR 8,448 thousand reconciles to the December 31, 2007 balance in the following table.

Reconciliation of the Change in Unrecognized Tax Benefits

|                                                             |  | 2007  
|------------------------------------------------------------ |  | ------
|
|Balance, January 1, 2007                                     |  | 8,448 
|Increases related to positions taken during prior years      |  | 12,955
|Increases related to positions taken during the current year |  | 8,006 
|                                                             |  |       
|Balance, December 31, 2007                                   |  | 29,409
|                                                             |  |       

As of December 31, 2007, the balance of the Group's unrecognized tax benefits, which would, if recognized, affect the Group's effective tax
rate was EUR 29,409 thousand.

As
of December 31, 2007, the Group's accrual for penalties that related to income taxes was EUR 2,861 thousand.

The
Group companies files income tax returns in most of the jurisdictions in which it conducts business. We are not aware of positions for which it is reasonably possible that the total
amounts of unrecognized tax benefits will be significantly increased or decreased within 12 months of the reporting date.

The
open tax years of the major companies of the Group are as follows:

|Company                                          |  | Open tax years
|------------------------------------------------ |  | --------------
|National Bank of Greece S.A                      |  | 2005-2007     
|NBG London Branch (United Kingdom)               |  | 2002-2007     
|Finansbank A.S. (Turkey)                         |  | 2002-2007     
|United Bulgarian Bank A.D.Sofia (Bulgaria)      |  | 2005-2007     
|Vojvodjanska Banka A.D. Novi Sad (Serbia)        |  | 2006-2007     
|Banca Romaneasca S.A. (Romania)                  |  | 2006-2007     
|National P&K Securities S.A. (Greece)            |  | 2003-2007     
|NBG Asset Management Mutual Funds S.A. (Greece)  |  | 2005-2007     
|Ethniki Leasing S.A. (Greece)                    |  | 2001-2007     
|Ethniki Hellenic General Insurance S.A. (Greece) |  | 2006-2007     

NOTE 32:    RELATED PARTY TRANSACTIONS

The Bank has entered into transactions with its directors, significant shareholders, and affiliates (related parties). The aggregate amount of loans to such
related parties totaled EUR 88.3 million and EUR 87.8 million at December 31, 2006 and 2007, respectively. The terms extended to related parties are similar to those
extended to unrelated parties. The Bank has also granted a fully collateralized loan to the Lump-Sum Benefit Plan for its employees, a post retirement benefit plan to which the Group does
not pay contributions to, the outstanding balance of which was EUR 63.4 million and EUR 58.8 million on December 31, 2006 and 2007 respectively.

F-54

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 32:    RELATED PARTY TRANSACTIONS (Continued)

In
prior years we disclosed loans to the Hellenic Republic. The Hellenic Republic as at December 31, 2007 was not a related party of the Group.

NOTE 33:    ADDITIONAL PAID-IN CAPITAL

In 2005, following the legal merger of the Bank with National Investment Company, the Bank raised the par value of the shares from EUR 4.50 to
EUR 4.80 thus increasing share capital amount recorded in the balance sheet (by EUR 100,979 thousand in 2005). This capitalization was effected through Additional paid in Capital.
There was no effect on basic and diluted earnings per share.

On
June 1, 2006, the 2nd Repeat General Meeting of the Bank's shareholders approved the share capital increase of EUR 3 billion through a rights issue to
existing shareholders at a ratio of 4 new shares to 10 existing at a price of EUR 22.11 for each new share. The share capital increase was completed and fully subscribed on July 5, 2006
and was authorized by Approval K2-10274/7.7.2006 of the Ministry of Development. Consequently, the Bank's share capital was increased by EUR 678,539 thousand with the issue
of 135,707,764 new shares. The difference from the issue of shares above par value of a total amount of EUR 2,321,960 thousand less the share capital issue costs net of tax of
EUR 64,063 thousand was credited to the "additional paid-in-capital".

On
March 31, 2006, following the legal merger of the Bank with National Real Estate Company, the Bank raised the par value of the shares from EUR 4.80 to EUR 5.00
thus increasing share capital amount recorded in the balance sheet (by EUR 67,854 thousand in 2006). This capitalization was effected through Additional paid-in Capital.
There was no effect on basic and diluted earnings per share.

On
December 21, 2006, following the Bank's stock option program the share capital was increased by EUR 1,550 thousand with the issue of 310,043 shares. The
difference from the issue of shares above par value of a total amount of EUR 5,829 thousand was credited to the "additional paid-in-capital". Furthermore, the
total compensation cost for 2006 from share options amounted to EUR 6,383 thousand and was credited to "additional paid-in-capital".

On
May 25, 2007, the Bank's shareholders at the Annual General Meeting approved the increase of the Bank's share capital by EUR 1,750 thousand through capitalization
of profits. A total of 350,000 common registered shares were issued, of a nominal value of EUR 5.00. The newly issued shares were distributed to the personnel of the Bank as bonus shares. The
total compensation cost for 2007 from bonus shares amounted to EUR 4,336 thousand and was credited to "additional paid-in-capital.

On
November 1, 2007, the BoD of the Bank approved the issue of a further 496,500 share options under the stock options program approved by the repeat General Meeting of
Shareholders on June 22, 2005. Furthermore, on November 1, 2007, the BoD of the Bank approved the issue of a further 3,014,100 share options under the stock options program approved by
the second repeat General Meeting of Shareholders on June 1, 2006. On December 20, 2007, following the completion of the exercise period of the share options that were vested with the
approval of the Board of Directors, a total of 1,561,242 shares were issued, of a nominal value of EUR 5.00 and exercise price of EUR 23.80 for 1,157,667 shares and EUR 23.00 for
403,575 shares.

The
difference from the issue of shares above par value of a total amount of EUR 29,028 thousand was credited to the "additional paid-in-capital".
Furthermore, the total

F-55

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 33:    ADDITIONAL PAID-IN CAPITAL (Continued)

compensation
cost for 2006 derived from share options amounted to EUR 29,457 thousand and was credited to "additional paid-in-capital".

NOTE 34:    EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the year attributable to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year (amounts in EUR thousand, except share and per share data).

|                                                                                    |  | 2005        |  | 2006        |  | 2007       
|----------------------------------------------------------------------------------- |  | ----------- |  | ----------- |  | -----------
|Net income                                                                          |  | 555,194     |  | 858,064     |  | 1,318,791  
|Net income adjusted for diluted computation                                         |  | 555,194     |  | 858,064     |  | 1,318,791  
|Weighted average common shares outstanding at December 31, 2007                     |  | 345,793,420 |  | 417,341,186 |  | 474,892,963
|New shares relating to stock dividend (note 42)                                     |  | 19,067,838  |  | 19,067,838  |  | 19,067,838 
|Adjusted weighted average common shares outstanding                                 |  | 364,861,258 |  | 436,409,024 |  | 493,960,801
|Dilutive shares                                                                     |  |            |  | 35,957      |  | 1,040,965  
|                                                                                    |  |             |  |             |  |            
|Adjusted weighted average common shares outstanding for dilutive earnings per share |  | 364,861,258 |  | 436,444,981 |  | 495,001,766
|Basic EPSIncome from continuing operations                                         |  | 1.44        |  | 1.83        |  | 2.67       
|Basic EPSNet income                                                                |  | 1.52        |  | 1.97        |  | 2.67       
|Diluted EPSIncome from continuing operations                                       |  | 1.44        |  | 1.83        |  | 2.66       
|Diluted EPSNet income                                                              |  | 1.52        |  | 1.97        |  | 2.66       

The per-share computations above reflect the additional shares relating to the stock-dividend as described in note 42(b).

NOTE 35:    REGULATORY MATTERS

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios determined on a
risk-weighted basis, capital (as defined) to assets, certain off-balance sheet items, and the notional credit equivalent arising from the total capital requirements against
market risk, of at least 8%. At least half of the required capital must consist of "Tier I" capital (as defined), and the rest of "Tier II" capital (as defined). The framework applicable
to Greek banks conforms to European Union requirements, in particular the Own Funds, the Solvency Ratio and the Capital Adequacy Directives. However, under the relevant European legislation,
supervisory authorities of the member-states have some discretion in determining whether to include particular instruments as capital guidelines and to assign different weights, within a prescribed
range, to various categories of assets.

As
of December 31, 2007, the Bank was adequately capitalized under the applicable regulatory framework. To be categorized as adequately capitalized the Bank must maintain minimum
total risk-based and Tier I risk based ratios as set forth in the table below. There are no conditions or events since December 31, 2007 that management believes have changed
the Bank's compliance with capital requirements.

F-56

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 35:    REGULATORY MATTERS (Continued)

The Bank's actual capital amounts and ratios are also presented in the table below (amounts are expressed in EUR thousand, except ratios):

|                         |                           | Actual    |           | For Capital Adequacy Purposes Minimum Required |     
|------------------------ | ------------------------- | --------- | --------- | ---------------------------------------------- | ----
|
|As of December 31, 2007: |                           |           |           |                                                |     
|                         | Total Capital             |           | 7,269,038 |                                                | 17.1
|                         | (to Risk-Weighted Assets) |           |           |                                                |     
|Tier 1 Capital           |                           | 6,149,842 |           | 14.5                                           | %   
|                         | (to Risk-Weighted Assets) |           |           |                                                |     
|As of December 31, 2006: |                           |           |           |                                                |     
|                         | Total Capital             |           | 8,071,217 |                                                | 23.1
|                         | (to Risk-Weighted Assets) |           |           |                                                |     
|Tier 1 Capital           |                           | 5,568,561 |           | 15.9                                           | %   
|                         | (to Risk-Weighted Assets) |           |           |                                                |     
|As of December 31, 2005: |                           |           |           |                                                |     
|                         | Total Capital             |           | 4,574,768 |                                                | 16.8
|                         | (to Risk-Weighted Assets) |           |           |                                                |     
|Tier 1 Capital           |                           | 2,525,997 |           | 9.3                                            | %   
|                         | (to Risk-Weighted Assets) |           |           |                                                |     

F-57

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 35:    REGULATORY MATTERS (Continued)

The actual capital amounts and ratios for the Group are presented in the table below (amounts are expressed in EUR thousand, except ratios):

|                         |                           | Actual    |           | For Capital Adequacy Purposes Minimum Required |      
|------------------------ | ------------------------- | --------- | --------- | ---------------------------------------------- | -----
|
|As of December 31, 2007: |                           |           |           |                                                |      
|                         | Total Capital             |           | 5,426,552 |                                                | 10.25
|                         | (to Risk-Weighted Assets) |           |           |                                                |      
|Tier 1 Capital           |                           | 4,881,207 |           | 9.22                                           | %    
|                         | (to Risk-Weighted Assets) |           |           |                                                |      
|As of December 31, 2006: |                           |           |           |                                                |      
|                         | Total Capital             |           | 6,778,382 |                                                | 15.6 
|                         | (to Risk-Weighted Assets) |           |           |                                                |      
|Tier 1 Capital           |                           | 5,377,673 |           | 12.4                                           | %    
|                         | (to Risk-Weighted Assets) |           |           |                                                |      
|As of December 31, 2005: |                           |           |           |                                                |      
|                         | Total Capital             |           | 4,756,946 |                                                | 15.2 
|                         | (to Risk-Weighted Assets) |           |           |                                                |      
|Tier 1 Capital           |                           | 3,854,903 |           | 12.3                                           | %    
|                         | (to Risk-Weighted Assets) |           |           |                                                |      

NOTE 36:    FAIR VALUE OF FINANCIAL INSTRUMENTS

Management uses its best judgment in estimating the fair value of the Group's financial instruments; however, there are inherent weaknesses in any estimation
technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Group could have realized in a sale transaction on
the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends, and have not been re-evaluated or updated subsequent to those
respective dates for the purpose of these consolidated financial statements. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be
different than the amounts reported at each year-end.

The
following information should not be interpreted as an estimate of the fair value of the entire Group. A fair value calculation is only provided for a limited portion of the Group's
assets. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Group's disclosures and those of other companies may not be
meaningful.
The following methods and assumptions were used to estimate the fair values of the Group's financial instruments at December 31, 2006 and 2007:

Cash, deposits, repos, money market investments.The carrying amount of cash, deposits with central bank and other banks,
repurchase and resale agreements and money market investments approximates their fair value.

F-58

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 36:    FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

Trading, marked-to-market through profit or loss and available for sale securities.Fair value of
trading, marked-to-market through profit or loss and available for sale assets, which also is the amount recognized in the consolidated balance sheet, is based on quoted market
prices of comparable instruments. For debt instruments, for which such quoted market prices are not available the fair value is estimated using discounted cash flow analysis based on contractual cash
flows discounted at the corresponding market rates.

Derivative Financial Instruments.All derivatives are recognized on the balance sheet at fair value. For exchange traded
contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow analysis or quoted
prices for instruments with similar characteristics.

Loans.Fair value is estimated using discounted cash flow models. The discount rates are based on current market interest
rates for loans with similar terms to borrowers of similar credit quality. For variable rate commercial loans that re-price frequently (within a relatively short time frame) and have no
significant change in credit risk, fair value is based on carrying amount. Fair value for impaired loans is estimated using discounted cash flow analysis or underlying collateral values, where
applicable.

Deposits.The fair value for demand deposits and deposits with no defined maturity is determined to be the amount payable on
demand at the reporting date. The fair value for fixed-maturity deposits is estimated using discounted cash flow models based on rates currently offered for the relevant product types with similar
remaining maturities.

Other borrowed funds & Long-Term Debt.Fair value is estimated using market prices, or if such are not
available, using a discounted cash flow analysis, based on current market rates of similar maturity debt securities.

F-59

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 36:    FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

The
carrying amount, the amount at which financial instruments are reported in the balance sheet, and the estimated fair value of the Group's financial instruments at December 31,
is presented below. For items, which re-price frequently and/or are short in duration, carrying amount approximates fair value.

|                       |                                                               | 2006 |            | 2007
|---------------------- | ------------------------------------------------------------- | ---- | ---------- | ----
|
|
|Financial Assets:      |                                                               |      |            |     
|                       | Cash and due from banks                                       |      | 1,863,974  |     
|                       | Deposits with central bank                                    |      | 2,110,191  |     
|                       | Securities purchased under agreements to resell               |      | 2,398,097  |     
|                       | Interest bearing deposits with banks                          |      | 2,272,043  |     
|                       | Money market investments                                      |      | 367,653    |     
|                       | Trading assets                                                |      | 7,374,207  |     
|                       | Financial instruments marked to market through profit or loss |      | 5,307,946  |     
|                       | Derivative assets                                             |      | 325,013    |     
|                       | Securities available-for-sale                                 |      | 4,155,066  |     
|                       | Loans, net of allowance                                       |      | 42,532,086 |     
|                       | Accrued interest receivable                                   |      | 700,660    |     
|                       |                                                               |      |            |     
|                       | Total financial assets                                        |      | 69,406,936 |     
|                       |                                                               |      |            |     
|Financial Liabilities: |                                                               |      |            |     
|                       | Total deposits                                                |      | 55,886,085 |     
|                       | Securities sold under agreements to repurchase                |      | 3,037,503  |     
|                       | Derivative liabilities                                        |      | 423,685    |     
|                       | Other borrowed funds                                          |      | 295,243    |     
|                       | Long-term debt                                                |      | 4,445,565  |     
|                       |                                                               |      |            |     
|                       | Total financial liabilities                                   |      | 64,088,081 |     
|                       |                                                               |      |            |     

NOTE 37:    SEGMENT INFORMATION

The Group is a diversified financial services company operating primarily in Greece with operations in various countries including the United Kingdom, SE Europe
(namely Bulgaria, Romania, Serbia, F.Y.R.O.M.), Luxemburg, Cyprus, South Africa, Egypt, the Netherlands (closed down in 2005) and North America operations (United States and Canada, closed down in
2006) and from 2006 in Turkey.

NBG
Group manages its business through the following operating segments:

Banking Greek

The Banking Greek includes retail banking and corporate banking. Retail banking manages all individual customers, professionals, small-medium and small sized
companies (companies with annual turnover of up to EUR 2.5 million). The Bank, through its extended network of branches, offers to its

F-60

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 37:    SEGMENT INFORMATION (Continued)

retail
customers various types of deposit and investment products as well as a wide range of traditional services and products. Corporate banking offers a wide range of products to all large and
medium-sized companies, including deposit accounts, loans (denominated in both euro and foreign currency), foreign exchange and trade services activities.

Banking Foreign

The Group's international banking activities, except Turkish operations, include a wide range of traditional commercial banking services, such as extensions of
commercial and retail credit, trade financing, foreign exchange and taking of deposits.

Banking Turkey

Following the acquisition of Finansbank, the Group's banking activities in Turkey include a wide range of traditional commercial banking services, such as
extensions of commercial and retail credit, trade financing, foreign exchange and taking of deposits of Finansbank and its subsidiaries.

Investment Banking

Investment banking includes financial and investment advisory services to corporate customers.

Global Investment & Private Banking

Global Investment & Private Banking includes all treasury activities, private banking, asset management (mutual funds and closed end funds), custody
services, private equity and brokerage.

Insurance

The Group offers a wide range of insurance products through the subsidiary companies, Ethniki Hellenic General Insurance Company, Bancassurance and Finansbank's
subsidiary.

Other  Greek

It mainly includes proprietary real estate management, hotel and warehousing business.

F-61

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 37:    SEGMENT INFORMATION (Continued)

|                   |                                     | Total Assets |            | Interest Income |       | Interest expense |           | Non-interest income |       | Non-interest expense
|------------------ | ----------------------------------- | ------------ | ---------- | --------------- | ----- | ---------------- | --------- | ------------------- | ----- | --------------------
|
|December 31, 2005: |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | BankingGreek                       |              | 46,975,406 |                 | 78.3  |                  | 1,965,193 |                     | 77.7  |                     
|                   | Banking Foreign                     |              | 8,035,375  |                 | 13.4  |                  | 399,568   |                     | 15.8  |                     
|                   | Investment banking                  |              | 265,454    |                 | 0.4   |                  | 1,331     |                     | 0.1   |                     
|                   | Global Investment & Private Banking |              | 28,865     |                 | 0.0   |                  | 929       |                     | 0.0   |                     
|                   | Insurance                           |              | 1,604,622  |                 | 2.7   |                  | 23,286    |                     | 0.9   |                     
|                   | OtherGreek(1)                      |              | 343,260    |                 | 0.6   |                  | 81        |                     |      |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Continuing operations               |              | 57,252,982 |                 | 95.4  |                  | 2,390,388 |                     | 94.5  |                     
|                   | Discontinued operations             |              | 2,754,517  |                 | 4.6   |                  | 139,069   |                     | 5.5   |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Total                               |              | 60,007,499 |                 | 100.0 |                  | 2,529,457 |                     | 100.0 |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     

|
|

|                   |                                     | Net income before taxes |         | Income Tax (Expense)/Benefit |       | Depreciation and amortization expense
|------------------ | ----------------------------------- | ----------------------- | ------- | ---------------------------- | ----- | -------------------------------------
|
|December 31, 2005: |                                     |                         |         |                              |       |                                      
|                   | BankingGreek                       |                         | 571,328 |                              | 70.8  |                                      
|                   | Banking Foreign                     |                         | 126,942 |                              | 15.7  |                                      
|                   | Investment banking                  |                         | 23,545  |                              | 2.9   |                                      
|                   | Global Investment & Private Banking |                         | 1,274   |                              | 0.2   |                                      
|                   | Insurance                           |                         | 34,785  |                              | 4.4   |                                      
|                   | OtherGreek(1)                      |                         | 1,823   |                              | 0.2   |                                      
|                   |                                     |                         |         |                              |       |                                      
|                   | Continuing operations               |                         | 759,697 |                              | 94.2  |                                      
|                   | Discontinued operations             |                         | 46,773  |                              | 5.8   |                                      
|                   |                                     |                         |         |                              |       |                                      
|                   | Total                               |                         | 806,470 |                              | 100.0 |                                      
|                   |                                     |                         |         |                              |       |                                      

|
|

|                   |                                     | Total Assets |            | Interest Income |       | Interest expense |           | Non-interest income |       | Non-interest expense
|------------------ | ----------------------------------- | ------------ | ---------- | --------------- | ----- | ---------------- | --------- | ------------------- | ----- | --------------------
|
|December 31, 2006: |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | BankingGreek                       |              | 52,490,658 |                 | 69.3  |                  | 2,339,366 |                     | 66.3  |                     
|                   | Banking Foreign                     |              | 10,066,336 |                 | 13.3  |                  | 597,798   |                     | 16.9  |                     
|                   | Banking Turkey                      |              | 10,706,009 |                 | 14.1  |                  | 530,900   |                     | 15.0  |                     
|                   | Investment banking                  |              | 224,552    |                 | 0.3   |                  | 5,403     |                     | 0.2   |                     
|                   | Global Investment & Private Banking |              | 11,976     |                 | 0.0   |                  | 573       |                     | 0.0   |                     
|                   | Insurance                           |              | 1,938,699  |                 | 2.6   |                  | 28,726    |                     | 0.8   |                     
|                   | OtherGreek(1)                      |              | 275,508    |                 | 0.4   |                  | 8         |                     |      |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Continuing operations               |              | 75,713,738 |                 | 100.0 |                  | 3,502,774 |                     | 99.2  |                     
|                   | Discontinued operations             |              |           |                 |      |                  | 29,732    |                     | 0.8   |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Total                               |              | 75,713,738 |                 | 100.0 |                  | 3,532,506 |                     | 100.0 |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     

---

|
|

F-62

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 37:    SEGMENT INFORMATION (Continued)

|                   |                                     | Net income before taxes |           | Income Tax (Expense)/Benefit |       | Depreciation and amortization expense
|------------------ | ----------------------------------- | ----------------------- | --------- | ---------------------------- | ----- | -------------------------------------
|
|December 31, 2006: |                                     |                         |           |                              |       |                                      
|                   | BankingGreek                       |                         | 606,337   |                              | 56.0  |                                      
|                   | Banking Foreign                     |                         | 272,905   |                              | 25.2  |                                      
|                   | Banking Turkey                      |                         | 111,674   |                              | 10.3  |                                      
|                   | Investment banking                  |                         | 40,028    |                              | 3.7   |                                      
|                   | Global Investment & Private Banking |                         | (1,704    | )                            | (0.2  | )                                    
|                   | Insurance                           |                         | (8,611    | )                            | (0.8  | )                                    
|                   | OtherGreek(1)                      |                         | (6,053    | )                            | (0.6  | )                                    
|                   |                                     |                         |           |                              |       |                                      
|                   | Continuing operations               |                         | 1,014,576 |                              | 93.6  |                                      
|                   | Discontinued operations             |                         | 69,326    |                              | 6.4   |                                      
|                   |                                     |                         |           |                              |       |                                      
|                   | Total                               |                         | 1,083,902 |                              | 100.0 |                                      
|                   |                                     |                         |           |                              |       |                                      

|
|

|                   |                                     | Total Assets |            | Interest Income |       | Interest expense |           | Non-interest income |       | Non-interest expense
|------------------ | ----------------------------------- | ------------ | ---------- | --------------- | ----- | ---------------- | --------- | ------------------- | ----- | --------------------
|
|December 31, 2007: |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | BankingGreek                       |              | 61,825,219 |                 | 68.0  |                  | 3,017,118 |                     | 53.8  |                     
|                   | Banking Foreign                     |              | 11,383,090 |                 | 12.5  |                  | 797,626   |                     | 14.2  |                     
|                   | Banking Turkey                      |              | 14,180,871 |                 | 15.6  |                  | 1,747,769 |                     | 31.2  |                     
|                   | Investment banking                  |              | 1,177,722  |                 | 1.3   |                  | 8,417     |                     | 0.2   |                     
|                   | Global Investment & Private Banking |              | 9,030      |                 | 0.0   |                  | 568       |                     | 0.0   |                     
|                   | Insurance                           |              | 2,107,459  |                 | 2.3   |                  | 34,742    |                     | 0.6   |                     
|                   | OtherGreek(1)                      |              | 277,257    |                 | 0.3   |                  |          |                     |      |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Continuing operations               |              | 90,960,648 |                 | 100.0 |                  | 5,606,240 |                     | 100.0 |                     
|                   | Discontinued operations             |              |           |                 |      |                  |          |                     |      |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     
|                   | Total                               |              | 90,960,648 |                 | 100.0 |                  | 5,606,240 |                     | 100.0 |                     
|                   |                                     |              |            |                 |       |                  |           |                     |       |                     

|
|

|                   |                                     | Net income before taxes |           | Income Tax (Expense)/ Benefit |       | Depreciation and amortization expense
|------------------ | ----------------------------------- | ----------------------- | --------- | ----------------------------- | ----- | -------------------------------------
|
|December 31, 2007: |                                     |                         |           |                               |       |                                      
|                   | BankingGreek                       |                         | 832,458   |                               | 51.1  |                                      
|                   | Banking Foreign                     |                         | 389,899   |                               | 23.9  |                                      
|                   | Banking Turkey                      |                         | 376,227   |                               | 23.1  |                                      
|                   | Investment banking                  |                         | 46,495    |                               | 2.8   |                                      
|                   | Global Investment & Private Banking |                         | 3,128     |                               | 0.2   |                                      
|                   | Insurance                           |                         | (15,137   | )                             | (0.9  | )                                    
|                   | OtherGreek(1)                      |                         | (2,788    | )                             | (0.2  | )                                    
|                   |                                     |                         |           |                               |       |                                      
|                   | Continuing operations               |                         | 1,630,282 |                               | 100.0 |                                      
|                   | Discontinued operations             |                         |          |                               |      |                                      
|                   |                                     |                         |           |                               |       |                                      
|                   | Total                               |                         | 1,630,282 |                               | 100.0 |                                      
|                   |                                     |                         |           |                               |       |                                      

---

F-63

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS

a)    Defined Contribution Main Pension Plans Covered by Greek Law 3655/2007

In common with other large companies in Greece that are, or were, in the public sector, the employees of the Bank and certain of our subsidiaries participate in
employee-managed pension schemes.

National Bank of Greece Employee Main Pension Plan

The Bank's employees' Main Pension Plan provides for defined contributions to be made by the Bank at a rate of 26.5% of the employee's salary, for employees who
joined any social security plan prior to January 1, 1993. The corresponding rate for employees insured by any social security fund after that date is 13.33%. Following legislation passed in
April 2008, the Bank's main pension plan will be incorporated into the main pension branch of the state-sponsored social security fund IKA-ETAM as of August 1, 2008. Pursuant to this
legislation, which must be enacted by Ministerial Decree in order to come into force, the Bank will contribute EUR 25.5 million into IKA-ETAM per year for 15 years starting from
December 2009. The Bank has contested these payments as unfair compared to those imposed to other banks and has reserved all legal rights. The April 2008 legislation also prescribes that employer
contributions made by the Bank to the existing funds to be merged into IKA-ETAM, will be reduced every three years in equal increments, starting in 2013 from 26.5% until they reach 13.33% for
employees who joined any social security plan prior to January 1, 1993. Employee contributions, for employees insured by any social security fund before 1.1.1993, will be reduced to 6.67% in
the same period, from 11%. Employees insured by any social security fund after 1.1.1993 already pay contributions at 6.67%. Contributions made to this fund by the Bank totaled
EUR 93.8 million, EUR 98.2 million and EUR 107.1 million in 2005, 2006 and 2007 respectively.

Ethniki Hellenic General Insurance Co ("EH") Employee Plan (T.A.P.E.)

The main pension branch of EH post retirement and health plan will also be incorporated into the main pension branch of the state-sponsored social security fund
IKA-ETAM as of August 1, 2008. Employer contributions made by EH to the existing funds to be merged into IKA-ETAM, will be reduced every three years in equal increments until they are reduced
to 13.33% from 20% for employees who joined any social security plan prior to January 1, 1993. T.A.P.E. also provides for health benefits to its members. Employer contributions to this plan
totaled EUR 10.8 million both in 2005 and 2006 and EUR 11.1 million in 2007.

b)    Defined Contribution Plans Covered by Greek Law 2084/1992 and 2556/1997

Group employees participate in auxiliary pension plans governed by Greek Law 2084/1992 as amended by Law 2556/1997. Similar to the "main" plans above, the
employees of the Bank and several of its subsidiaries participate in auxiliary pension funds rather than participating in state-sponsored auxiliary social security schemes. These plans, described
below, have contribution rates and benefit schemes that
are determined by Ministerial Decree. As such, these plans are substitutes for standard Greek employees' auxiliary social security benefits typically available to employees in other Greek companies.

New
legislation passed in 2005 and 2006 (Law 3371/2005, as amended) as mentioned previously, provides that employees that were hired by the Bank from January 1, 2005 and
thereafter are insured in the state auxiliary pension plan IKA-ETEAM. Employees hired before January 1, 2005 and

F-64

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS (Continued)

pensioners
of the bank will also be covered by the same plan should the interested parties (employees and employers) decide to dissolve the Bank's auxiliary plan. In this case employees will be
expected to make contributions to this fund, which will be a percentage of the salaries paid. The exact percentage will be assessed through a special financial study. The new law also provides for the
creation of a new Insurance Fund of Bank Employees and pensioners insured in the social security system before January 1, 1993 ("ETAT"), that will pay additional benefits to the aforementioned
employees and pensioners, being the difference between those provided by the existing auxiliary plan and those provided by IKA-ETEAM.

In
April 2006, the Bank applied under Law 3371/2005, as amended, to merge its Auxiliary Pension Fund into ETAT. An independent financial study commissioned by the Ministry of Finance
pursuant to this legislation will be carried out to assess the contribution of the employer to the fund.

National Bank of Greece Auxiliary Pension Plan

The Bank's employees' Auxiliary Pension Plan provides for defined contributions to be made by the Bank at a rate of 9.0% of the employee's salary. Such
contributions totaled EUR 33 million, EUR 35.5 million and EUR 39.3 million in 2005, 2006 and in 2007 respectively. Employees contribute at a rate of 3.5% of
their salary. The benefits paid by the Fund are determined by a formula, which takes into account years of service with the Bank and the employee's final pensionable pay.

c)     Defined Contribution Plans Other Than Pensions

National Bank of Greece Health Plan (T.Y.P.E.T.)

T.Y.P.E.T. is accounted for as a defined contribution plan according to Law 3029/2002. The Bank has no legal obligation to contribute any amounts in excess of its
defined contributions of 6.25% of employees' salaries. Contributions to this plan totaled EUR 22.7 million, EUR 24.9 million and EUR 27.8 million in 2005,
2006 and in 2007 respectively.

T.A.P.E.
mentioned above also falls into this category.

d)    Other Defined Contribution Plans

The Group makes contributions to other defined contribution pension plans. Group contributions to these plans totaled approximately EUR 1.1 million,
EUR 2.4 million and EUR 2.9 million in 2005, 2006 and 2007 respectively.

e)     National Bank of Greece Lump Sum Benefit Plan

The Bank does not make any contributions to this plan. The Bank has granted a loan to the plan, the outstanding balance of which was
EUR 63.4 million and EUR 58.8 million on December 31, 2006 and 2007 respectively, maturing in 2020, bearing interest at three-month Euribor and fully collateralized.

f)     Defined Benefit Pension Plans

In addition to the plans discussed above, the Bank and certain of its subsidiaries sponsor defined benefit pension plans. The plans vary in their specific
features, but most are contributory, final pay and

F-65

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS (Continued)

accumulated
years of service-based defined benefit plans. The funding policies vary slightly but typically include employee and employer monthly contributions in accordance with Greek or local laws
regarding such plans. Some companies within the Group also provide termination indemnities.

Net
periodic pension costs for these defined benefit plans include the following components for the years ended December 31:

|                                 |  | 2005   |   | 2006   |   | 2007    |  
|-------------------------------- |  | ------ | - | ------ | - | ------- | -
|
|Service cost                     |  | 11,625 |   | 11,777 |   | 14,327  |  
|Interest cost                    |  | 17,729 |   | 15,310 |   | 17,688  |  
|Expected return on plan assets   |  | (7,523 | ) | (8,740 | ) | (10,982 | )
|Amortization of actuarial losses |  | 4,685  |   | 5,298  |   | 3,536   |  
|Amortization of prior year cost  |  | 53     |   | 393    |   | 81      |  
|Costs of additional benefits     |  | 2,386  |   | 38,793 |   | 36,782  |  
|Other expense                    |  | 5,670  |   | 557    |   | 402     |  
|                                 |  |        |   |        |   |         |  
|Net periodic pension cost        |  | 34,625 |   | 63,388 |   | 61,834  |  
|                                 |  |        |   |        |   |         |  

Included in cost of additional benefits in 2006 are costs of voluntary retirement schemes of Group companies National Management and Organization
Company ("Ethnokarta") EUR 15.6 million, Ethniki Insurance EUR 15.0 million and ASTIR Palace Vouliagmenis EUR 8.0 million, as well as small costs of
additional payments to employees by Group banks UBB and Stopanska.

Included
in cost of additional benefits in 2007 are costs of voluntary retirement schemes of Group companies: Ethniki Insurance EUR 29.5 million, the former National
Management and Organization Company ("Ethnokarta") which was merged into the Bank in October 2007 EUR 5.0 million and ASTIR Palace Vouliagmenis EUR 1.4 million, as well as
small costs of additional payments to employees mainly by Group banks Finansbank A.S. and Vojvodjanska.

Weighted
average assumptions used to determine the net periodic pension cost for the years ended December 31:

|                               |  | 2005 |   | 2006 |   | 2007 |  
|------------------------------ |  | ---- | - | ---- | - | ---- | -
|Discount rate                  |  | 5.2  | % | 4.3  | % | 4.7  | %
|Expected return on plan assets |  | 6.3  | % | 6.4  | % | 7.5  | %
|Rate of compensation increase  |  | 4.1  | % | 4.1  | % | 4.6  | %

To set the expected long-term rate of return assumptions the Group, in consultation with its advisors, uses forward-looking
assumptions in the context of historical returns and volatilities of each asset class as well as correlations among asset classes. The expected long-term rate of return assumption is
annually adjusted based on revised expectations of future investment performance of the overall capital markets, as well as changes to local regulations affecting investment
strategy. The weighted average expected long-term rate of return assumption used in computing the 2007 net periodic pension cost was 7.5%.

F-66

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS (Continued)

The
aggregated funding status recognized in the consolidated balance sheet is reconciled below as follows for the years ended December 31:

|                                              |                                             | 2005    |         | 2006    |         | 2007    |        
|--------------------------------------------- | ------------------------------------------- | ------- | ------- | ------- | ------- | ------- | -------
|
|Change in pension benefit obligation ("PBO"): |                                             |         |         |         |         |         |        
|                                              | PBO, beginning of year                      |         | 400,240 |         | 372,109 |         | 392,106
|                                              | Acquisition/Disposal of subsidiaries        |         |        |         | 8,236   |         | 5,226  
|                                              | Discontinued operations                     |         | (26,730 | )       |        |         |       
|                                              | Service cost                                |         | 11,625  |         | 11,777  |         | 14,327 
|                                              | Interest cost                               |         | 17,729  |         | 15,310  |         | 17,688 
|                                              | Employee contributions                      |         | 6,451   |         | 6,128   |         | 7,366  
|                                              | Actuarial loss (gain)                       |         | 32,704  |         | 19,210  |         | (4,109 
|                                              | Adjustment for disposal and other           |         | 1,722   |         | 231     |         | 920    
|                                              | Benefits paid from the Fund                 |         | (42,016 | )       | (33,773 | )       | (25,823
|                                              | Benefits paid directly by the company       |         | (20,964 | )       | (34,144 | )       | (21,554
|                                              | Settlements/Terminations/Curtailments       |         | (8,652  | )       | 26,763  |         | 27,259 
|                                              | Prior service cost arising over last period |         |        |         | 259     |         | 35     
|                                              |                                             |         |         |         |         |         |        
|PBO, end of year                              |                                             | 372,109 |         | 392,106 |         | 413,441 |        
|                                              |                                             |         |         |         |         |         |        

|
|

|                           |                               | 2005     |         | 2006     |         | 2007     |        
|-------------------------- | ----------------------------- | -------- | ------- | -------- | ------- | -------- | -------
|
|Change in plan assets:     |                               |          |         |          |         |          |        
|                           | Fair value, beginning of year |          | 156,267 |          | 141,172 |          | 146,402
|                           | Discontinued operations       |          | (24,612 | )        |        |          |       
|                           | Actual return on assets       |          | 34,042  |          | 8,871   |          | 41,762 
|                           | Employer contributions        |          | 11,039  |          | 24,141  |          | 13,486 
|                           | Employee contributions        |          | 6,451   |          | 6,128   |          | 7,366  
|                           | Expenses                      |          |        |          | (158    | )        |       
|                           | Benefits paid                 |          | (42,016 | )        | (33,773 | )        | (25,823
|                           |                               |          |         |          |         |          |        
|Fair value, end of year    |                               | 141,171  |         | 146,381  |         | 183,193  |        
|                           |                               |          |         |          |         |          |        
|Funded status, end of year |                               | (230,938 | )       | (245,725 | )       | (230,248 | )      
|                           |                               |          |         |          |         |          |        

The weighted-average assumptions used in determining the benefit obligation of such plans at December 31 are as follows:

|                              |  | 2005 |   | 2006 |   | 2007 |  
|----------------------------- |  | ---- | - | ---- | - | ---- | -
|Discount rate                 |  | 4.4  | % | 4.7  | % | 5.4  | %
|Rate of compensation increase |  | 4.1  | % | 4.6  | % | 4.6  | %
|Pension increase              |  | 2.5  | % | 2.5  | % | 2.5  | %

The accumulated benefit obligation as of December 31, 2006 and 2007 was EUR 294,667 thousands and
EUR 330,655 thousands, respectively.

F-67

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS (Continued)

Additional
year-end information for pension plans with accumulated benefit obligations in excess of plan assets:

|                               |  | 2006    |  | 2007   
|------------------------------ |  | ------- |  | -------
|
|Projected benefit obligation   |  | 265,269 |  | 283,145
|Accumulated benefit obligation |  | 200,912 |  | 224,828
|Fair value of plan assets      |  | 49,535  |  | 54,488 

For the financial year ended December 31, 2005, the Group recognized a pension liability in other comprehensive income and an intangible
asset, to the extent where the accumulated benefit obligation exceeded the fair value of plan assets. On December 31, 2005, past service cost amounted to EUR 0.7 million and
actuarial loss amounted to EUR 75 million. Of the aforementioned amounts EUR 0.7 million was recognized as an intangible asset and EUR 34.0 million was
recognized as a pension liability on December 31, 2005.

On
December 31, 2006, the Group adopted SFAS 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements
No. 87, 88, 106, and 132(R)" which requires the recognition of a plan's over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated OCI.
SFAS 158 requires the determination of the fair values of a plan's assets at a company's year-end and recognition of actuarial gains and losses, prior service costs or credits, and
transition assets or obligations as a component of Accumulated OCI. These amounts will be subsequently recognized as components of net periodic benefit costs.

Further,
actuarial gains and losses that arise in subsequent periods that are not initially recognized as a component of net periodic benefit cost will be recognized as a component of
Accumulated OCI. Those amounts will subsequently be recognized as a component of net periodic benefit cost as they are amortized during future periods. The adoption of SFAS 158 had no effect on
the Group's Consolidated Statement of Income for the year ended December 31, 2006, or for any year presented.

The
amount recognized in the statement of financial position on December 31, 2006 and 2007 respectively was EUR 245.7 million and EUR 230.2 million.
Amounts recognized in accumulated other
comprehensive income on December 31, 2006 and 2007 respectively were a transition obligation of nil and nil, past service cost of EUR 0.5 million and EUR 0.4 million
and net actuarial losses of EUR 77.1 million and EUR 28.9 million.

Included
in Other Comprehensive Income as at December 31, 2006 is EUR 5.4 million relating to our associated company AGET Heracles, which was sold in April 2007.

The
estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit cost during financial year 2008 are EUR 0.05 million of prior
service cost and EUR 1.1 million of net actuarial loss.

F-68

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 38:    EMPLOYEE BENEFIT PLANS (Continued)

The
following table indicates actual and targeted plan asset allocation for the Group's funded defined benefit pension plans:

|                |                   | Target Allocation |         | Percentage of Plan Assets as at December 31 |   
|--------------- | ----------------- | ----------------- | ------- | ------------------------------------------- | --
|
|Asset category: |                   |                   |         |                                             |   
|                | Equity securities |                   | 65%-80% |                                             | 75
|                | Real estate       |                   | 3%-10%  |                                             | 2 
|                | Other             |                   | 15%-35% |                                             | 23
|                |                   |                   |         |                                             |   
|                |                   |                   |         | 100                                         | % 
|                |                   |                   |         |                                             |   

The overall investment objective of the Group is to optimize returns at an acceptable level of risk within the requirements of the local laws,
where applicable.

Equity
securities include common stock of the Bank at the amount of EUR 103.2 million (70.5% of total plan assets) and EUR 137.8 million (75% of total plan
assets) at December 31, 2006 and 2007 respectively. As at December 31, 2007 the Bank's shares included in the plan assets were 2.9 million (no shares purchased and 23,000 shares
sold during 2007). Dividends received on such shares during 2007 amount to EUR 3 million. There was no Group debt included in the Plan Assets in 2006 and 2007 respectively.

Benefit
payments projected to be made from the defined benefit Pension Plans are as follows:

|          |  | Benefit payments projected
|--------- |  | --------------------------
|
|2008      |  | 71.650                    
|2009      |  | 19.165                    
|2010      |  | 26.287                    
|2011      |  | 31.049                    
|2012      |  | 29.629                    
|2013-2017 |  | 200.140                   

The Group expects to contribute EUR 13 million in 2008 with respect to defined benefit plans.

NOTE 39:    SHARE BASED PAYMENT

On June 22, 2005, at a General Meeting of Shareholders, a stock option program ("Program A") was approved for the executive members of the Board of
Directors, management and staff of the Group. The maximum number of new ordinary shares to be issued under Program A was set at €2.5 million and adjusted to
€3.5 million as a consequence of the 4 to 10 share capital increase in 2006. Program A shall last for five years and expires in 2010.The strike price shall be within the range
of EUR 5 per share to 70% of the average market price thereof within the time period from January 1 of the year the options are granted until the date they can be exercised.

F-69

---



NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 39:    SHARE BASED PAYMENT (Continued)

At
the repeat General Meeting of Shareholders on June 1, 2006, a new Group-wide stock option program ("Program B") was approved for the Bank's executive members of the
Board of Directors, management and staff of the Group. The maximum number of new ordinary shares to be issued under Program B was set at €2.5 million and adjusted to
€3.5 million as a consequence of the 4 to 10 share capital increase in 2006. Program B shall last five years and expires in 2011.The strike price shall be within a range of EUR
5 per share to 70% of the average market price thereof within the time period from the date following the date of the General Meeting (i.e. June 1, 2006).

On
June 28, 2007 the repeat General Meeting of the Shareholders of the Bank approved a new Group-wide stock option plan ("Program C") for the Bank's executive members
of the Board of Directors, management and staff of the Group. The new Program shall last eight years and expires in 2015. The stock option must be granted up until 2010. The maximum number of new
ordinary shares to issue under the Program C shall be 12 million. The maximum number of options that can be granted per year cannot exceed 1% of the total number of ordinary shares outstanding.
The strike price shall be within the range of €5 to 85% of the average price thereof within the time period from January 1 of the year the options are granted until the
October 31, of the same year. No options have yet been issued under this program.

On
November 29, 2006, the Board of Directors approved the issue of 2,992,620 share options under the Program A. The exercise price was set at EUR 23.8 per share. The fair value of
the granted share options amounted to EUR 32.6 million. The vesting conditions were as follows:



The
vested options are exercisable between December 6 and December 15 for 2006 and between December 1 and December 10 for each subsequent year until 2010.
After that date any unexercised options are cancelled. The options are forfeited if the employee leaves or is fired with cause from the Group before the options vest.

Between
December 6 and 15, 2006, 310,043 out of a maximum 448,893 vested share options, with fair value of EUR 3.4 million, were exercised. The balance of 138,850 vested
share options had not been exercised by December 31, 2006. The total cash received from the exercised share options amounted to EUR 7,379, of which EUR 1,550 increased common stock while the
remaining the additional paid-in capital.

On
November 1, 2007, the BoD of the Bank approved the issue of an additional 496,500 share options under Program A with the same exercise price. The vesting conditions were as
follows:



Therefore,
the total shares granted under Program A amounted to 3,489,120.

F-70

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NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 39:    SHARE BASED PAYMENT (Continued)

On
November 1, 2007, the Board of Directors approved the issuance of 3,014,100 share options under Program B. The exercise price was set at €23.00 per share. The
vesting conditions were as follows:



The
vested options are exercisable as follows:



After
that date the unexercised options are cancelled. The options are forfeited if the employee is fired from the Group with cause before the options are exercised.

Between
December 1 and 10, 2007, 1,561,242 out of a maximum 1,702,149 vested share options were exercised. The balance of 140,907 vested share options has not been exercised by
December 31, 2007.

F-71

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NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 39:    SHARE BASED PAYMENT (Continued)

Details
of the share options outstanding during the period to December 31, 2007 and December 31, 2006 are as follows:

|Stock options                                |  | Balance   |   | Average price |  | Weighted average remaining contractual term |  | Aggregate Intrinsic value
|-------------------------------------------- |  | --------- | - | ------------- |  | ------------------------------------------- |  | -------------------------
|
|Outstanding at January 1, 2006               |  |          |   |              |  |                                             |  |                          
|Granted during the year                      |  | 2,992,620 |   | 23.80         |  |                                             |  |                          
|Exercised during the year                    |  | (310,043  | ) | 23.80         |  |                                             |  | 3,441,477                
|                                             |  |           |   |               |  |                                             |  |                          
|Outstanding at December 31, 2006             |  | 2,682,577 |   | 23.80         |  | 3.97                                        |  | 29,776,602               
|                                             |  |           |   |               |  |                                             |  |                          
|Vested but not exercised at December 31,2006 |  | 138,850   |   | 23.80         |  | 3.97                                        |  | 1,541,233                
|                                             |  |           |   |               |  |                                             |  |                          

|
|

|Stock options                                 |  | Balance    |   | Average price |  | Weighted average remaining contractual term |  | Aggregate Intrinsic value
|--------------------------------------------- |  | ---------- | - | ------------- |  | ------------------------------------------- |  | -------------------------
|
|Outstanding at January 1, 2007                |  | 2,682,577  |   | 23.80         |  |                                             |  |                          
|Granted during the year                       |  | 3,510,600  |   | 23.11         |  |                                             |  |                          
|Cancelled during the year                     |  | (18,720    | ) | 23.80         |  |                                             |  |                          
|Exercised during the year                     |  | (1,561,242 | ) | 23.59         |  |                                             |  | 36,516,514               
|                                              |  |            |   |               |  |                                             |  |                          
|Outstanding at December 31, 2007              |  | 4,613,215  |   | 23.35         |  | 3.23                                        |  | 108,535,144              
|                                              |  |            |   |               |  |                                             |  |                          
|Vested but not exercised at December 31, 2007 |  | 140,907    |   | 23.55         |  | 2.96                                        |  | 3,301,456                
|                                              |  |            |   |               |  |                                             |  |                          

The average exercise price per option was EUR 23.80 and EUR 23.55 for 2006 and 2007 respectively and the weighted average remaining
contractual term of options outstanding is 3.97 and 3.23 years for 2006 and 2007 respectively. As of December 31, 2007, there was EUR 19.8 million of total unrecognized
compensation cost related to non vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.1 years.

The
estimated fair value of the options granted is EUR 10.91 and EUR 17.66 for each option for 2006 and 2007 respectively. The total fair value of options vested during
2006 and 2007 was EUR 4,897 thousand and EUR 20,639 thousand. This fair value was calculated using the Black-Scholes option-pricing model. The inputs into the model were as
follows:

|Option pricing modelInputs     |  | 2006      |   | 2007      |  
|------------------------------- |  | --------- | - | --------- | -
|Share price                     |  | EUR 34.62 |   | EUR 41.00 |  
|Weighted Average Exercise price |  | EUR 23.80 |   | EUR 23.12 |  
|Exercise period (years)         |  | 1.96      |   | 2.02      |  
|Expected volatility             |  | 20.0      | % | 24.0      | %
|Risk free rate                  |  | 3.9       | % | 4.4       | %
|Expected dividend yield         |  | 2.7       | % | 2.1       | %

F-72

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NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 39:    SHARE BASED PAYMENT (Continued)

The weighted average expected volatility was determined by calculating the historical volatility of the Bank's share price over the last
18 months. Also, expected future volatility has been taken into account.

According
to the terms of the program the vested options are recognized in the income statement whereas the outstanding options that will vest in future periods affect the income
statement on a
straight-line basis over the vesting period. The total expense recognized during 2007 amounted to EUR 29.5 million.

NOTE 40:    ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive income, net of taxes, comprise:

|                           |  | Foreign Currency Items |   | Unrealized Gains/(Losses) on Available-for-Sale Securities |   | Pension liability |   | Accumulated Other Comprehensive Income |  
|-------------------------- |  | ---------------------- | - | ---------------------------------------------------------- | - | ----------------- | - | -------------------------------------- | -
|
|Balance, January 1, 2005   |  | (30,141                | ) | 64,129                                                     |   | (18,796           | ) | 15,192                                 |  
|Changes during 2005        |  | 24,520                 |   | (27,779                                                    | ) | (9,611            | ) | (12,870                                | )
|                           |  |                        |   |                                                            |   |                   |   |                                        |  
|Balance, December 31, 2005 |  | (5,621                 | ) | 36,350                                                     |   | (28,407           | ) | 2,322                                  |  
|Changes during 2006        |  | (2,103                 | ) | (10,206                                                    | ) | 18,589            |   | 6,280                                  |  
|                           |  |                        |   |                                                            |   |                   |   |                                        |  
|Impact of SFAS 158         |  |                       |   |                                                           |   | (57,337           | ) | (57,337                                | )
|                           |  |                        |   |                                                            |   |                   |   |                                        |  
|Balance, December 31, 2006 |  | (7,724                 | ) | 26,144                                                     |   | (67,155           | ) | (48,735                                | )
|Changes during 2007        |  | 315,070                |   | (38,281                                                    | ) | 43,006            |   | 319,795                                |  
|                           |  |                        |   |                                                            |   |                   |   |                                        |  
|Balance, December 31, 2007 |  | 307,346                |   | (12,137                                                    | ) | (24,149           | ) | 271,060                                |  
|                           |  |                        |   |                                                            |   |                   |   |                                        |  

NOTE 41:    FOREIGN EXCHANGE POSITION

At December 31, 2007, the EUR equivalent of the assets and liabilities, which are denominated in foreign currency, amounted to
EUR 22,040,272 thousand (EUR 17,585,672 thousand for 2006 and EUR 9,075,938 thousand for 2005) and EUR 22,483,810 thousand
(EUR 18,526,823 thousand for 2006 and EUR 12,233,803 thousand for 2005), respectively.

NOTE 42:    POST BALANCE SHEET EVENTS

(a)   Mergers, acquisitions and disposals

In February 2008 the Bank established two wholly owned subsidiary companies, NBG Finance (Dollar) and NBG Finance (Sterling).

(b)   Other

On April 17, 2008 the General Meeting of the Bank's shareholders approved the distribution of dividend of EUR 1.4 per share with May 16, 2008
being the ex-dividend date. On May 15, 2008, the General Meeting of the Bank's shareholders approved the distribution of the above dividend partly in the form of EUR 0.40
cash dividend and partly in the form of shares, by issuing four new shares for

F-73

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NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 42:    POST BALANCE SHEET EVENTS (Continued)

every
one hundred shares held as of May 15, 2008. Following this resolution, the Bank will issue 19,067,838 new shares with a nominal value of EUR 5 per share to existing shareholders
without payment. Following this share capital increase, the share capital will amount to EUR 2,481,331 divided to 496,266,299 shares.

On
May 16, 2008, the Board of Directors of the ATHEX approved for trading the 19,067,838 new common shares of the Bank derived from the above mentioned stock dividend with
effective date May 23, 2008.

On
May 15, 2008, the second repeat General Meeting of the Bank's shareholders authorized the Board of Directors to increase the share capital of the Bank through the issue of
common shares with a preemptive right in favor of old shareholders (pursuant to Article 13 of the Companies Act), within a period of three years from the date of this General Meeting resolution
and up to the amount that corresponds to 50% of the Bank's paid up share capital.

On
May 15, 2008, the second repeat General Meeting of the Bank's shareholders approved the Bank's share capital increase for up to EUR 1.5 billion through the issue
of redeemable preference shares (pursuant to Article 17b of the Companies Act) with abolition of existing shareholders' preemptive right.

On
April 21, 2008, the Bank acquired 7,340,000 shares in the Greek Postal Savings Bank (PSB) via the ATHEX at a price of EUR 13.25 per share. The shares acquired
correspond to a 5.16% shareholding in PSB. Together with the 816,000 PSB shares (0.57% of PSB share capital) already owned by NBG, NBG's total shareholding in PSB has increased to 5.74%.

On
April 17, 2008, the Bank's Annual General Meeting of the Shareholders approved an own shares buy-back program pursuant to Article 16 par. 5 et seq. of
Codified Law 2190/1920, providing for the purchase, by the Bank, of up to 10% of its total shares from May 25, 2008 through May 24, 2009, at a minimum price of EUR 5 and a maximum
of EUR 60 per share.

On
January 10, 2008, the Board of Directors of the ATHEX approved for trading the 1,561,242 new common shares of the Bank derived from the exercised stock options. Following the
approval of the ATHEX, the Board of Directors of the Bank determined that effective January 17, 2008 onwards the said shares are traded in ATHEX.

On
January 3, 2008, the General Meetings of the Shareholders of Vojvodjanska Bank and NBG A.D. Belgrade approved the merger of the two banks through the absorption of the second
by the first. The merger was approved by the Central Bank of Serbia on February 5, 2008 and was completed on February 14, 2008.

NOTE 43:    RECLASSIFICATION

Certain
amounts in prior periods have been reclassified to conform to the current presentation and to reflect the disposal of ABNY and NBG Canada (see Note 19 "Assets and
liabilities held for sale and discontinued operations").

F-74

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