EBA Board Report 2017

CONTENT AN INTRODUCTION BY THE CHAIRMAN ....................................................... 4 AN INTRODUCTION BY THE SECRETARY GENERAL ........................................ 7 1. REPORT ON EBA ACTIVITIES IN 2017 AND OUTLOOK FOR 2018+ .............. 12 1.1 REPORT ON WORK STREAMS IN 2017.....................................................................................12 1.2 GOVERNANCE REVIEW .............................................................................................................19 1.3 MARKETING AND COMMUNICATIONS .....................................................................................20 1.4 CHANGES IN THE BOARD OF THE ASSOCIATION ...................................................................21 BOARD OF THE EURO BANKING ASSOCIATION ................................................... 22 1.5 CHANGES IN EBA MEMBERSHIP ..............................................................................................25 1.6 OUTLOOK FOR 2018+ ................................................................................................................26 2. FINANCIAL SITUATION, P&L STATEMENT AS AT 31 DECEMBER 2017 ......... 30 2.1 OVERALL EXPENSES INCURRED IN 2017 ................................................................................30 2.2 REVENUES IN 2017 ....................................................................................................................31 2.3 INCOME TAX AND RESULTS FOR 2017.....................................................................................32 2.4 EBA BUDGET FOR 2018 ............................................................................................................32 2.5 PROJECTED REVENUES FOR 2018 ..........................................................................................33 EBA FINANCIALS 2017-2018 .................................................................................... 35 P&L STATEMENT – REVENUES ...........................................................................................................35 P&L STATEMENT – CHARGES ..............................................................................................................36 P&L STATEMENT – SUMMARY ............................................................................................................37 APPENDIX 1 ............................................................................................................. 38 APPENDIX 2 .............................................................................................................. 39 REPORT OF THE BOARD 2017 3

AN INTRODUCTION BY THE CHAIRMAN It was in 1984 that Walter Wriston, at that time CEO of Citibank, made a comment that has only gained in relevance since: “Information about money has become as important as money itself.” With PSD2 applying since January 2018 and fully-regulated access to payment accounts following in 2019, both market players and the media have been zooming in more closely on business opportunities focussing on data as the new oil of the digital economy. And there were other payment-related topics repeatedly hitting the headlines in 2017 and early 2018. For cryptotechnologies, the news oscillated between positive announcements of test-bed or even live solutions and concerns around speculation risks or carbon footprints of Bitcoin and other cryptocurrencies. In late 2017, instant payments made their market entry and are currently ramping up in reach and volume thanks to a major collective supply side effort. The rising interest in these topics among stakeholders has shown in the skyrocketing download figures for the EBA’s open banking online material since the turn of the year. It was also palpable in the animated discussion among corporate representatives at our recent Open Forum on Pan-European Instant Payments. And these developments are probably only the first signs of an evolving ecosystem getting ready for further action, such as the mass-scale roll-out of instant payments products and the general build-up of an open banking environment. In the light of these major ecosystem and topical developments, the Euro Banking Association pursued in 2017 a governance review for which we had secured the mandate of our members at the Annual General Meeting 2017. This review focussed, among other things, on the evaluation of our value proposition and a review of the membership structure. At a time where bank leaders are redefining their institutions as software companies or service platforms, we set out to investigate via a member survey and a peer review whether our long-standing mission, value proposition and membership structure were still fit for purpose or whether we needed to optimise or adapt the Association’s positioning and composition. The aim was to ensure that the Euro Banking Association continues to have the necessary relevance, flexibility and clout to serve the needs of its community for the benefit of the wider European payments ecosystem. I would like to take this opportunity to thank again our members for contributing to this survey and the follow-up interviews. Our members strongly confirmed that EBA continues to have a relevant role to play as the pan-European payment practitioners' community, especially with regard to providing guidance in an environment that is steadily increasing in complexity. Our work in the area of practical guidance on regulatory and innovation topics are what our members rate most highly; this is closely followed by the practitioners’ exchange we facilitate. Our value proposition is appreciated and seen as unique and we were asked to strengthen rather than change it. We also noted that we should work on further reinforcing the visibility of our activities as well as our economic sustainability to secure a sound future basis for our activities. 4

In line with this mandate for optimisation rather than transformation, we strengthened our mission statement and value proposition definitions and put together a proposal for a new membership structure aimed at providing the Association with the necessary long-term financial stability to carry out the tasks required and valued by our members. These long-term measures, which are part of our EBA future positioning package, were presented to our members at different meetings in preparation of their submission to the AGM 2018. In parallel, we have also already started to go for some quick wins, such as beefing up our online and social media communication. Our main efforts over the past year, however, went into further widening and deepening the activities most valued by our members: the development of our work streams on market practice, regulatory and thought leadership guidance. The present Report of the Board will give you a detailed overview of our deliverables in 2017 and beyond. I would just like to mention here two new work streams that we have kicked off over the past year: the Liquidity Management Working Group, which will publish a first paper zooming in on corporate needs at EBAday 2018, and SMART2, which has started to dig into practical issues around SCT Inst-related processing that might benefit from being addressed by an infrastructure-neutral practitioners’ group at pan-European level. REPORT OF THE BOARD 2017 5

Both work streams have been very strongly embraced by our members; we have just opened the Liquidity Management Working Group to our Associate members and are looking forward to their input on the topics the group will start tackling as from this summer. As today’s trends in payments and transaction banking more often than not feed on each other and are impacting the industry at a global level, we have also intensified our efforts to bring a variety of expertise from other regions into our different networking and educational events. I especially look forward to this year’s pre-EBAday morning session of the Open Forum on Open Banking on 12 June, where guests from several continents will provide insights into key developments and trends in their respective regions. Conversely, we are sharing relevant insights into our European experience with an international audience at our global seminars, which will see a second edition this year in Singapore on 17 and 18 October. While trends may become increasingly global, we all know from experience that their impact is always felt locally. That is why, at the same time as we are intensifying our global exchanges on payments trends, we have also started to deepen our footprint in the European market through the organisation of regional and local information and networking sessions. These events, which are often held in the local language, bring together local experts engaged in our working groups with their peers for an in-depth dialogue among practitioners. Finally, the EBA also provides a place where both global and pan-European trends and a wide range of representatives from local communities come together: EBAday, our flagship conference. Going into its 13th year, EBAday is expected to welcome another record-breaking number of payment practitioners in Munich this year. The event certainly embodies most of the qualities and delivers many of the benefits that our members and stakeholders value about the EBA: expert insights and guidance on thought leadership topics, regulatory developments and market practices as well as discussion and networking opportunities at a pan-European level. With this success story in mind, my fellow Board members and I, together with our Secretary General and the whole EBA Team, will continue our work on evolving the Association in a way that it will continue serving the needs of our membership based on our pan-European vision and co-operative approach. And we will continue this journey together with the support and input of the more than 700 active participants involved in our working groups, our practitioner initiatives, open fora and educational activities. Wolfgang Ehrmann 6

AN INTRODUCTION BY THE SECRETARY GENERAL Do you remember when a mobile phone stopped being just a phone? Eight or nine years ago, on an EBAday panel, a representative of a challenger PSP mentioned that she initially had not believed in the success of equipping mobile phones with a camera, because who would want to use a phone for taking pictures? As we are all well aware, cameras on smart phones have come to serve many more purposes than just taking snapshots. They enable a wide range of functions that have helped turn our mobiles into the omnipresent smart tools that support our daily lives and work. What will be the questions we will ask each other when we look back a few years from now: do you remember when a payment stopped being just a payment? Do you remember when a payment account was just a payment account? Or maybe: do you remember when an account-holding bank was just an AS-PSP? You may argue that in our specialist world, a payment has never just been a payment, but rather the result of collective agreements, major standardisation initiatives and the systems and interfaces putting them into reality. But the truth is that the underlying aim of much of the industry’s efforts has remained the same throughout the years: to transfer money from A to B. With PSD2 and the related sets of regulatory technical standards and guidelines, this is in the process of changing, since many of the actors gaining access to payment data will not primarily be interested in an actual payment transfer or in how to make it faster or safer. While some of them may focus on improving the customer experience around payments, most will be interested in generating new services and new convenience levels for customers, based on their work with payment data and other data sets. The earlier example of our smart phones – which host a proliferation of services based on different business and co-operation models completely decoupled from the business of making a phone call – we may get a glimpse at what the future could hold. Arguably, a payment account is not a smart phone, but both can be seen as special- purpose tools that have become platforms or springboards for other services. And given that payment data is something like the new frontier for data miners, we should expect the opening of payment accounts to give rise to a myriad of new or enhanced customer offerings fuelled by this powerful information. In its information paper “Understanding the business relevance of Open APIs and Open Banking for banks,”1 the EBA Open Banking Working Group already in 2016 sketched out four potential future roles that banks could play in the face of these developments affecting their wider ecosystem: integrator, producer, distributor or platform provider. Examples of banks following one or the other of these strategic options can already be found in the market today. Each of these roles comes with advantages and disadvantages and naturally requires a clear strategic analysis (for which our paper might have been one potential source or trigger) and subsequent positioning. 1 https://www.abe-eba.eu/media/azure/production/1380/ understanding-the-business-relevance-of-open-apis-and- open-banking-for-banks.pdf REPORT OF THE BOARD 2017 7

Our Open Banking Working Group did not stop there. Over the past year, it has been diving into the topic of data analytics, where it first looked into data exploration opportunities in corporate banking. Most recently, the group has been exploring the potential of leveraging real-time payment infrastructure for instant data exchange, which will be covered in a paper to be published at EBAday 2018. Practitioners from market players covering different aspects of the payments value chain participate in our working groups where they discuss and evaluate innovative topics with a potential to evolve or fundamentally change the payments business. This diverse, committed and cross-sectorial member community composed of organisations from across and beyond Europe is our greatest asset. Our open banking workstream is just one example of our efforts geared at providing thought leadership and guidance in the area of payments innovation and trends. But the Association is not only active in thought leadership on innovation. Together with our members and for their benefit, we also work on understanding the impact of regulation and support the collective development of market practices. This dual approach – thought leadership on innovative topics and guidance on practical aspects of regulatory or other 8

market initiatives – is the unique and much appreciated selling proposition of the Euro Banking Association, as confirmed by our membership survey in 2017. In line with our strengthened value proposition, the EBA covers four key activity areas; in addition to the two mentioned above, these also encompass networking & events as well as training & education. The combination of these four areas and the different fora we provide allow us to approach a topic from different perspectives: we may submit it to in-depth expert analysis in a working group context, present it to our members and industry stakeholders for wider discussion at an open forum meeting, support a problem-solving take on it by a practitioners’ panel or cover it in one of our educational trainings. And we may share the comprehensive findings gained through this multi-angle approach with other industry bodies or groups or feed them into our EBAday conference discussions for wider distribution. We believe that approaching complex and interconnected industry trends such as open banking, cyber security, artificial intelligence, cryptotechnologies or real-time payments from various perspectives and with the support and insight of our diverse community generates particular benefits. It makes a difference in a world where many people may look at the camera function of a smartphone, see it as a tool for taking snapshots and stop at that – while others may look at it from the different angles they bring to the topic, pool and discuss their findings and thus recognise its potential in other areas, such as user authentication. Involving member organisations and relevant stakeholders in thought leadership on innovation, helping our members to understand and implement regulation and supporting the development of market practices – this is our mission. With the support of our highly committed member community, our Board, my colleagues and I look forward to continuing this work of contributing to the evolution of the pan-European payments landscape. Thomas Egner REPORT OF THE BOARD 2017 9

1. REPORT ON EBA ACTIVITIES IN 2017 AND OUTLOOK FOR 2018+ 1.1 REPORT ON WORK STREAMS IN 2017 Thanks to the commitment and contribution of the EBA community in 2017, the Association was in a position to take forward and further develop work streams in its revised four key activity areas ‘Thought Leadership & Innovation’, ‘Market Practices & Regulatory Guidance’, ‘Networking & Events’ and ‘Training & Education’. The over 160 members of the Association from across Europe and beyond were able to benefit from and contribute to: Ξ Research into the impact of key change drivers on traditional business and operating models: by practitioners for practitioners, this research helps members to better understand and anticipate key market developments Ξ Propositions for collective pan-European initiatives and recommendations for members to consider in their individual positioning: these propositions aim to help the EBA membership and key stakeholders to develop collective approaches and unlock value for their own offerings or processes Ξ Platforms for industry exchange and co-operation at a pan-European level: industry fora and expert panels help to foster understanding, identify gaps, provide guidance or serve as incubators for new collective activities Ξ Pan-European networking opportunities: EBAday and other EBA events offer insights into industry developments and access to a pan-European network of 1,000+ practitioners and experts Ξ Training and education opportunities providing highly topical insights from payment practitioners and academics across Europe 12

The following chapters provide more details on the tasks and work packages that were progressed or completed in the different work streams during the period under report. describes key concepts and application areas for data-driven business. Webinars on the content of both papers were conducted to increase membership awareness on the topics. 1.1.2 CRYPTOTECHNOLOGIES WORKING GROUP In 2017, the Cryptotechnologies Working Group (CWG) continued its assessment of how international payments may benefit from cryptotechnologies. The results of this work were published in the information paper “Cryptotechnologies in International Payments” in May 2017. In the second half of the year, the CWG investigated how cryptotechnologies can help to maintain or improve data security and integrity while opening new opportunities for financial institutions. In September 2017, the CWG published a report on “Security and identity challenges in cryptotechnologies”, which covered topics related to identity and regulatory compliance and explored two use cases related to third-party consent management and sharing of KYC attributes within and between organisations, including the benefits and challenges of each use case. The report also looked ahead at how financial institutions can benefit from increased industry adoption of cryptotechnologies. THOUGHT LEADERSHIP AND INNOVATION 1.1.1 OPEN BANKING WORKING GROUP Driven by technology and customer needs and accelerated by PSD2 XS2A, Open API and Open Banking have become a strategic consideration in our industry today. As a follow-up on its 2016 activities, the Open Banking Working Group (OBWG) continued its exploration of the business implications and opportunities of Open Banking for AS-PSPs. In April 2017, the OBWG issued a thought leadership paper focussing on how Open Banking may increase customer choice and data control: “Open Banking: advancing customer centricity”. The paper explains why the notion of customer-centricity is central to the concept of Open Banking and how Open Banking offers banks the possibility to increase both private and business customer relevance in the digital era. While previous OBWG publications had focused on the bank retail business side of Open Banking, the OBWG began to examine in the second half of 2017 the corporate perspective of open banking. More specifically, the OBWG was keen to study how the increasing openness of various data sources (both financial and non-financial) held by banks and corporates alike could further drive innovation in transactional corporate banking services (within and beyond payments). In October 2017, the OBWG published an information paper on “Data Exploration Opportunities in Corporate Banking”, which REPORT OF THE BOARD 2017 13

1.1.3 LIQUIDITY MANAGEMENT WORKING GROUP In April 2017, the EBA first brought together both corporate liquidity management bankers and corporate treasurers responsible for corporate liquidity in a seminar exploring the relationship between corporate and bank cash. The insights gained in this seminar gave the impetus for establishing a working group to continue the discussion and to deliver thought leadership on liquidity management practices with a clear focus on end-of-day liquidity. The Liquidity Management Working Group (LMWG) was launched at the end of October 2017 with the mission to examine liquidity management practices with a clear focus on corporates as end users. The LMWG’s objectives are: Ξ To identify and understand client needs and trends within the corporate liquidity management ecosystem; and Ξ To understand how both regulations and digitalisation are affecting this ecosystem, from both the corporate and bank perspectives. Since its launch, the working group has branched out into three work streams: one on topics related to balances and liquidity ratios, a second one on customer needs and expectations around cash pooling and a third one on client engagement (and related technology) from a liquidity management perspective. perspective by building into its discussions a direct corporate feedback loop: each physical meeting has been accompanied by panel discussions with several corporate customers, which has helped working group members test, complement and evolve their findings. Thus, from autumn 2017 to spring 2018, a total of eight large European companies from various industries shared their daily practices with the group. OPEN FORA (FACILITATED BY THE EBA) Since their creation in March 2015 and November 2016, respectively, both the Open Forum on Instant Payments and the Open Forum on Open Banking have established themselves as accepted industry formats and a meeting opportunity for a wide variety of market participants. The EBA acts as a neutral entity facilitating the meetings of both fora by providing operational and logistical support. Both fora aim to support relevant industry developments and are moderated by well-known industry experts. In 2017, the EBA facilitated three meetings of the Open Forum on Open Banking (in March, June, and December) and one meeting of the Open Forum on Instant Payments (in May). 1.1.4 OPEN FORUM ON OPEN BANKING (FACILITATED BY THE EBA) In addition to bringing together expert views from 12 European countries, the group ensured from the start an even broader and more varied The Open Forum on Open Banking aims at fostering a practitioners’ dialogue at a pan-European level on developments and challenges with regard to Open Banking, such 14

as security, interoperability and fragmentation. In 2017, the forum focussed on PSD2-related topics as well as current developments with regard to both regulatory and operational aspects of Open Banking. The participants discussed relevant industry activities around new account information and payment initiation services as regulated by PSD2, API-related standardisation initiatives and work on pan- European directory services in the access- to-account space. The forum also received updates on regulatory initiatives by the EPC/ ERPB, the ECB and the European Commission. In 2018, the forum will broaden the discussion from the PSD2-regulated access to payment accounts to Open Banking considerations and practical implications in the area of payments and beyond, such as security aspects. 1.1.5 OPEN FORUM ON PAN-EUROPEAN INSTANT PAYMENTS (FACILITATED BY THE EBA) The Open Forum on pan-European Instant Payments gives industry practitioners and stakeholders the opportunity to raise questions, discuss current issues, and exchange information on the challenges of the industry-wide movement towards instant payments. Topics to be addressed are, amongst others, customer requirements, the role of (central) infrastructures, payment and other service providers (PSPs and SPs) as well as compliance with regulatory requirements and expectations. In May 2017, the forum met under the motto “Approaching the home stretch: How close are the banks to the finishing line?” and gave an overview on the then current status of national and pan-European instant payments initiatives. In 2018, the forum will move its focus from the supply side to the demand side of instant payments. MARKET PRACTICES AND REGULATORY GUIDANCE 1.1.7 PSD2 PRACTITIONERS’ PANEL Throughout 2017, the panel closely followed and discussed regulatory developments around PSD2 and the related regulatory technical standards and guidelines by the European Banking Authority. A major emphasis was placed on the progress made with regard to the different transposition projects across Europe. The Panel issued the first comprehensive and public overview of the EEA-wide transposition process, which was updated on a regular basis and posted on the EBA website. The panel also provided an overview of PSD2-related market initiatives published in early January 2017. REPORT OF THE BOARD 2017 15

Progress reports on highly relevant initiatives or topics, such as the ERPB payment initiation sub-group streams or the discussion of open questions around instant payment value-dating kicked off at AMI-Pay level, were given on a regular basis by panel participants or special guests. In terms of best-practice guidance and clarifications, a note was published in September 2017 on “Issuing and handling of charge codes by AS-PSPs as well as of charge requests in the inter-PSP space”, which was signed by 18 account-servicing payment service providers from 10 countries. EUROPEAN MULTI-STAKEHOLDER FORUM ON E-INVOICING (EMSFEI): The EBA is a full member of the EMSFEI. Set up by the European Commission, this forum brings together delegates from national e-invoicing fora and key stakeholders from the user side of the market. Its objective is to help pave the way for a broad-scale adoption of e-invoicing at both national and EU level. The forum creates a unique opportunity to exchange experiences and best practices across borders. Furthermore, the forum discusses issues of common interest, with the possibility to issue recommendations to the European Commission. 1.1.8 CONTRIBUTION TO THE EVOLUTION OF THE PAN-EUROPEAN PAYMENTS EUROPEAN PAYMENTS COUNCIL (EPC): ECOSYSTEM The EBA represents its members with a country-neutral perspective and a practitioner’s voice in its wider dialogue with major industry bodies and stakeholders by contributing to the shaping of the future payments landscape through its participation in the following European and global bodies and groupings: The purpose of the EPC, representing payment service providers (PSPs), is to support and promote European payments integration and development, notably the Single Euro Payments Area (SEPA). The EPC is committed to contributing to safe, reliable, efficient, convenient, economically balanced and sustainable payments, which meet the needs of payment service users and support the goals of competitiveness and innovation in an integrated European economy. The EBA is a member of the EPC and participates in several EPC working groups. GLOBAL SUPPLY CHAIN FINANCE FORUM (GSCFF): Together with the International Chamber of Commerce (ICC), the Bankers Association for Finance and Trade (BAFT), Factors Chain International (FCI) and the International Trade 16

and Forfaiting Association (ITFA), the EBA continues to promote the use of standard definitions for techniques of supply chain finance. This initiative is a step towards the much-needed standardisation of the SCF industry. EURO RETAIL PAYMENTS BOARD (ERPB) WORKING GROUP ON PAYMENT INITIATION SERVICES (PIS): The ERPB has, with the participation of relevant stakeholders, set up a working group to identify conditions for the development of an integrated, innovative and competitive market for payment initiation services in the EU. Originally tasked to deliver a report for the June 2017 ERPB meeting, the mandate of this group was prolonged in order to further work on those requirements that need a follow up, such as the standardisation of PSD2 certificates, the harmonisation of registers and the establishment of directory services, as well as the further development of remaining business requirements. The working group is requested to provide its additional report to the June 2018 ERPB meeting. 1.1.9 NETWORKING & EVENTS The EBA organises events that enable payment practitioners to broaden their understanding of the payments business and landscape and to directly interact with peers from payments- related organisations all across Europe and beyond. In 2017, the EBA continued to deepen its footprint in the organisation of payments- related events. The Association’s flagship event, the conference and exhibition EBAday, took place in Dublin, Ireland, with a 23-session program, a sold-out exhibition floor and a record number of 1,457 delegates, over 400 more than in 2016. The focus of EBAday 2017 was reflected in its title: “The Age of Discovery – Towards Full Payments Digitalisation”. The agenda provided a wide variety of insights into processing instant payments, innovation, open banking, new technologies, and customer needs. All the networking sessions received very positive feedback and were perceived as lively and informative. As in previous years, the event ran over two full days. It comprised 18 parallel panel sessions as well as a keynote, a challenge speech and REPORT OF THE BOARD 2017 17

Ξ a Global Seminar on real-time payments (this was the first educational event that the EBA organised outside of Europe. It took place in New York, USA, in the week prior to Sibos); and Ξ a Winter School on correspondent banking. three roundtable discussions. The exhibition featured 56 stands, six more than in the previous year. For the second consecutive year, the exhibition floor also included a Fintech area, in which 16 Fintech start-ups, double the number of 2016, presented their business and innovations to the delegates. The EBA lounge, which was introduced in 2015, was again part of the exhibition floor, offering a gathering place to all EBA members. In preparation of EBAday 2017, the EBA also organised eight EBAday Business Fora in five different European cities, always in cooperation with EBA Associate Members. All in all, 232 persons attended these fora. Participants invited to these breakfast sessions discuss selected topics from the EBAday conference programme with three to four keynote speakers opening the session. 1.1.10 TRAINING & EDUCATION In 2017, the EBA organised an unprecedented number of educational seminars, allowing members to come together, deepen their knowledge and get fresh perspectives on industry topics that are high up on the agenda of payment professionals: Ξ a Corporate Liquidity Management Seminar; Ξ a Summer School on Open Banking; 18

1.2 GOVERNANCE REVIEW In 2016, the EBA Board had laid the foundation for an active evaluation of the value proposition as well as of the role and composition of the EBA as a pan-European Association for payment market practitioners in a fast- changing environment. The resulting proposal for a governance review placing a key focus on the evaluation of the value proposition and a review of the membership structure was presented to and endorsed by the Annual General Meeting (AGM) in 2017. With the support of a dedicated Board Governance Task Force (BGTF), the evaluation and review exercise mandated by the AGM 2017 was prepared over the summer and carried out in Q3 2017. It involved a membership survey with follow-up interviews and a review of peer organisations covering topics such as scope of activities, membership structure, fee model and external reach. In line with the findings and conclusions from these work strands, the BGTF submitted a set of proposed actions to the EBA Board in November 2017 for the future positioning and evolution of the Euro Banking Association. These actions reflected the members’ feedback that the Association should aim for optimisation rather than transformation; thus, many of them were geared at strengthening the core components of the EBA’s value proposition as well as at boosting the EBA’s visibility and member engagement. As part of this action package, the Board endorsed an optimised mission statement as well as value proposition and agreed to a catalogue of short-term and more longer-term initiatives in line with the strengthened value proposition and the underlying membership mandate. The Board further approved a proposed new membership structure and the related membership fee schedule for submission to the AGM 2018. The proposed new membership structure and membership fee schedule as well as other key deliverables and follow-ups of the EBA’s governance-related evaluation activities in 2017 were presented and explained to the membership at country group and other meetings in Q1 and early Q2 2018. The revised articles, mirroring all necessary governance- related changes, will be submitted to the EBA Member representatives for vote at the AGM 2018. It is planned for these Articles to enter into force as of 1 January 2019. REPORT OF THE BOARD 2017 19

1.3 MARKETING AND COMMUNICATIONS As in previous years, the Euro Banking Association contributed to the programme and sponsoring of the Euro Finance Week’s payments conference in Frankfurt. The conference took place in November 2017 and was opened by EBA Chairman Wolfgang Ehrmann. High on the agenda of the event “Payments 4.0 – Between Regulation and Innovation” were instant payments and questions around related services, innovation and potential business models, as well as security. Furthermore, the Association contributed updates on its different work streams and findings to a number of conferences and events throughout the year, including customer and industry meetings held by EBA Members and Associate Members. 1.3.1 EBA WEBSITE In November 2017, the EBA launched the ‘My EBA’ customer portal, a password-protected online portal where members can access documents and information relating to their EBA membership. Since the go-live of the new portal solution, the former password- protected web pages of the EBA have been decommissioned. The new portal is available via the “Register/ Login” button on the EBA website or directly under the following URL: https://www.ebaportal.eu/association. Registered contacts can access documentation relevant to their specific relationship with the EBA, e.g. Board documentation, working group material, the EBA Alumni section etc. The portal also allows registered contacts to directly edit their profile and contact data within the portal and to keep their contact information up to date. 1.3.2 EXTERNAL CONFERENCES At Sibos 2017 in Toronto, the Association organised a community session on “The Evolving Payments Ecosystem – A Swot Analysis from a European Perspective”, which was attended by 250 participants and in which the business implications of upcoming regulatory changes (e.g. PSD2, XS2A, GDPR), the opportunities and challenges of adopting alternative models and technologies (Open APIs, Blockchain/DLT), and the relationship between financial institutions and Fintechs were discussed. The Association was also present at Sibos with a stand shared with EBA CLEARING. 20

1.4 CHANGES IN THE BOARD OF THE ASSOCIATION At the Annual General Meeting (AGM) on 19 June 2017, five Board members were appointed for a three-year term of office as follows: Ξ Nicola Coyne (Barclays Bank) Ξ Frank Hubloue (Belfius Bank SA/NV) Ξ François-Xavier Nivoit (HSBC France) Ξ Claus Richter (Nordea Bank AB) Ξ Serge Wagener (Banque et Caisse d’Epargne de l’Etat) Since the Annual General Meeting on 19 June 2017, the following changes have occurred: Ξ Further to Henrik Bergman’s resignation from his position as EBA Board member as of 18 August 2017, and further to a correspondence vote called on 29 August 2017, the Board appointed Krister Billing, Skandinaviska Enskilda Banken, as EBA Board member for the remaining term of office of Henrik Bergman, i.e. until the end of the Ordinary General Meeting deciding on the accounts of the financial year ending on 31 December 2018. Ξ Gijs Schreuder resigned from ABN AMRO Bank and from his position as EBA Board member as of 31 December 2017. REPORT OF THE BOARD 2017 21

BOARD OF THE EURO BANKING ASSOCIATION Wolfgang Ehrmann Chairman LANDESBANK HESSEN- THÜRINGEN Appointed on 06/06/2016 End of mandate: AGM 2019 Vincent Brennan Deputy Chairman BANK OF IRELAND Appointed on 06/06/2016 End of mandate: AGM 2019 REQUESTING ACCESS & Sergio Ammassari Claudio Magnaghi BNL BANCO BPM Appointed on 11/05/2015 End of mandate: AGM 2018 Resigned: 02/05/2017 Appointed on 09/05/2017 End of mandate: AGM 2018 Henrik Bergman Krister Billing SEB SEB Appointed on 06/06/2016 End of mandate: AGM 2019 Appointed on 08/09/2017 End of mandate: AGM 2019 Resigned: 18/08/2017 Nicola Coyne BARCLAYS BANK Appointed on 19/06/2017 End of mandate: AGM 2020 Gerald Hechl RAIFFEISEN BANK INTERNATIONAL Appointed on 06/06/2016 End of mandate: AGM 2019 Frank Hubloue BELFIUS BANK Appointed on 19/06/2017 End of mandate: AGM 2020 Fernando Lardiés BANCO SANTANDER Appointed on 27/12/2016 End of mandate: AGM 2018 22

REQUESTING ACCESS & Thomas Kraft BNP PARIBAS François-Xavier Nivoit HSBC FRANCE Claus Richter NORDEA Appointed on 12/06/2014 End of mandate: AGM 2017 Appointed on 19/06/2017 End of mandate: AGM 2020 Appointed on 19/06/2017 End of mandate: AGM 2020 Gijs Schreuder ABN AMRO Appointed on 12/09/2016 End of mandate: AGM 2018 Resigned: 01/01/2018 José Vicente BANCO COMERCIAL PORTUGUÊS Appointed on 11/05/2015 End of mandate: AGM 2018 Serge Wagener BANQUE ET CAISSE D'EPARGNE DE L'ETAT Appointed on 19/06/2017 End of mandate: AGM 2020 Ruth Wandhöfer CITIBANK Jürgen Wendt DZ BANK Appointed on 25/01/2016 End of mandate: AGM 2018 Appointed on 06/06/2016 End of mandate: AGM 2019 REPORT OF THE BOARD 2017 23

Accordingly, since 1 January 2018 the Board has been composed of the following persons: CHAIRMAN End of mandate Wolfgang Ehrmann Landesbank Hessen-Thüringen (Helaba) AGM 2019 DEPUTY CHAIRMAN Vincent Brennan Bank of Ireland AGM 2019 OTHER BOARD MEMBERS Banco Santander Banco BPM AGM 2018 AGM 2018 ABN AMRO Bank AGM 2018] Serge Wagener Banque et Caisse d’Epargne de l’Etat *resigned as of 1 January 2018 24 Fernando Lardiés Claudio Magnaghi [Gijs Schreuder* José Vicente Ruth Wandhöfer Krister Billing Gerald Hechl Jürgen Wendt Nicola Coyne Frank Hubloue François-Xavier Nivoit Claus Richter Banco Comercial Português Citibank Skandinaviska Enskilda Banken Raiffeisen Bank International DZ BANK Barclays Bank Belfius Bank HSBC France Nordea Bank AGM 2018 AGM 2018 AGM 2019 AGM 2019 AGM 2019 AGM 2020 AGM 2020 AGM 2020 AGM 2020 AGM 2020

1.5 CHANGES IN EBA MEMBERSHIP Since the last AGM on 19 June 2017 until 30 April 2018, five Full Members have withdrawn from the Euro Banking Association, four User Members have joined the Association, seven User Members have withdrawn, and the number of Associate Members has remained stable. The Chairman thanks those Board members whose mandate will terminate at the Annual General Meeting 2018. EBA BOARD MEETINGS In 2017, the Board met on: Ξ 13 February Ξ 4 May Ξ 1 June Ξ 10 July Ξ 21 September Ξ 23 November Ξ 15 December Since 1 January 2018, the Board has met on: Ξ 21 February Ξ 4 May Ξ 18 May REPORT OF THE BOARD 2017 25

1.6 OUTLOOK FOR 2018+ In the face of the increasing amount of changes impacting the traditional and well-known payments environment at an accelerating pace, an open and broad exchange of views, experience and industry strategy considerations between practitioners from banks, technology suppliers and other stakeholders represents a source of helpful guidance. The agenda for this exchange within and beyond the EBA community as well as for the Networking & Events activities and the educational programme the EBA is taking forward is set by the members of the Association. In line with the membership proposition for 2018, which was submitted to the EBA members on 5 March 2018 together with the budget vote for 2018 and subsequently endorsed by the EBA Full Members, the EBA is pursuing work streams related to the following: Ξ Open Banking and access to the account (XS2A): strategic impact on market players, co-operation needs and models, benefits for customers; Ξ Cryptotechnologies: evaluation of implementation scenarios in international payments and the exploration of security issues in the use of the technology; Ξ Instant payments: nurturing a practitioners’ and stakeholder exchange geared at supporting the practical roll-out of real- time payments at a pan-European level, tackling guidance and clarification needs around operational issues and fostering a wider understanding of expectations and requirements both on the demand and supply side; 26 Ξ PSD2 compliance: description of relevant implications and open questions around the implementation of PSD2 and RTS compliance requirements, including the provision of guidance if/where needed, e.g. on areas where there are touchpoints between PSD2 and GDPR; Ξ Cyber security, data science/enhanced analytics and identity management: integration of these new key topics into the existing EBA work streams; Ξ The organisation of pan-European educational and networking events; Ξ The contribution to the evolution of the pan-European payment ecosystem. THOUGHT LEADERSHIP AND INNOVATION 1.6.1 OPEN BANKING WORKING GROUP The Open Banking Working Group (OBWG) has been looking into data exploration opportunities in banking since 2017. The increasing openness of various data sources (both financial and non-financial) held by banks and both large and smaller businesses alike could act as a catalyst for a new wave in financial services innovation (within and beyond payments) and is therefore a relevant topic to track and understand. In its most recent paper “Data Exploration Opportunities in Corporate Banking – Key concepts and applications”, published in October 2017, the OBWG already started to look into the impact open banking might have on corporate and SME banking by assessing data exploration opportunities in this area.

The paper concluded that there is ample room for value creation from data analytics in the business banking domain, both in internal application areas and – more importantly – as a new source of creating service components. In 2018, the OBWG will continue its data exploration assessment with the lead question how payment and other transactional data flows in so-called ‘B2B commerce networks’ can be leveraged for product and service innovation. These B2B commerce networks involve interactions and transactions between a business and its trading partners. B2B commerce is fast becoming a landscape in which transactions between businesses of various sizes are captured and monetised by leveraging the underlying data flows using different infrastructure models. The OBWG will further explore this evolving landscape by looking into infrastructures and platforms that facilitate B2B transactions and the emerging data propositions for businesses of various sizes, ranging from SMEs such as retailers/merchants to corporates. The OBWG is issuing a publication on "B2B data sharing: Digital consent management as a driver for data opportunities" in time for EBAday. 1.6.2 EBA CRYPTOTECHNOLOGIES WORKING GROUP The Cryptotechnologies Working Group (CWG) has started an analysis on cryptotechnology and RegTech. Recently, RegTech offerings have led to real progress by helping banks and other stake- holders meet the operational challenges that result from regulatory change. The term ‘RegTech’ was coined by the Financial Conduct Authority, a financial regulatory body in the UK, in 2015 and refers to “a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities”. New laws and regulations around AML/CTF, sanctions and fraud screening, and around opening access to banking and payment systems require an agile approach. Fulfilling these requirements requires advanced data-handling capabilities, which has led banks to investigate the use of artificial intelligence and cloud computing to help with regulatory compliance. The Cryptotechnologies Working Group is working on an information paper on how cryptotechnologies can help facilitate improved compliance in an evolving regulatory land- scape. The paper will discuss specific use cases for crypto-based RegTech in Europe and is scheduled for publication in Q3 2018. REPORT OF THE BOARD 2017 27

1.6.3 EBA LIQUIDITY MANAGEMENT 1.6.4 OPEN FORUM ON OPEN BANKING WORKING GROUP (FACILITATED BY THE EBA) The objective of the Liquidity Management Working Group (LMWG) is to help the EBA membership gain a deeper understanding of key issues, trends and evolving needs in this field as a basis for their own decision-making and to share the work with a broader audience to contribute to and enhance the wider industry dialogue on these topics. As market players from both the demand and supply side across Europe are facing new challenges – evolving technical, operational and regulatory market requirements in general, and the organisation of migrating liquidity management practices into the digital era in particular – appropriate liquidity management practices are essential to this transformation for both banks and corporates alike. In the first and part of the second quarter of 2018, the working group has worked on bringing together the different topics it has been diving into in a first analysis of trends and future developments in liquidity management. This paper is scheduled for publication around EBAday. A second paper is planned for the second half of the year and will explore technology as an enabler for corporate liquidity management. At a later stage, the scope of the working group may evolve to include intraday liquidity management and the analysis of the interplay with real-time processes and transactions as well as other relevant factors, such as regulatory requirements. In 2018, the forum will further broaden the discussion from the PSD2-regulated access to payment accounts to Open Banking considerations and practical implications in the area of payments and beyond, including aspects such as security considerations. 1.6.5 OPEN FORUM ON PAN-EUROPEAN INSTANT PAYMENTS (FACILITATED BY THE EBA) The forum will closely accompany the ongoing SCT Inst ramp-up and contribute to the debate around the future evolution and positioning of the new payment instrument from different angles. On 17 April 2018, a very lively edition of the forum featuring corporate speakers from IKEA, Otto Group and STRABAG, focussed on expectations and plans on the demand side. MARKET PRACTICE AND REGULATORY GUIDANCE 1.6.6 PSD2 PRACTITIONERS’ PANEL In 2018, the panel will continue its work on monitoring transposition and implementation activities and sharing experiences across Europe with regard to PSD2 and the related regulatory technical standards and guidelines issued by the European Banking Authority. A specific focus will be put on the practical interaction between PSD2 and the General Data Protection Regulation applicable as of 25 May 2018. Where necessary and/or helpful, the panel will look into market guidance to be 28

provided with a view to fostering pan-European harmonisation in the interpretation and implementation of the requirements stipulated by these different regulatory texts. 1.6.7 SCT INST MIGRATION ROUND TABLE (SMART2) April 2018 saw the kick-off of an EBA- facilitated forum dealing with issues impacting a smooth end-to-end execution of instant payments in SEPA that might benefit from joint analysis and exchange by practitioners from account-servicing payment service providers operating in Europe. The objective of this infrastructure-agnostic group is for its participants to help identify and ideally solve such issues before instant payment usage increases in scale. The group will strive to bring clarification to instant payment migration- related issues and work towards defining industry best practices, where needed. 1.6.8 CONTRIBUTION TO THE EVOLUTION OF THE PAN-EUROPEAN PAYMENTS ECOSYSTEM As in previous years, the EBA will also continue to contribute to the delivery of Market Practices & Regulatory Guidance through its participation in industry bodies and initiatives. 1.6.9 NETWORKING & EVENTS The 2018 edition of the EBA’s flagship event EBAday will take place in Munich, Germany, under the headline “New Payment Paradigms: Preparing for Global Impact”. The event will feature an even larger exhibition floor than EBAday 2017 and again a fintech area, where start-ups can present their latest products or innovations. The Euro Banking Association will exhibit its offerings at a dedicated EBAday stand and will provide its members with a meeting place, the EBA Lounge. The EBAday Business Fora organised in the run-up to EBAday will focus on the key topics open banking and instant payments. 1.6.10 TRAINING & EDUCATION The EBA Summer and Winter Schools 2018 will address cryptotechnologies as well as open banking and open APIs, respectively. A second Global Seminar, this time on open banking, is to take place in Singapore in mid-October 2018. 1.6.11 OTHER The EBA will be present with EBA CLEARING at the Sibos exhibition in Sydney and plans to contribute a community session to the conference programme. 1.6.12 MEMBERSHIP As at 30 April 2018, the total number of members and associate members was the following: Ξ Full Members: 57 Ξ User Members: 56 Ξ Associate Members: 50 REPORT OF THE BOARD 2017 29

2. FINANCIAL SITUATION, P&L STATEMENT AS AT 31 DECEMBER 2017 The Association ended the fiscal year 2017 with a net negative result of EUR 30 K, a difference of EUR 70 K compared to 2016 where the Association recorded a positive result of EUR 41 K. This negative development in 2017 is largely attributed to lower revenues, but also to increased costs incurred by the Association in connection with the EBA governance review programme. Solid past retained earnings carried forward allowed this 2017 loss to be fully absorbed with a net retained earnings of EUR 985 K at 31 December 2017. The expenses of the Association amounted to EUR 1.8 M in 2017 compared to EUR 1.7 M in 2016, which represents a year-on-year increase of 6% of the total level of expenses while revenues increased by 2% in the same period, driven by non-membership revenues. Expenses Evolution 2.1 OVERALL EXPENSES INCURRED IN 2017 The expenses of the Association amounted to EUR 1.8 M in 2017 compared to EUR 1.7M in 2016. The increase is ascribed to an increase in the Association’s operating expenses affecting, principally, the General and Administrative expenses, including costs related to the review of the EBA governance and membership structure as well as Amortisation costs related to the launch of the new customer portal and to IT tools and interfaces in connection with both the EBA website and customer portal. 2.1.1 EBA SUPPORT ACTIVITIES Activities organised by the Association to support the membership are mainly the operation of three different working groups, two Open Fora and the PSD2 Practitioners’ Panel as well as participation at important industry events, such as Sibos. The expenses related to these activities amount to EUR 234 K in 2017. kEUR 2,000 1,500 1,000 500 0 30 2016 2017 EPC Membership Expenses for support activities One-off and others expenses Consultancies and Legal Fees External Relations Service Agreements

Membership Fee Structure kEUR 1,500 1,000 500 0 280 68 Associate members User members 275 64 1,138 Full members 1,085 2016 2017 2.1.2 GENERAL AND ADMINISTRATIVE EXPENSES This item contains the HR administrative and support expenses, the rent of premises and office space, generic expenses for external relations, such as the Association’s engagement in industry bodies and initiatives fostering the development of the pan-European payments ecosystem, consultancies and any legal fees that are not related to any specific support activity of the Association. The level of these expenses increased by 10% on a year-on-year basis, from EUR 1.4 M in 2016 to EUR 1.5 M in 2017. This is mainly explained by the full-year headcount in 2017 and an increase of 0.8 FTE allocated to the Association to cover increased activity in Communications. The amount due on the basis of the Service Agreement for Premises and Office Space with EBA CLEARING has decreased from EUR 107 K to EUR 55 K compared to 2016 further to adjustments to such service agreement. 2.2 REVENUES IN 2017 The total revenues of the Association amounted to EUR 1.8 M in 2017, which represents a 2% increase from 2016. This positive evolution was caused by an increase in non-membership revenues. 2.2.1 MEMBERSHIP REVENUES Membership revenues saw a 4% decrease compared to 2016. At the same time, the Association benefitted in 2017 from one-off fees related to the entrance of new user members and associate members for a total amount of EUR 37 K. 2.2.2 NON-MEMBERSHIP REVENUES This category includes the self-sustained activities of the Association, i.e. EBAday and the educational activities organised by the Association for its members. These activities generated a positive margin providing the Association with extra income in addition to the recurring membership fees. REPORT OF THE BOARD 2017 31

Balance sheet evolution kEUR 1,500 1,000 500 0 2016 2017 2017 2016 ASSETS LIABILITIES Fixed assets Receivables & pre-payments Cash and short-term deposit Capital & reserves Provisions & debts The positive margin generated by these events, EUR 367 K, is higher by EUR 97 K compared to 2016 standing at EUR 270 K, underlining the attractiveness of these activities for the members of the Association as well as external audiences. 2.3 INCOME TAX AND RESULTS FOR 2017 As a consequence of this year’s negative result, income taxes are EUR 0 and the net result after tax stands at EUR -30 K. 2.3.1 BALANCE SHEET AND CASH POSITION The balance sheet of the Association showed a stable patrimonial value of EUR 1.4 M for 2017, constituted mainly of current assets at EUR 1.3 M, including a cash position of EUR 1.2 M. On the liabilities side, the equity position of the Association is at the level of EUR 985 K; the remaining position of EUR 453 K is mainly composed of payables. 2.4 EBA BUDGET FOR 2018 For the year 2018, the budget provides the Association with a conservative revenue stream and reasonable expenditure estimates posting a deficit for the 2018 financial year of EUR 105 K. It is expected that the 2018 income will decrease by 2% to EUR 1.7 M and expenses will rise by 2% compared to the 2017 actuals at EUR 1.8 M. The 2018 budget is based on the following assumptions: 2.4.1 EBA OPERATING CHARGES The general and administrative expenses are expected to increase by EUR 70 K in 2018. The main driver of this increase, the External Relations item composed of Communication and Meetings & Travels, includes initiatives that will be launched in 2018 as a necessary part of the future EBA positioning programme to promote market recognition and establishing 32

Profit & Loss evolution kEUR 2,000 1,500 1,000 500 0 Net result Expenses Income 2014 2015 2016 2017 2018 Budget a stronger footprint within the individual EBA communities. Expenses resulting from the service agreement for administrative and support services and for premises and office space are totalling EUR 1.2 M, which corresponds to the same level as the 2017 actuals. 2.4.2 EBA ACTIVITIES AND PROJECTS This budget item covers the different activity streams that will be carried out by the Association in 2018, namely Sibos, working groups as well as industry and fora activities. These budget lines will cover all expenses relating to these events. The estimated amount of the 2018 activities is expected to reach EUR 240 K. The expenditure foreseen for 2018 covers the following activities: Ξ Sibos: costs for participation Ξ Working group activities: the main costs are related to the printing and distribution of working group documents, specific consultancy services to support expert group meetings, to help develop publications and to facilitate workshops and materials; Ξ Fora activities and participation in other industry initiatives: the aim of these activities is to discuss the key issues that today raise the interest of EBA Members and stakeholders in the payments industry. The expenses are mainly venue-related and other logistics costs. Membership fees for participation in other industry bodies are also covered under this item. Ξ Publications resulting from activities in the Market Practices and Regulatory Guidance value stream. 2.5 PROJECTED REVENUES FOR 2018 The 2018 budget revenues foresee an amount of EUR 1.7 M, 2% less than the 2017 actuals. This mainly results from a decrease in the non- membership revenues, cautiously estimated at approximately EUR 325 K. REPORT OF THE BOARD 2017 33

Membership fees structure outlook kEUR 2,000 1,500 1,000 500 0 Associate members User members Full members 2012 2013 2014 2015 2016 2017 2018 Budget 2.5.1 MEMBERSHIP REVENUES 2.5.2 NON-MEMBERSHIP REVENUES The net revenues related to the organisation of the EBA educational activities and EBAday are cautiously estimated to decrease by EUR 42 K compared to 2017 actuals; the net revenues generated by these events are conservatively estimated at EUR 325 K. In 2018, it is expected that the Association will collect the same level of membership fees as in 2017, where they amounted to EUR 1.4 M. This expected level of membership revenues is due to a consolidation-related reduction in the number of full members and user members; this loss of members is expected to be compensated by the admission of additional associate members and the increase of the associate membership fees. Projected revenues kEUR 2,000 1,500 1,000 500 0 34 Non-membership Revenues Membership Revenues 2014 2015 2016 2017 2018 Budget

EBA FINANCIALS 2017-2018 P&L STATEMENT – REVENUES Amounts in kEUR 2017 Budget Actuals vs. Budget 2018 Budget vs. 2017 Actuals 2017 2018 Membership 1,417 1,424 0.5% 1,430 0% *2017 Budget – 2017 Actuals – 2018 Budget Membership Fees 1,394 1,387 -0.5% 1,421 Full members @ 17,500 € 61 – 62 – 57* User members @ 1,000 € 61 – 62 – 59* Associate members @ 5,000 € 53 – 48 – 51* Associate members @ 7,000 € for 2018 1,068 1,085 61 62 2% 2% 998 59 265 240 -9% 364 52% 2% -8% -5% Entrance Fees 23 37 61% Full members @ 1,000 € 1 – 0 – 0* User members @ 1,000 € 2 – 2 – 0* Associate members 5,000 € 4 – 7 – 2* 1 2 0 2 -100% - 20 35 75% 9 - - 9 -76% - -100% -74% Non-Membership Educational activities (Summer & Winter School) EBAday (EBAday Business Fora + EBAday) 250 50 200 367 47% 325 -11% 95 89% 50 -47% 272 36% 275 1% Total Revenues 1,667 1,791 7% 1,755 -2% REPORT OF THE BOARD 2017 35

P&L STATEMENT – CHARGES Amounts in kEUR 2017 Budget Actuals vs. Budget Budget vs. 2017 Actuals 2017 2018 1 – General and administratives 1,523 1,509 -1% 1,578 5% expenses HR, administrative and support services Premises and office space External relations Promotions Meetings & travel Consultancies and legal fees Legal fees and other consultancies Fees for financial auditors EBA governance and membership review Financial charges & revenues (Net) (*) Other expenses 2 – Expenses for support activities Sibos Working groups Industry & open fora activities Other events Membership (EPC) Amortisation charges 1,171 1,193 2% 1,171 -2% 55 160 60 100 70 60 10 50 2 15 280 115 105 50 10 28 0 55 136 59 77 71 63 8 43 5 7 234 73 126 36 - 21 57 0 55 -15% -2% -23% 1% 6% -25% -15% 200 100 100 70 60 10 70 0% 47% 70% 29% -1% -6% 33% 65% 137% 2.4 -49% -56% 10.4 58% -16% -37% 20% -29% -100% -26% - 240 50 150 35 5 21 20 2% -31% 19% -2% - - -65% Total Charges 1,831 1,821 -1% 1,859 2% 36

APPENDIX 2 LIST OF EBA FULL MEMBERS (as of 30 April 2018) Ξ ABN AMRO BANK Ξ ALLIED IRISH BANKS Ξ ALPHA BANK Ξ BANCA MONTE DEI PASCHI DI SIENA Ξ BANCA NAZIONALE DEL LAVORO Ξ BANCO BILBAO VIZCAYA ARGENTARIA Ξ BANCO BPM SPA Ξ BANCO COMERCIAL PORTUGUES Ξ BANCO DE SABADELL SA Ξ BANCO SANTANDER Ξ BANK OF AMERICA Ξ BANK OF CHINA Ξ BANK OF IRELAND Ξ BANQUE ET CAISSE D’EPARGNE DE L’ETAT, LUXEMBOURG Ξ BANQUE FEDERATIVE DU CREDIT MUTUEL Ξ BANQUE INTERNATIONALE A LUXEMBOURG SA Ξ BARCLAYS BANK Ξ BELFIUS BANK SA/NV Ξ BNP PARIBAS Ξ BNP PARIBAS FORTIS Ξ BPCE Ξ BRED BANQUE POPULAIRE Ξ CAIXABANK SA Ξ CITIBANK EUROPE PLC Ξ COMMERZBANK AG Ξ CREDIT AGRICOLE Ξ DANSKE BANK Ξ DEUTSCHE BANK AG Ξ DEUTSCHE POSTBANK AG Ξ DNB BANK ASA Ξ DZ BANK AG Ξ ERSTE GROUP BANK AG Ξ EUROBANK ERGASIAS SA Ξ HBSC BANK PLC Ξ HSBC FRANCE Ξ ING BANK NV Ξ INTESA SANPAOLO SPA Ξ JPMORGAN CHASE BANK NA Ξ KBC BANK NV Ξ LANDESBANK HESSEN-THÜRINGEN (HELABA) Ξ LLOYDS BANK PLC Ξ MUFG BANK LTD Ξ NATIONAL BANK OF GREECE SA Ξ NATIONAL WESTMINSTER BANK Ξ NORDEA BANK AB (PUBL) FINNISH BRANCH Ξ OP CORPORATE BANK PLC Ξ OTP BANK PLC Ξ RABOBANK NEDERLAND Ξ RAIFFEISEN BANK INTERNATIONAL AG Ξ SKANDINAVISKA ENSKILDA BANKEN Ξ SOCIETE GENERALE Ξ STANDARD CHARTERED BANK Ξ SVENSKA HANDELSBANKEN Ξ SWEDBANK Ξ UBS AG Ξ UNICREDIT SPA Ξ WELLS FARGO BANK NA REPORT OF THE BOARD 2017 39

LIST OF EBA USER MEMBERS (as of 30 April 2018) Ξ ABANCA CORPORACION BANCARIA S.A. Ξ AKTIA BANK PLC Ξ ALLGEMEINE SPARKASSE OBERÖSTERREICH BANK AG Ξ BANCA DEL FUCINO Ξ BANCA DI IMOLA SPA Ξ BANCA POPOLARE DEL LAZIO Ξ BANCA POPOLARE DI SONDRIO Ξ BANCA SELLA SPA Ξ BANCO BAI EUROPA Ξ BANCO COOPERATIVO ESPANOL SA Ξ BANK FÜR TIROL UND VORARLBERG AG Ξ BANK GPB INTERNATIONAL SA Ξ BANK OF ALAND PLC Ξ BANKA SLOVENIJE Ξ BANKINTER SA Ξ BANQUE MICHEL INCHAUSPE (BAMI) Ξ BANQUE PALATINE Ξ BKS BANK AG Ξ BPER BANCA SPA Ξ BPOST SA DE DROIT PUBLIC Ξ CAIXA CENTRAL DE CREDITO AGRICOLA MUTUO Ξ CAIXA GERAL DE DEPOSITOS Ξ CAJA LABORAL POPULAR COOP. DE CREDITO Ξ CASSA DI RISPARMIO DI CESENA SPA Ξ CASSA DI RISPARMIO DI FERMO SPA Ξ CASSA DI RISPARMIO DI RAVENNA SPA Ξ CECABANK Ξ CREDIT MUTUEL ARKEA Ξ CREDITO EMILIANO SPA 40 Ξ CREDITO VALTELLINESE Ξ DE NEDERLANDSCHE BANK Ξ DEUTSCHE BUNDESBANK Ξ ELAVON FINANCIAL SERVICES LIMITED Ξ EMIRATES NBD PJSC Ξ HELLENIC BANK PUBLIC COMPANY LTD Ξ ICCREA BANCA Ξ JOH. BERENBERG, GOSSLER UND CO. KG Ξ KOOKMIN BANK INTERNATIONAL LTD. Ξ KUTXABANK, SA Ξ LA BANQUE POSTALE Ξ LANDESBANK BADEN-WÜRTTEMBERG Ξ LANDESBANK BERLIN AG Ξ MASHREQ BANK PSC Ξ NEXI SPA Ξ OBERBANK AG Ξ OESTERREICHISCHE NATIONALBANK Ξ RAIFFEISENLANDESBANK OBERÖSTERREICH AG Ξ RAIFFEISEN-LANDESBANK TIROL AG Ξ RAIFFEISEN LANDESBANK SÜDTIROL / CASSA CENTRALE RAIFFEISEN DELL’ALTO ADIGE Ξ S-BANK LTD Ξ SECB SWISS EURO CLEARING BANK GmbH Ξ SPAR NORD BANK Ξ SPAREKASSEN SJAELLAND Ξ SYDBANK AS Ξ THE BANK OF NEW YORK MELLON Ξ UBI BANCA

Ξ MISYS INTL. BANKING SYSTEMS LTD Ξ MONTRAN CORPORATION Ξ ORACLE CORPORATION Ξ POSTFINANCE AG Ξ PPI AG INFORMATIONSTECHNOLOGIE Ξ REVAL AUSTRIA GmbH Ξ SAMLINK LTD Ξ SAP SE Ξ SIA SPA Ξ SIX PAYNET AG Ξ SOFTWARE INTEGRATORS LTD Ξ STET Ξ SWIFT Ξ TAS SPA Ξ TATA CONSULTANCY SERVICES Ξ TEMENOS UK LTD Ξ TIETO Ξ VAN DEN BERG AG Ξ VOLANTE TECHNOLOGIES, INC Ξ WORLDCORE Ξ WORDLINE SA Ξ XMLDATION OY LIST OF EBA ASSOCIATE MEMBERS (as of 30 April 2018) Ξ ACCENTURE GmbH Ξ ACCUITY Ξ ACE SOFTWARE SOLUTIONS (PELICAN) Ξ ACI WORLDWIDE (EMEA) LTD Ξ AURIGA SPA Ξ AXWAY SOFTWARE Ξ BEARINGPOINT GmbH Ξ BOTTOMLINE TECHNOLOGIES SARL Ξ CGI Ξ CLEAR2PAY Ξ COCONET AG Ξ COMMERCIAL BANKING APPLICATIONS AS (CBA) Ξ CSC DEUTSCHLAND GmbH Ξ DION GLOBAL SOLUTIONS GmbH Ξ DOVETAIL SYSTEMS LTD Ξ EFIS AG Ξ EQUENSWORLDLINE SE Ξ ERNST & YOUNG LLP Ξ EVRY Ξ FIDELITY NATIONAL INFORMATION SERVICES Ξ FINANCE FINLAND, FFI Ξ FINASTRA LTD Ξ IBM DEUTSCHLAND GmbH Ξ ICON SOLUTIONS LIMITED Ξ INNOPAY B.V. Ξ INTERCOPE INTERNATIONAL COMMUNICATION GmbH Ξ LIPIS ADVISORS GmbH Ξ MICROSOFT UK REPORT OF THE BOARD 2017 41

IMPRINT Euro Banking Association 40 rue de Courcelles F-75008 Paris GRAPHIC DESIGN Bosse und Meinhard, Bonn PHOTOGRAPHS Johannes Haas Fotografie, Rösrath CONTACT association@abe-eba.eu The EBA-related statistics used for the cover illustration refer to 2017; all figures used for illustrations inside the report cover the period from January 2017 to May 2018, unless indicated otherwise.