REG - Alpha Bank A.E. - 3rd Quarter Results <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 1

Alpha Services and Holdings SAAnnouncement

30/11/2016 16:55

RNS Number : 6020Q
Alpha Bank A.E.
30 November 2016
INTERIM CONSOLIDATED FINANCIAL STATEMENTS 
AS AT 30.9.2016
(In accordance with International Accounting Standard 34)
Athens,
30 November 2016


TABLE OF CONTENTS
Interim Consolidated Financial Statements as at 30.9.2016
(In accordance with IAS 34)
 Interim Consolidated Income Statement...................................................................... 3
 Interim Consolidated Balance Sheet........................................................................... 4
 Interim Consolidated Statement of Comprehensive Income........................................... 5
 Interim Consolidated Statement of Changes in Equity...................................................6
 Interim Consolidated Statement of Cash Flows............................................................. 8
 Notes to the Interim Consolidated Financial Statements
 General Information.................................................................................................. 9
 Accounting policies applied
 1.1 Basis of presentation........................................................................................ 11
 1.2 Estimates, decision making criteria and significant sources of uncertainty................. 11
 Income Statement
 2. Gains less losses on financial transactions............................................................ 14
 3. General administrative expenses.......................................................................... 15
 4. Impairment losses and provisions to cover credit risk............................................... 16
 5. Income tax....................................................................................................... 16
 6. Earnings/(losses) per share................................................................................. 20
 Assets
 7. Loans and advances to customers........................................................................ 22
 8. Investment and held for trading securities.............................................................. 24
 9. Investment property.......................................................................................... 25
 10. Property, plant and equipment............................................................................. 26
 11. Goodwill and other intangible assets..................................................................... 27
 Liabilities
 12. Due to banks.................................................................................................... 28
 13. Debt securities in issue and other borrowed funds................................................... 28
 14. Employee defined benefit obligations.................................................................... 30
 15. Provisions........................................................................................................ 30
 Equity
 16. Share capital and Retained earnings..................................................................... 32
 17. Hybrid securities............................................................................................... 32
 Additional Information
 18. Contingent liabilities and commitments................................................................. 33
 19. Group Consolidated Companies............................................................................ 38
 20. Operating segment............................................................................................ 41
 21. Exposure in credit risk from debt issued by the peripheral Eurozone countries............. 43
 22. Disclosures relevant to the fair value of financial instruments.................................... 44
 23. Capital adequacy............................................................................................... 50
 24. Related-party transactions.................................................................................. 51
 25. Current assets held for sale and discontinued operations ......................................... 52
 26. Corporate events .............................................................................................. 57
 27. Restatement of financial statements .................................................................... 58
 28. Events after the balance sheet date.................................................................................................. 63



Interim Consolidated Income Statement
(Amounts in thousand of Euro)


From 1 January to
From 1 July to

Note
30.9.2016
30.9.2015*
30.9.2016
30.9.2015*
Interest and similar income

2,042,445 
2,282,870 
659,494 
758,431 
Interest expense and similar charges

(588,718)
(837,672)
(172,074)
(270,127)
Net interest income

1,453,727
1,445,198
487,420
488,304






Fee and commission income

283,107
284,696
100,660
90,185
Commission expense

(41,694)
(54,021)
(18,017)
(20,674)
Net fee and commission income

241,413
230,675
82,643
69,511






Dividend income

1,153
888
33
343
Gains less losses on financial transactions
2
69,395
45,015
9,357
9,053
Other income

44,053
44,909
16,778
14,333


114,601
90,812
26,168
23,729
Total income

1,809,741
1,766,685
596,231
581,544
Staff costs

(387,192)
(395,200)
(128,711)
(131,729)
Cost for voluntary separation scheme 
15
(31,560)

(80)

General administrative expenses
3
(380,837)
(394,712)
(133,748)
(157,383)
Depreciation and amortization

(74,298)
(77,899)
(24,803)
(26,362)
Other expenses

(17,402)
(3,615)
(1,128)
(1,407)
Total expenses

(891,289)
(871,426)
(288,470)
(316,881)
Impairment losses and provisions to cover credit risk
4
(861,952)
(2,357,333)
(257,124)
(258,491)
Share of profit/(loss) of associates and joint ventures

(2,773)
(9,022)
(806)
(5,035)
Profit/(loss) before income tax

53,727 
(1,471,096)
49,831 
1,137 
Income tax 
5
(32,562)
723,198 
(8,115)
413,840 
Profit/(loss) after income tax, from continuing operations

21,165 
(747,898)
41,716 
414,977 
Profit /(loss) after income tax from discontinued operations
25
1,047 
(90,486)
(560)
(1,278)
Profit/(loss) after income tax

22,212 
(838,384)
41,156 
413,699 
Profit/(loss) attributable to:





Equity owners of the Bank





- from continuing operations

20,975 
(748,150)
41,625 
414,892 
- from discontinued operations

1,047 
(90,486)
(560)
(1,278)


22,022 
(838,636)
41,065 
413,614 
Non-controlling interests





- from continuing operations

190
252
91 
85
Earnings/(losses) per share:





Basic and diluted ( per share)
6
0.01 
(3.28)
0.03 
1.62 
Basic and diluted from continuing operations
( per share)
6
0.01 
(2.93)
0.03 
1.62 
Basic and diluted from discontinued operations
( per share)
6
0.00 
(0.35)
(0.00)
(0.01)
* The figures of the Interim Consolidated Income Statement of the comparative periods have been restated due to modification of the presentation of figures related to the loyalty Bonus card program, the finalization of the Bulgaria Branch transfer terms and the presentation of Alpha Bank A.D. Skopje as a discontinued operation (notes 25 and 27).
The attached notes (pages 9-63) form an integral part of these interim consolidated financial statements


Interim Consolidated Balance Sheet
(Amounts in thousand of Euro)

Note 
30.9.2016
31.12.2015*
ASSETS



Cash and cash balances with Central Banks

1,460,080
1,730,327
Due from banks

2,083,209
1,976,273
Trading securities
8
4,036
2,779
Derivative financial assets

789,045
793,015
Loans and advances to customers
7
44,870,376
46,186,116
Investment securities



- Available for sale
8
5,465,593
5,794,484
- Held to maturity
8
44,801
79,709
- Loans and receivables
8
3,371,258
4,289,482
Investments in associates and joint ventures

13,446
45,771
Investment property
9
636,761
623,662
Property, plant and equipment
10
820,649
860,901
Goodwill and other intangible assets
11
371,232
345,151
Deferred tax assets

4,433,206
4,398,176
Other assets

1,516,748
1,508,633


65,880,440
68,634,479
Assets held for sale
25
280,618 
663,063
Total Assets

66,161,058
69,297,542
LIABILITIES



Due to banks
12
21,805,776
25,115,363
Derivative financial liabilities

1,622,752
1,550,529
Due to customers (including debt securities in issue)

31,969,757
31,434,266
Debt securities in issue and other borrowed funds
13
299,724
400,729
Liabilities for current income tax and other taxes

26,990
38,192
Deferred tax liabilities

22,365
20,852
Employee defined benefit obligations
14
83,582
108,550
Other liabilities

1,027,499
910,623
Provisions
15
347,065
298,458


57,205,510
59,877,562
Liabilities related to assets held for sale
25
9,629
366,781
Total Liabilities

57,215,139
60,244,343
EQUITY



Equity attributable to equity owners of the Bank



Share capital
16
461,064
461,064
Share premium

10,790,870
10,790,870
Reserves

172,644 
300,086
Amounts recognized directly in equity for held for sale items

(122)
8,834 
Retained earnings
16
(2,517,850)
(2,546,885)


8,906,606
9,013,969
Non-controlling interests

24,181
23,998
Hybrid securities
17
15,132
15,232
Total Equity

8,945,919
9,053,199
Total Liabilities and Equity

66,161,058
69,297,542
* The figures of the Consolidated Balance Sheet of the comparative period have been restated due to the completion of the valuation of net assets of acquired subsidiary company (note 27).
The attached notes (pages 9-63) form an integral part of these interim consolidated financial statements


Interim Consolidated Comprehensive Income
(Amounts in thousand of Euro)


From 1 January to
From 1 July to

Note
30.9.2016
30.9.2015*
30.9.2016
30.9.2015*
Profit/(Loss), after income tax, recognized in the income statement

22,212 
(838,384)
41,156 
413,699 
Other comprehensive income recognized directly in equity:





Amounts that may be reclassified to the income statement





Net change in available for sale securities' reserve

(40,551)
60,619 
(19,713)
388,738 
Net change in cash flow hedge reserve

(141,535)
39,758 
(13,840)
(23,987)
Exchange differences on translating and hedging the net investment in foreign operations

(3,568)
4,037
(1,667)
3,441 
Change in the share of other comprehensive income of associates and joint ventures


101 


Income tax
5
56,768 
(25,410)
18,133 
(87,973)
Amounts that may be reclassified to the income statement from continuing operations

(128,886)
79,105 
(17,087)
280,219 
Amounts that may be reclassified to the income statement from discontinued operations

(40)
3 

(36)
Amounts that may not be reclassified to the income statement





Effect due to the change of the income tax rate in actuarial gains/(losses) of employee defined benefit obligations


2,175 

2,175 


- 
2,175 
- 
2,175 
Total of other comprehensive income recognized directly in equity, after income tax
5
(128,926)
81,283 
(17,087)
282,358 
Total comprehensive income for the period, after income tax

(106,714)
(757,101)
24,069 
696,057 
Total comprehensive income for the period attributable to:





Equity owners of the Bank





- from continuing operations

(107,904)
(666,900)
24,507 
697,307 
- from discontinued operations

1,007 
(90,483)
(560)
(1,314)


(106,897)
(757,383)
23,947 
695,993 
Non controlling interests





- from continuing operations

183 
282 
122 
64 
* The figures of the Interim Consolidated Statement of Comprehensive Income of the comparative periods have been restated due to the finalization of the Bulgaria Branch transfer terms, the presentation of Alpha Bank A.D. Skopje as a discontinued operation and the completion of the valuation of net assets of acquired subsidiary company (notes 25 and 27).
The attached notes (pages 9-63) form an integral part of these interim consolidated financial statements


Interim Consolidated Statements of Changes in Equity
(Amounts in thousand of Euro)

 Note
Share capital
Share premium
Reserves
Retained earnings
Total
Non controlling interests
Hybrid securities
Total Equity
Balance 1.1.2015

3,830,718 
4,858,216 
105,687 
(1,142,801)
7,651,820 
23,266 
31,464 
7,706,550 
Changes for the period
1.1 - 30.9.2015









Profit/(loss) for the period, after income tax




(838,636)
(838,636)
252 

(838,384)
Other comprehensive income recognized directly in equity, after income tax 



79,078 
2,175 
81,253 
30 

81,283 
Total comprehensive income for the period, after income tax



79,078 
(836,461)
(757,383)
282
-
(757,101)
Effect due to change to the income tax rate for the share capital increase expenses




6,261 
6,261 


6,261 
Purchases/sales and change of ownership interests in subsidiaries




(388)
(388)
427

39 
(Purchases), (redemptions)/sales of hybrid securities, after income tax




740 
740 

(1,729)
(989)
Appropriation of reserves



2,511 
(2,511)
- 


- 
Balance 30.9.2015

3,830,718 
4,858,216 
187,276 
(1,975,160)
6,901,050 
23,975 
29,735 
6,954,760 
Changes for the period
1.10 - 31.12.2015









Profit/(loss) for the period, after income tax




(533,078)
(533,078)
8 

(533,070)
Other comprehensive income recognized directly in equity, after income tax 



121,635 
870 
122,505 
(15)

122,490 
Total comprehensive income for the period, after income tax



121,635 
(532,208)
(410,573)
(7)
- 
(410,580)
Decrease of ordinary shares nominal value

(3,754,104)
3,754,104 


- 


- 
Share capital increase paid in cash

232,825 
1,319,344 


1,552,169 


1,552,169 
Share capital increase through capitalization of financial receivables

151,625 
859,206 


1,010,831 


1,010,831 
Share capital increase expenses, after income tax




(43,506)
(43,506)


(43,506)
Purchases/sales and change of ownership interests in subsidiaries




(69)
(69)
30

(39)
(Purchases), (redemptions)/sales of hybrid securities, after income tax




4,067 
4,067 

(14,503)
(10,436)
Appropriation of reserves



9 
(9)
- 


- 
Balance 31.12.2015

461,064 
10,790,870 
308,920 
(2,546,885)
9,013,969 
23,998 
15,232 
9,053,199 


(Amounts in thousand of Euro)

 Note
Share capital
Share premium
Reserves
Retained earnings
Total
Non controlling interests
Hybrid securities
Total Equity
Balance 1.1.2016 

461,064 
10,790,870 
308,920 
(2,546,885)
9,013,969 
23,998 
15,232 
9,053,199 
Changes for the period
1.1-30.9.2016









Profit for the period, after income tax




22,022 
22,022 
190 

22,212 
Other comprehensive income recognized directly in equity, after income tax



(128,919)

(128,919)
(7)

(128,926)
Total comprehensive income for the period, after income tax



(128,919)
22,022 
(106,897)
183 
- 
(106,714)
Share capital increase expenses, after income tax




(689)
(689)


(689)
Purchases/sales and change of ownership interests in subsidiaries



(8,794)
8,794 
- 


- 
(Purchases), (redemptions)/sales of hybrid securities, after income tax




60 
60 

(100)
(40)
Appropriation of reserves



1.315
(1,315)
- 


- 
Other




163 
163 


163 
Balance 30.9.2016 

461,064 
10,790,870 
172,522 
(2,517,850)
8,906,606 
24,181 
15,132 
8,945,919 
* The figures of the Consolidated Statement of Changes in Equity of the comparative period have been restated due to the completion of the valuation of net assets of acquired subsidiary company (note 27).
The attached notes (pages 9-63) form an integral part of these interim consolidated financial statements


Interim Consolidated Statement of Cash Flows
(Amounts in thousand of Euro)


From 1 January to

Note
30.9.2016
30.9.2015*
Cash flows from continuing operating activities



Profit/(loss) before income tax

53,727 
(1,471,096)
Adjustments for gain/(losses) before income tax for:



Depreciation/Impairment of fixed assets
9,10
40,830 
43,932 
Amortization/Impairment of intangible assets
11
33,468 
33,967 
Impairment losses from loans, provisions and staff leaving indemnity

915,244 
2,407,964 
(Gains)/losses from investing activities

(78,209)
19,853 
(Gains)/losses from financing activities

42,183 
49,611 
Share of (profit)/loss of associates and joint ventures

2,773 
9,022 


1,010,016 
1,093,253 
Net (increase)/decrease in assets relating to continuing operating activities:



Due from banks

(159,589)
1,245,151 
Trading securities and derivative financial assets

2,712 
253,590 
Loans and advances to customers

581,158 
(293,706)
Other assets

54,981 
(32,079)
Net increase /(decrease) in liabilities relating to continuing operating activities:



Due to banks

(3,309,587)
10,261,958 
Derivative financial liabilities

(69,312)
(234,082)
Due to customers

532,587 
(12,291,979)
Other liabilities

116,874 
99,694 
Net cash flows from continuing operating activities before taxes

(1,240,160)
101,800 
Income taxes and other taxes paid

(19,468)
(46,347)
Net cash flows from continuing operating activities

(1,259,628)
55,453 
Net cash flows from discontinued operating activities

(21,270)
1,003 
Cash flows from continuing investing activities



Investments in associates and joint ventures

(18,522)
(12,138)
Acquisitions during the period


9,151 
Amounts received from disposal of subsidiary


15,392 
Dividends received

1,153 
903 
Acquisitions of fixed and intangible assets

(129,106)
(68,455)
Disposals of fixed and intangible assets

28,619 
10,928 
Net (increase)/decrease in investement securities

1,205,972 
26,845 
Net cash flows from continuing investing activities

1,088,116 
(17,374)
Net cash flows from discontinued investing activities

(24,390)
8,096 
Cash flows from continuing financing activities



Receipts of debt securities in issue and other borrowed funds

858 

Repayments of debt securities in issue and other borrowed funds

(103,141)
(111,077)
(Purchases)/sales of hybrid securities

(15)
(693)
Share capital increase expenses

(970)

Net cash flows from continuing financing activities

(103,268)
(111,770)
Effect of exchange rate differences on cash and cash equivalents

(18,411)
8,865 
Net increase/(decrease) in cash flows from continuing activities

(293,191)
(64,826)
Net increase/(decrease) in cash flows from discontinued activities

(45,660)
9,099 
Cash and cash equivalents at the beginning of the period

1,328,133 
1,194,244
Cash and cash equivalents at the end of the period

989,282 
1,138,517
* The figures of the Interim Consolidated Statement of Cash Flows of the comparative period have been restated due to the finalization of the Bulgaria Branch transfer terms and the presentation of Alpha Bank A.D. Skopje as a discontinued operation (notes 25 and 27).
The attached notes (pages 9-63) form an integral part of these interim consolidated financial statements
Notes to the Interim Consolidated Financial Statements
GENERAL INFORMATION

The Alpha Bank Group, which includes companies in Greece and abroad, offers the following services: corporate and retail banking, financial services, investment banking and brokerage services, insurance services, real estate management, hotel services.
The parent company of the Group is Alpha Bank A.E. which operates under the brand name Alpha Bank. The Bank's resistered office is 40 Stadiou Street, Athens and is listed in the General Commercial Register with registration number 223701000 (former societe anonyme registration number 6066/06/B/86/05). The Bank's duration is until 2100 but may be extended by the General Meeting of Shareholders.
In accordance with article 4 of the Articles of Incorporation, the Bank's objective is to engage, on its own account or on behalf of third parties, in Greece and abroad, independently or collectively, including joint ventures with third parties, in any and all (main and secondary) operations, activities, transactions and services allowed to credit institutions, in conformity with whatever rules and regulations (domestic, community, foreign) may be in force each time. In order to serve this objective, the Bank may perform any kind of action, operation or transaction which, directly or indirectly, is pertinent, complementary or auxiliary to the purposes mentioned above.
The tenure of the Board of Directors which was elected by the Ordinary General Meeting of Shareholders on 27.6.2014 expires in 2018.
The Board of Directors as at 30.9.2016 consists of:

CHAIRMAN (Non Executive Member)
Vasileios Th. Rapanos
VICE CHAIRMAN
(Non Executive Independent Member)
Paul A.Apostolides **/****
EXECUTIVE MEMBERS
MANAGING DIRECTOR
Demetrios P.Mantzounis
EXECUTIVE DIRECTORS AND GENERAL MANAGERS
Spyros N.Filaretos (COO)
Artemios Ch.Theodoridis
George C.Aronis
NON-EXECUTIVE MEMBERS
Efthymios .Vidalis 
Richard R.Gildea **/*** 
NON-EXECUTIVE INDEPENDENT MEMBERS
Evangelos J.Kaloussis */*** 
Ioannis K.Lyras */**
Ibrahim S.Dabdoub **/****
Shahzad A.Shahbaz ***/****
Jan A.Vanhevel */***
NON-EXECUTIVE MEMBER
(in accordance with the requirements of Law 3723/2008)
Marica S.Ioannou-Frangakis
NON-EXECUTIVE MEMBER
(in accordance with the requirements of Law 3864/2010)
Panagiota S.Iplixian */**/***/****
SECRETARY
George P.Triantafyllides

*  Member of the Audit Committee
** Member of the Remuneration Committee
*** Member of Risk Management Committee
**** Member of Corporate Governance and Nominations Committee

At the meeting of the Board of Directors of the Bank held on 29.9.2016, the Non-Executive Independent Members Ioannis K. Lyras, Paul A. Apostolides and Evangelos J. Kaloussis submitted their resignation with effect from no later than 30 November 2016 (for the first Member), 31 December 2016 (for the second Member) and 28 February 2017 (for the third Member). At the same meeting, the Board of Directors redetermined the capacity of its Member, Mr. Richard R. Gildea, as Non-Executive Member of the Board of Directors of the Bank, with effect from the date of his election, and, in parallel, resolved that Mr. Richard R. Gildea will fill the first vacated (due to resignation, as per the above) Board Member position and assume (then) the capacity of Non-Executive Independent Member of the Board of Directors.
The Ordinary General Meeting of Shareholders of 30.6.2016, has appointed for the fiscal year 2016 KPMG Certified Auditors .. as Certified auditors of the Bank by the following:
a. Principal Auditors: Nikolaos E. Vouniseas 
 John A. Achilas
b. Substitute Auditors: Michael A. Kokkinos
 Anastasios E. Panayides
The Bank's shares are listed in the Athens Stock Exchange since 1925 and are constantly ranked among the companies with the higher market capitalization. Additionally, the Bank's share is included in a series of international indices, such as MSCI Emerging Markets Index, the FTSE All World and FTSE Med 100.
Apart from the Greek listing, the shares of the Bank are listed in the London Stock Exchange in the form of international certificates (GDRs) and they are traded over the counter in New York (ADRs).
Total common shares in issue as at 30 September 2016 were 1,536,881,200. In Athens Stock Exchange are traded 1,367,706,054 common shares of the Bank, while the Hellenic Financial Stability Fund ("HFSF") possesses the remaining 169,175,146 common, registered, voting, paperless shares or percentage equal to 11.01% on the total of common shares issued by the Bank. The exercise of the voting rights for the shares of HFSF is subject to restrictions according to the article 7a of Law 3864/2010.
In addition, on the Athens Exchange there are 1,141,734,167 warrants that are traded each one incorporating the right of the holder to purchase 0,148173663047785 new shares owned by the HFSF.
During the nine month period of 2016, the average daily volume per session for shares was 16,750,500 and for warrants 4,737.
The credit rating of the Bank performed by three
international credit rating agencies is as follows:
 Moody's: Caa3
 Fitch Ratings: RD
 Standard & Poor's: CCC+
According to Law 4374/1.4.2016, the obligation to publish quarterly financial statements for the first and third quarter of the financial year, pursuant to the provision of Article 6 of Law 3556/30.4.2007 before its amendment, was abolished. However, the article 25 of Law 4416/6.9.2016 added the article 5b in the Law 3556/30.4.2007, based on which the obligation to prepare and publish consolidated Financial Statements for the first and third quarter of the financial year remains. This obligation relates to credit institutions whose securities are trading on a regulated market and are required to publish Consolidated Financial Statements.
Furthermore, according to No.8/754/14.4.2016 decision of the Hellenic Capital Market Commission with subject "Special Topics Periodic Reporting according to Law 3556/30.4.2007", the obligation to publish data and Information arising from the quarterly and half-yearly financial statements, as previously stated by the No.4/507/28.4.2009 decision of the Hellenic Capital Market Commission Board of Directors, was abolished.
The financial statements have been approved by the Board of Directors on 30 November 2016.

ACCOUNTING POLICIES APPLIED

1.1 Basis of presentation 
The Group has prepared the condensed interim financial statements as at 30.9.2016 in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as it has been adopted by the European Union. 
The financial statements have been prepared on the historical cost basis. As an exception, some assets and liabilities are measured at fair value. Those assets are mainly the following:
- Securities held for trading
- Derivative financial instruments
- Available for sale securities
- The convertible bond issued by the Bank which is included in "Debt securities in issue held by institutional investors and other borrowed funds"
The financial statements are presented in Euro, rounded to the nearest thousand, unless otherwise indicated. 
The accounting policies applied by the Group in preparing the condensed interim financial statements are consistent with those stated in the published financial statements for the year ended on 31.12.2015, after taking into account the following amendments to standards which were issued by the International Accounting Standards Board (IASB), adopted by the European Union and applied on 1.1.2016:
 Amendment to International Financial Reporting Standard 10 "Consolidated Financial Statements", toInternational Financial Reporting Standard 12 "Disclosure of Interests in Other Entities" and toInternational ccounting Standard 28 "Investments in Associates and Joint Ventures": Investment Entities: Applying the Consolidation Exception (Regulation 2016/1703/22.9.2016)
 Amendment to International Financial Reporting Standard 11 "Joint Arrangements": Accounting for acquisition of interests in joint operations (Regulation 2015/2173/24.11.2015)
 Amendment to International Accounting Standard 1 "Presentation of Financial Statements": Disclosure Initiative (Regulation 2015/2406/18.12.2015)
 Amendment to International Accounting Standard 16 "Property, Plant and Equipment" and to International Accounting Standard 38 "Intangible Assets": Clarification of Acceptable Methods of Depreciation and Amortization (Regulation 2015/2231/2.12.2015)
 Amendment to International Accounting Standard 16 "Property, Plant and Equipment" and to International Accounting Standard 41 "Agriculture": Bearer Plants (Regulation 2015/2113/23.11.2015) 
 Amendment to International Accounting Standard 27 "Separate Financial Statements": Equity Method in Separate Financial Statements (Regulation 2015/2441/18.12.2015)
 Improvements to International Accounting Standards - cycle 2012-2014 (Regulation 2015/2343/15.12.2015) 
The adoption of the above amendments by the Group, an analysis of which is presented in note 1.1 of the Group Financial Statements as at 31.12.2015, had no impact on its financial statements.
The adoption by the European Union, by 31.12.2016, of new standards, interpretations or amendments, which have been issued or may be issued during the year by the International Accounting Standards Board (IASB), and their mandatory or optional adoption for periods beginning on or after 1.1.2016, may affect retrospectively the periods presented in these interim financial statements.
1.2 Estimates, decision making criteria and significant sources of uncertainty
The Group, in the context of applying accounting policies and preparing financial statements in accordance with the International Financial Reporting Standards, makes estimates and assumptions that affect the amounts that are recognized as income, expenses, assets or liabilities. The use of estimates and assumptions is an integral part of recognizing amounts in the financial statements that mostly relate to the following:
Fair value of assets and liabilities
For assets and liabilities traded in active markets, the determination of their fair value is based on quoted, market prices. In all other cases the determination of fair value is based on valuation techniques that use observable market data to the greatest extent possible. In cases where there is no observable market data, the fair value is determined using data that are based on internal estimates and assumptions eg. determination of expected cash flows, discount rates, prepayment probabilities or potential counterparty default.
Impairment losses of financial assets
The Group, when performing impairment tests on loans and advances to customers, makes estimates regarding the amount and timing of future cash flows. Given that these estimates are affected by a number of factors such as the financial position of the borrower, the net realizable value of any collateral or the historical loss ratios per portfolio, actual results may differ from those estimated. Similar estimates are used in the assessment of impairment losses of securities classified as available for sale or held to maturity. 
Impairment losses of non - financial assets
The Group, at each year end balance sheet date, assesses for impairment non - financial assets, and in particular property, plant and equipment, investment property, goodwill and other intangible assets, as well as its investments in associates and joint ventures. Internal estimates are used to a significant degree to determine the recoverable amount of the assets, i.e. the higher between the fair value less costs to sell and the value in use.
Income Tax
The Group recognizes assets and liabilities for current and deferred tax, as well as the related expenses, based on estimates concerning the amounts expected to be paid to or recovered from tax authorities in the current and future periods. Estimates are affected by factors such as the practical implementation of the relevant legislation, the expectations regarding the existence of future taxable profit and the settlement of disputes that might exist with tax authorities etc. Future tax audits, changes in tax legislation and the amount of taxable profit actually realised may result in the adjustment of the amount of assets and liabilities for current and deferred tax and in tax payments other than those recognized in the financial statements of the Group. Any adjustments are recognized within the year that they become final.
Employee defined benefit obligations
Defined benefit obligations are estimated based on actuarial valuations that incorporate assumptions regarding discount rates, future changes in salaries and pensions, as well as the return on any plan assets. Any change in these assumptions will affect the amount of obligations recognized.
Provisions and contingent liabilities
The Group recognises provisions when it estimates that it has a present legal or constructive obligation that can be estimated reliably, and it is almost certain that an outflow of economic benefits will be required to settle the obligation. In contrast, when it is probable that an outflow of resources will be required, or when the amount of liability cannot be measured reliably, the Group does not recognise a provision but it provides disclosures for contingent liabilities, taking into consideration their materiality. The estimation for the probability of the outflow as well as for the amount of the liability are affected by factors which are not controlled by the Group, such as court decisions, the practical implementation of the relevant legislation and the probability of default of the counterparty, for those cases which are related to the exposure to off-balance sheet items.
The estimates and judgments applied by the Group in making decisions and in preparing the financial statements are based on historical information and assumptions which at present are considered appropriate. The estimates and judgments are reviewed on an ongoing basis in order to take into account current conditions, and the effect of any changes is recognized in the period in which the estimates are revised. 
1.2.1 Going concern principle
The Group applied the going concern principle for the preparation of the financial statements as at 30.9.2016. For the application of this principle, the Group takes into consideration current economic developments in order to make projections for future economic conditions of the environment in which it operates. The main factors that cause uncertainties regarding the application of this principle relate to the adverse economic environment in Greece and abroad and to the liquidity levels of the Hellenic Republic and the banking system.
Specifically, the high degree of uncertainty that characterizes the internal economic environment in recent years, as a result of the prolonged recession of the Greek economy, led to a significant deterioration in the creditworthiness of corporate and individuals, to an increase of non performing loans and therefore to the recognition of significant impairment losses by the Bank and by the Greek banking system in general. Additionally, during the first semester of the previous year, the internal economic environment was adversely affected by the uncertainties that were created during the negotiations of the Hellenic Republic with the European Commission, the European Central Bank and the International Monetary Fund for the financing of the Hellenic Republic, a fact that led to significant outflows of deposits, to the imposition of capital controls and of a bank holiday which was announced on 28.6.2015 and lasted until 19.7.2015. Capital controls remain in place until the date of approval of the financial statements, while the detailed provisions for their application are amended where appropriate by the adoption of a legislative act. 
At the same time the liquidity needs of Greek banks continue to be mostly satisfied by the emergency liquidity mechanisms of the Bank of Greece. 
The completion, in the third quarter of 2015, of the negotiations of the Hellenic Republic for the coverage of the financing needs of the Greek economy, led to an agreement for new financial support by the European Stability Mechanism. The agreement provided for the coverage of the financing needs of the Hellenic Republic for the medium-term period, under the condition that economic reforms are made, while additionally it provided for the allocation of resources to cover the recapitalization needs of the banks as a result of their assessment by the Single Supervisory Mechanism. With respect to the Bank specifically, a recapitalization of a total amount of  2,563 million took place in the fourth quarter of 2015, exclusively from private funds, as further analyzed in note 42 of the annual financial statements as at 31.12.2015.
In June of the current year the first evaluation of the Hellenic Republic financial support program was completed and the partial disbursement of the second installment of the program, amounting to  10.3 billion, was approved. The first disbursement of  7.5 billion took place in June and covered the short-term public debt servicing needs as well as the clearance of part of amounts overdue by the Hellenic Republic. The remaining amount of  2.8 billion was disbursed in October 2016 after the completion of the prerequisite actions that had been set. Meanwhile, in the fourth quarter of the current year the second evaluation of the financial support program begun and is expected to be completed in the near time. The completion of the first evaluation and the disbursement of installments are expected to contribute to the enhancement of the real economy and the improvement of investment prospects. The above, combined with the continuation of reforms and the measures described in the Eurogroup statement for the enhancement of the sustainability of the Greek debt (note 1.2.2), are expected to contribute to the gradual improvement of the economic environment in Greece and to the return of the economy to positive growth rates.
In parallel to the above, the Bank, in the context of its strategy to address the issue of non performing loans, is taking a series of actions and initiatives, as specifically mentioned in the relevant section of the Board of Director's Semi-annual Management Report of 2016, which, combined with the changes in the legislative framework, are expected to contribute to the effective management of the non performing loans portfolio.
With regards to the liquidity levels and funding costs of the Bank and the banking system in general, they have been positively affected by the reinstatement of Greek government securities in the perimeter of collaterals accepted by the European Central Bank, by the reduction of the haircut applied on eligible collaterals and by the ability to transfer part of the securities issued by the European Financial Stability Fund that the Bank holds to the European Central Bank, as mentioned in note 8 of the financial statements. 
Based on the above and taking into account the Group's high capital adequacy and the ability of the Bank to access the liquidity mechanisms of the eurosystem, the Group estimates that the conditions for the application of the going concern principle for the preparation of its financial statements are met.
1.2.2 Estimation of the Group's exposure to the Hellenic Republic
The Group's total exposure to Greek Government securities and loans related to the Hellenic Republic has not changed significantly compared to what is stated in note 41.1 of the consolidated financial statements as at 31.12.2015. The main uncertainties regarding the estimations for the recoverability of the Group's total exposure relate to the debt service capacity of the Hellenic Republic, which, in turn, is affected by the development of the macroeconomic environment in Greece and the Eurozone as well as by the levels of liquidity of the Hellenic Republic. 
Following the successful outcome of the negotiations of the Hellenic Republic for the coverage of the financing needs of the Greek economy, which were completed with the signing of a relative agreement with the European Stability Mechanism on 19.8.2015, a three-year funding (which could amount to  86 billion) was ensured, provided that specific commitments that relate to the achievement of specific financial targets and the implementation of reforms in the Greek economy will be respected. The financing agreement with the European Stability Mechanism is expected to cover the financing needs of the Hellenic Republic and in parallel to contribute to the growth of the Greek economy. The completion of the second assessment of the program is expected to be accompanied by measures for Greek debt relief in order to enhance its sustainability.
Pursuant to the above, in the Eurogroup of 9.5.2016 the framework based on which the sustainability of the Greek debt will be assessed was set. In the Eurogroup of 24.5.2016 the measures for the enhancement of the sustainability of the Greek debt were further specified, separately for the short, the medium and the long term. Based on this framework, under the baseline scenario, gross financing needs of the Hellenic Republic should remain below 15% of GDP during the post programme period for the medium term and below 20% of GDP thereafter. By taking these measures, the finalization of which is expected in subsequent meetings of the Eurogroup, it is estimated that the service capacity of the Greek debt will be improved.
Based on the above, the Group has not recognized impairment losses on the Greek Government securities that it holds as at 30.9.2016, however, it assesses the developments relating to the Greek Government debt in conjunction with the market conditions and it reviews its estimations for the recoverability of its total exposure at each reporting date.
1.2.3 Recoverability of deferred tax assets
The Group recognizes deferred tax assets to the extent that it is probable that it will have sufficient future taxable profit available, against which, deductible temporary differences and tax losses carried forward can be utilized. The amount of deferred tax assets recognized in the consolidated financial statements as at 30.9.2016 has not changed significantly compared with the corresponding amount of 31.12.2015. Therefore, what is stated in note 1.31.3 of the annual financial statements of 31.12.2015, regarding the main categories of deferred tax assets recognized is also applicable to these financial statements. In addition, with regards to the methodology applied for the assessment of recoverability of deferred tax assets, what is stated in the above note of the annual financial statements applies, taking also into account the factors that formulated the results of the current period. 

INCOMESTATEMENT
2. Gains less losses on financial transactions

From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Foreign exchange differences
14,198 
(14,826)
8,198 
(717)
Trading securities:




- Bonds
600 
1,640 
85 
205 
- Shares
(131)
(30)
18 
(189)
Investment securities: 




- Bonds
16,580 
(20,850)
2,545 
31,363 
- Shares
81,000 
(2,510)
(239)
(2,051)
- Other securities
(3,314)
(1,581)
(244)
(1,558)
From impairments/sales of investments
(1,705)
6,826 
(10)
22 
From sale of loans
19,257 
20 
8,381 
29 
Derivative financial instruments
(32,587)
53,346 
(11,943)
10,512 
Other financial instruments
(24,503)
22,980 
2,566 
(28,563)
Total
69,395
45,015 
9,357
9,053


Gains less losses on financial transactions of the nine month period were mainly affected by Visa Europe's acquisition transaction from Visa Inc and the valuation of the Group's subsidiary "Ionian Hotel Enterprises A.E." due to its classification as held for sale. In more detail:
On June 21, 2016, Visa Inc. completed the acquisition of Visa Europe. According to the contract (as amended on 10.5.2016), the date of completion of the transaction, Visa Inc. purchased from Visa Europe's members shares they held in their capacity as members. The price for this acquisition consists of:
i. The payment of a total amount of 12.25 billion upon completion of the transaction.
ii. The distribution of preferred shares.
iii. The payment of the amount of 1 billion on the third anniversary of the closing of the transaction plus interest.
The calculation of the transaction price was based on Visa Europe's net revenue contributed by each member for a specific period of time.
In this context, during the second quarter of the current period, the Group recognized as financial results from shares the amount of 55.6 million which consists of the cash received at the closing of the transaction and the recognition of the present value of the receivable from collecting the additional amount on the third anniversary.
In addition, the Group recognized during the year the preference shares of Visa Inc. acquired in connection with the transaction. These shares, which were classified as available for sale portfolio, were recognized at a fair value of 16.3 million by crediting gains less losses on financial transactions.
"Other financial instruments" includes a loss from Ionian Hotel Enterprises A.E. valuation of 37.9 million (note 25).



3. General administrative expenses

From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Operating Leases for buildings
32,637
34,569
10,752
12,217
Rent and maintenance of EDP equipment
15,246
14,258
5,022
4,034
EDP expenses
23,084
34,136
7,484
14,097
Marketing and advertisement expenses
16,796
14,828
5,733
4,551
Telecommunications and postage
17,546
17,831
5,565
7,410
Third party fees
35,256
34,073
13,628
10,192
Financial information services by third parties
5,749
4,883
2,374
1,552
Contribution to the Deposit guarantee fund - Investment Fund and Solvency Fund
47,818
59,372
13,649
37,912
Insurance
8,795
7,769
2,052
2,627
Consumables
4,690
5,394
1,646
2,256
Electricity
9,244
11,364
3,610
4,320
Third party fees for customer acquisition
41
96
15
40
Taxes (VAT, real estate etc)
60,517
59,401
24,072
22,050
Services from collection agencies
22,829
12,766
9,562
3,348
Building and equipment maintenance
6,876
6,677
2,379
2,205
Security
9,501
9,594
3,199
3,150
Cleaning fees
4,321
4,289
1,573
1,484
Other
59,891
63,412
21,433
23,938
Total
380,837
394,712
133,748
157,383

Specific cost categories are presented increased compared to the corresponding amounts of the comparative period which was influenced by the bank holiday, with more significant impact identified in marketing and advertisement expenses and the services' charges from collection agencies. However, the total amount of general administrative expenses is declining mainly because the comparative period was burdened by extraordinary contribution on the reorganization of the Greek credit institutions and merger costs related mainly to maintenance of computer applications.
Regarding the regulatory framework governing the resolution of credit institutions, the following is noted:
On 23.7.2015 under Law 4335/2015, the European Directive 2014/59 was incorporated into Greek Law to establish a framework for the recovery and resolution of credit institutions and investment entities. In particular, the Resolution Scheme of Hellenic Deposit and Investment Guarantee Fund (HDIGF) is defined as the National Resolution Fund which within ten years (until 31 December 2024) should gradually, create a reserve equal to at least 1% of the deposits guaranteed by the HDIGF. From 1.1.2016, the Single Resolution Mechanism (SRM) is responsible for the resolution of credit institutions established in country-member states of the Eurozone. It operates in cooperation with the Single Resolution Fund (SRF), which will cover the resolution costs of non-sustainable credit institutions.
With Law 4370/2016, the Directive 2014/49 / EU of the European Parliament and the Decision of the Council of 16 April 2014 was incorporated into Greek law which enacts the same rules for all Deposit Guarantee Schemes (DGS).
The Single Resolution Board, determined that the 2016 contribution for credit institutions may provide irrevocable payment commitments amounting up to 15% of their total obligation which for the Bank amounts to 21 million. These irrevocable payment commitments have to be fully covered by cash collateral. On 20.5.2016, the Bank signed a contract with the Single Resolution Board to provide irrevocable payment commitment and established the necessary cash collateral for the 2016 contribution.



4. Impairment losses and provisions to cover credit risk


From 1 January to 
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Impairment losses on loans and advances to customers (note 7)
886,477 
2,370,218 
266,662 
261,069 
Provisions to cover credit risk relating to off balance sheet items (note 15)
149 
2,427 
(345)
(274)
Recoveries
(24,674)
(15,312)
(9,193)
(2,304)
Total
861,952
2,357,333
257,124
258,491
In the nine month period, impairment losses on loans have been significantly burdened from the recognition of losses associated with corporate loans restructuring and the increase in impairment losses in specific retail portfolios which will contribute to the optimal management of non-performing loans. 
Respectively, the nine month period of 2015 was affected by significant impairment losses, after taking into consideration the special ecomonic and microeconomic conditions that existed in the Greek from 30.6.2015 and onwards and affected the values of the parameters taken into account in the impairment test and the expected cash flows of customers operating in economy sectors that have been adversely affected.

5. Income tax
In accordance with Article 1 par 4 of Law 4334/2015 "Urgent prerequisites for the negotiation and conclusion of an agreement with the European Stability Mechanism (ESM)" the corporate income tax rate for legal entities increased from 26% to 29%. The increased rate will apply for profits arising in fiscal years commencing on or after 1 January 2015 without the law explicitly defining regarding the retrospective application of income tax rate for profits of fiscal year 2014 and they have been incorporated into the results of the nine month period of 2015, as shown in the tables below.
For the Bank's subsidiaries and branches operating in other countries, the applicable nominal tax rates for accounting periods 2015 and 2016 are as follows:
Cyprus  12.5
Bulgaria  10
Serbia  15
Romania  16
FYROM  10
Albania 15
Jersey 10
United Kingdom 20* (from 1.4.2015)

In accordance with article 65A of Law 4174/2013, from 2011, the statutory auditors and audit firms conducting statutory audits to a Societe Anonyme (S.A.), are obliged to issue an Annual Tax Certificate on the compliance on tax issues. This tax certificate is submitted to the entity being audited within the first ten days of the seventh month after the end of the audited financial year, as well as, electronically to the Ministry of Finance, no later than the end of the seventh month after the end of the audited financial year. For fiscal years 2011 up to 2015 the Bank and its local subsidiaries have obtained the relevant tax certificate without any qualifications on the tax issues covered. In accordance with article 56 of Law 4410/3.8.2016 for the fiscal years from 1.1.2016 and onwards, the issuance of tax certificate is rendered optional.
The income tax in the income statement from continuing ope-rations is analysed in the table below, while the income tax from discontinued operations is analysed in note 25:

* Until 31.3.2015 the tax rate was 21%.



From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Current
8,753
14,519
1,944
4,971
Deferred
23,809
(300,364)
6,171
18,542 
Effect on deferred tax due to the changes in income tax rate

(437,353)

(437,353)
Total
32,562
(723,198)
8,115
(413,840)
Deferred tax recognized in the income statement is attributable to temporary differences, the effect of which is analyzed in the table below:

From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Debit difference of Law 4046/2012
33,416 
(91,030)
11,139 
(111,003)
Write-offs, depreciation and impairment of fixed assets
10,507 
23,338 
3,847 
13,464 
Valuation/impairment of loans
(66,432)
(611,137)
(5,983)
(221,988)
Valuation of loans due to hedging
(777)
(651)
(137)
(101)
Employee defined benefit obligations and insurance funds
26,146 
13,886 
947 
14,304 
Valuation of derivatives
(8,026)
19,081 
(1,973)
5,069 
Effective interest rate
(44)
(1,099)
235 
(267)
Fair value change of liabilities to credit institutions and other borrowed funds due to fair value hedge
3,937 
(12,879)
466 
(10,446)
Valuation/impairment of bonds and other securities
(15,790)
22,060 
(26,351)
(3,477)
Tax losses carried forward
32,007 
(101,503)
8,055 
(72,414)
Other temporary differences
8,865 
2,217 
15,926 
(31,952)
Total
23,809
(737,717)
6,171
(418,811)
A reconciliation between the nominal and effective tax rate is provided below:

From 1 January to

30.9.2016
30.9.2015

%

%

Profit/(loss) before income tax

53,727 

(1,471,096)
Income tax (weighted average nominal tax rate)
44.26 
23,780 
27.96 
(411,284)
Increase/(decrease) due to:




Non taxable income
(21.24)
(11,414)
0.25 
(3,622)
Non deductible expenses
13.42 
7,210 
(3.49)
51,384
Deferred tax recognition for temporary differences of previous years
(4.22)
(2,269)
0.04 
(611)
Non-recognition of deferred tax for temporary differences of the current period
17.54 
9,426 
(2.69)
39,502 
Other tax adjustments
10.85 
5,829 
0.06 
(859)
Income tax (effective tax rate)
60.61 
32,562 
22.13 
(325,490)
Adjustment tax rates on temporary differences 31.12.2014



(397,708)
Income tax (effective tax rate)



(723,198)



From 1 July to

30.9.2016
30.9.2015

%

%

Profit/(loss) before income tax

49,831 

1,137 
Income tax (weighted average nominal tax rate)
40.31 
20,089 
27.88 
317 
Increase/(decrease) due to:




Non taxable income
(0.33)
(162)
(106.86)
(1,215)
Non deductible expenses
(9.03)
(4,498)
868.60 
9,876
Deferred tax recognition for temporary differences of previous years
(3.48)
(1,734)


Non-recognition of deferred tax for temporary differences of the current period
8.74 
4,354 
305.63 
3,475 
Other tax adjustments
(19.94)
(9,934)
972.74 
11,060
Income tax (effective tax rate)
16.27 
8,115 
2,067.99 
23,513 
Adjustment tax rates on temporary differences 31.12.2014



(437,353)
Income tax (effective tax rate)



(413,840)

According to article 5 of Law 4303/17.10.2014 "Ratification of the Legislative Act "Emergency legislation to replenish the General Secretary of Revenue due to early termination of his service" (A 136) and other provisions", deferred tax assets of legal entities supervised by the Bank of Greece, under article 26 paragraphs 5, 6 and 7 of Law 4172/2013 that have been or will be recognized and are due to the debit difference arising from the PSI and the accumulated provisions and other general losses due to credit risk, with respect to existing amounts up to 31 December 2014, are considered final and settled claims against the State, if, the accounting result for the period, after taxes, is a loss based on the audited and approved financial statements by the Ordinary Shareholders' General Meeting.
The inclusion in the Law is implemented by the General Meeting of Shareholders related to tax assets from 2016 onwards and refers to the fiscal year 2015 and onwards, whereas it is envisaged the end of inclusion in the Law with the same procedure and after obtaining relevant approval from the Regulatory Authority.
According to article 4 of Law 4340/1.11.2015 "Recapitalization of financial institutions and other provisions of the Ministry of Finance" the above were amended regarding the time of the application which is postponed for a year. In addition, the amount of the relevant deferred tax asset which is included to the same legislation is limited to the amount related to the provisions for credit risk, which have been accounted until 30 June 2015.
On 30 September 2016 the amount of deferred tax assets which is estimated to be within the scope of the aforementioned Law amounts to 3,383,640 (31.12.2015: 3.417.055).

Income tax of comprehensive income recognized directly in Equity

From 1 January to

30.9.2016
30.9.2015

Before income tax
Income
tax
After
income tax
Before income tax
Income
tax
After
income tax
Amounts that may be reclassified to the Income Statement






Net change in available for sale securities' reserve 
(40,551)
16,941
(23,610)
60,619 
(21,981)
38,638 
Net change in cash flow hedge reserve
(141,535)
41,103
(100,432)
39,758
(3,946)
35,812 
Foreign exchange differences on translating and hedging the net investment in foreign operations
(3,608)
(1,276)
(4,884)
4,040
517
4,557 
Change in the share of other comprehensive income of associates and joint ventures



101

101 
Total
(185,694)
56,768
(128,926)
104,518 
(25,410)
79,108 
Amounts that may not be reclassified to the Income Statement






Effect due to change of the income tax rate in actuarial gains/(losses) of defined benefit obligations




2.175
2.175
Total
(185,694)
56,768 
(128,926)
104,518
(23,235)
81,283

From 1 July to

30.9.2016
30.9.2015

Before income tax
Income
tax
After income tax
Before income tax
Income
tax
After
income tax
Amounts that may be reclassified to the Income Statement






Net change in available for sale securities' reserve 
(19,713)
13,398 
(6,315)
388,738 
(99,901)
288,837 
Net change in cash flow hedge reserve
(13,840)
3,977 
(9,863)
(23,987)
12,640 
(11,347)
Foreign exchange differences on translating and hedging the net investment in foreign operations
(1,667)
758 
(909)
3,405 
(712)
2,693 
Total
(35,220)
18,133 
(17,087)
368,156 
(87,973)
280,183 
Amounts that may not be reclassified to the Income Statement






Effect due to change of the income tax rate in actuarial gains/(losses) of defined benefit obligations




2.175
2.175
Total
(35,220)
18,133 
(17,087)
368,156
(85,798)
282,358


During the nine month period of 2016, "Retained earnings" include a credit tax amount of 281 which derives from the share capital increase expenses which were recognized in the same account and relates to the share capital increase which took place during 2015.
In addition, during the same period, "Retained earnings" include deferred tax asset amount of 24 which derives from (Purchases)/(Redemptions)/ Sales of hybrid securities. The respective amount for the nine month period of 2015 was 296 (deferred tax asset).
It should be noted that in the nine month period of 2015, in the account "Retained Earnings", a deferred tax liability amounting to 6,261 was recognized, resulting from the change of income tax rate to the share capital increase expenses recognized in the same account in previous years. 
6. Earnings/(losses) per share

a. Basic
Basic earnings/(losses) per share are calculated by dividing the profit/(losses) after income tax attributable to ordinary equity owners of the Bank, by the weighted average number of outstanding ordinary shares, after deducting the weighted average number of treasury shares held by the Bank during the period.
For the calculation of basic earnings/(losses) per share, profit or loss for the period is adjusted with the deduction of the after-tax amount of dividends of those preference shares that have been classified in equity. The after-tax amount of preference dividends that is deducted is:
i. The after-tax amount of any dividends of preference shares on non-cumulative dividend preference shares declared for distribution during the year and
ii. The after-tax amount of the dividends from preference shares for cumulative dividend preference shares required for the period, regardless of whether the dividends have been approved.
b. Diluted
Diluted earnings/(losses) per share is calculated by adjusting the weighted average number of ordinary shares outstanding to the presumed conversion amount of all dilutive potential ordinary shares. The Bank does not have any dilutive potential ordinary shares and in addition, based on the issuance terms of the convertible bond loan with Credit Agricole S.A., basic and dilutive earnings/(losses) per share should not differ.


From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Profit/(losses) attributable to equity owners of the Bank
22,022 
(838,636)
41,065 
413,614 
Weighted average number of outstanding ordinary shares
1,536,881,200
255,381,197
1,536,881,200
255,381,197
Basic and diluted earnings/(losses) per share (in )
 0.0143 
 (3.2839)
 0.0267 
 1.6196 

From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Profit/(loss) from continuing operations attributable to equity owners of the Bank 
20,975 
(748,150)
41,625 
414,892 
Weighted average number of outstanding ordinary shares 
1,536,881,200
255,381,197
1,536,881,200
255,381,197
Basic and diluted earnings/(losses) per share from continuing operations (in )
 0.0136 
 (2.9295)
 0.0271 
 1.6246 



From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Profit/(loss) from discontinued operations attributable to equity owners of the Bank
1,047 
(90,486)
(560)
(1,278)
Weighted average number of outstanding ordinary shares
1,536,881,200
255,381,197
1,536,881,200
255,381,197
Basic and diluted earnings/(losses) per share from discontinued operations (in )
0.0007
 (0.3543)
 (0.0004)
 (0.0050)
The weighted average number of the ordinary shares as at 30.9.2015, has been retrospectively restated from the beginning of the year, after the decrease of the total number of shares due to the merger in proportion of 50 voting common shares of old nominal value to 1 voting common share of new nominal value which took place on November 2015.


ASSETS
7. Loans and advances to customers

30.9.2016
31.12.2015
Individuals


Mortgages 
19,881,445
20,171,970
Consumer:


- Non-securitized
4,271,660
4,063,791
- Securitized
1,158,516
1,299,934
Credit cards:


- Non-securitized
712,528
720,016
- Securitized
537,494
565,583
Other
1,337
2,601
Total
26,562,980
26,823,895
Companies


Corporate loans:


- Non-securitized
27,246,034
27,547,074
- Securitized
1,904,668
2,126,179
Finance leases (Leasing):


- Non-Securitized
367,554
378,398
- Securitized
320,180
315,201
Factoring
554,652
599,387
Total
30,393,088
30,966,239
Other receivables
366,878
417,737

57,322,946
58,207,871
Less:
Allowance for impairment losses *
(12,452,570)
(12,021,755)
Total
44,870,376
46,186,116

The Bank and Alpha Leasing A.E. have proceeded in securitization of consumer loans, corporate loans, credit cards and finance lease receivables through special purpose entities controlled by them.
Based on the contractual terms and structure of the above transactions (e.g. allowance of guarantees or/and credit enhancement or due to the Bank owing the bonds issued by the special purpose entities), the Bank and Alpha Leasing A.E. retained in all cases the risks and rewards deriving from the securitized portfolios.
The Bank proceeded on 8.7.2015 to the cancellation of an amount of 3.75 billion of covered bonds which had been issued and secured with mortgage loans. As at 30.9.2016, the balance of the covered bonds amounts to 5 million (note 13). The book value of mortgage loans provided as coverage for the above mentioned bonds amounted to 16.5 million.

* In addition to the allowance for impairment losses regarding loans and advances to customers, a provision of 4,862 (31.12.2015: 4,713) has been recorded to cover credit risk relating to off-balance sheet items. The total provision recorded to cover credit risk amounts to 12,457,432 (31.12.2015: 12,026,468).


Allowance for impairment losses
Balance 1.1.2015
8,830,277
Impairment losses for the period from continuing operations (note 4)
2,370,218
Impairment losses for the period from discontinued operations
534
Transfers of accumulated provisions to assets held for sale
(110,200)
Change in present value of the impairment losses from continuing operations 
402,334
Change in present value of the impairment losses from discontinued operations 
1,435
Foreign exchange differences
42,704
Loans written-off during the period
(237,434)
Balance 30.9.2015
11,299,868
Changes for the period 1.10. - 31.12.2015

Impairment losses for the period from continuing operations
677,089
Transfers of accumulated provisions to assets held for sale
(1,712)
Change in present value of the impairment losses from continuing operations
145,662
Loans written-off during the period
(111,229)
Foreign exchange differences
12,077
Balance 31.12.2015
12,021,755
Changes for the period 1.1. - 30.9.2016

Impairment losses for the period (note 4)
886,477
Transfers of accumulated provisions to assets held for sale
(99,975)
Change in present value of impairment losses
333,141
Sales of impaired loans
(17,958)
Foreign exchange differences
(6,987)
Loans written-off during the period
(663,883)
Balance 30.9.2016
12,452,570
The finance lease receivables by duration are as follows:

30.9.2016
31.12.2015
Up to 1 year
392,692
396,490
From 1 year to 5 years
143,325
136,893
Over 5 years
248,847
265,009

784,864
798,392
Non accrued finance lease income
(97,130)
(104,793)
Total
687,734
693,599
The net amount of finance lease receivables by duration is analyzed as follows:

30.9.2016
31.12.2015
Up to 1 year
377,541
380,421
From 1 year to 5 years
102,828
91,614
Over 5 years
207,365
221,564
Total
687,734
693,599


8. Investment and held for trading securities

i. Held for trading securities
Securities held for trading amounted to 4 million on 30.9.2016 (31.12.2015: 2.8 million) out of which Greek Government bonds 2.3 million (31.12.2015: 1.9 million).
ii. Investment securities
a. Available for sale
The available for sale portfolio amounted to 5.5 billion as at 30.9.2016 (31.12.2015: 5.8 billion). These amounts include securities issued by the Greek State that amount to 3.5 billion as at 30.9.2016 (31.12.2015: 3.9 billion) out of which 1.7 billion (31.12.2015: 2.1 billion) relate to Greek Government Treasury bills. The Group during the nine month period of 2016 has recognized impairment losses for shares amounting to 1,724 and for mutual funds amounting to 1,595 which are included in "Gain less losses on financial transactions".
b. Held to maturity
The held to maturity portfolio amounted to 44.8 million as at 30.9.2016 (31.12.2015: 79.7 million).
c. Loans and receivables
Loans and receivables include bonds issued by the European Financial Stability Facility (E.F.S.F.) with a nominal value of 3,960,544 received by the Bank as a result of the share capital increase which was completed on 6.6.2013 and a nominal value of 284,628 which were transferred to the Bank from the Hellenic Financial Stability Fund for the undertaking of customer deposits from the former Cooperative Banks of West Macedonia, Evia and Dodecanese in December 2013.
These bonds under the original contract could only be used as collateral to obtain liquidity from the Eurosystem or from interbank counterparties in repos.
In April 2016 the subscription agreement between the European Financial Stability Facility (EFSF), the Hellenic Financial Stability Fund (HFSF) and the Bank was revised. The revision refers to the terms of use of the above bonds. The revision states that the Bank may participate with the EFSF bonds in the purchase programme for the bonds issued by central governments, special bodies-securities issuers and European supranational institutions of the Eurozone (Public Sector Purchase Programme - PSPP) conducted by ECB. According to the ECB's decision, a total up to 50% of each EFSF issue can be purchased until the completion of the program in March 2017. During the nine month period of 2016, the Bank conducted sale transactions of EFSF securities at a nominal value of 905 million, in the context of the PSPP program. The total book value of these bonds on 30.9.2016 was 3.4 billion (31.12.2015: 4.3 billion).



9. Investment property

Land -Buildings
Balance 1.1.2015

Cost 
 693,486 
Accumulated depreciation and impairment losses
(126,274)
1.1.2015 - 30.9.2015

Net book value 1.1.2015
567,212
Additions
11,563
Additions from companies consolidated for the first time in the nine month period of 2015
43,844 
Reclassifications to "Other Assets"
(110)
Reclassification from "Property, plant and equipment"
4,241 
Reclassification to "Assets held for sale"
(939)
Reclassification of investment assets from discontinued operations to "Asset held for sale"
(1,277)
Foreign exchange differences
1,733 
Disposals/Write-offs
 (9,077)
Depreciation charge for the period from continuing operations
 (8,051)
Net book value 30.9.2015
 609,139 
Balance 30.9.2015

Cost 
 755,884 
Accumulated depreciation and impairment losses
 (146,745)
1.10.2015 - 31.12.2015
 
Net book value 1.10.2015
 609,139 
Additions
 9,980 
Additions from companies consolidated for the first time in the fourth quarter of 2015
 47,097 
Reclassifications from "Other Assets"
 2 
Reclassification to "Property, plant and equipment"
 (96)
Foreign exchange differences
 (2,504)
Disposals/Write-offs
 (4,759)
Depreciation charge for the period from continuing operations
 (2,913)
Impairment losses 
 (32,284)
Net book value 31.12.2015
 623,662 
Balance 31.12.2015

Cost 
 800,910 
Accumulated depreciation and impairment losses
 (177,248)
1.1.2016 - 30.9.2016
 
Net book value 1.1.2016
 623,662 
Additions
 47,243 
Additions from companies consolidated for the first time in the nine month period of 2016
 12,135 
Reclassification to "Assets held for sale"
 (40,233)
Reclassification from "Property, plant and equipment"
 25,314 
Foreign exchange differences
 2,236 
Disposals/Write-offs
 (23,925)
Depreciation for the period from continuing operations
 (9,671)
Net book value 30.9.2016
 636,761 
Balance 30.9.2016
 
Cost 
 813,495 
Accumulated depreciation and impairment losses
 (176,734)

In the nine month period of 2016 transfers to "Assets held for sale" related mainly to fixed assets of APE Fixed Assets A.E..
In 2015, an impairment loss amounting to 32.3 million was recognized, in order for the carrying amount of investment property not to exceed their recoverable amount, as estimated on 31.12.2015 by certified valuators.

The additions from companies consolidated for the first time in 2015 and in the nine month period of 2016 and the additions of the current period relate to investment property which were obtained as collateral for loans and acquired by the Group in the context of its credit risk methodology.



10. Property, plant and equipment

Land and Buildings
Leased equipment
Equipment
Total
Balance 1.1.2015




Cost
1,417,632
4,302
518,133
1,940,067
Accumulated depreciation and impairment losses
(411,831)
(3,152)
(441,736)
(856,719)
1.1.2015 - 30.9.2015




Net book value 1.1.2015
1,005,801
1,150
76,397
1,083,348
Foreign exchange differences
593
6
162
761
Additions
5,650
60
13,675
19,385
Additions from discontinued operations


8
8
Additions from companies consolidated for the first time in the nine month period of 2015


7
7
Disposals/Write-offs
(1,945)

(55)
(2,000)
Reclassification to "Investment property"
(4,241)


(4,241)
Reclassification of assets from discontinued operations to "Asset held for sale"
(3,962)

(2,685)
(6,647)
Reclassification internally to property, plant and equipment
49
(18)
(31)

Reclassification from/to "Other assets"
(8,505)

23
(8,482)
Depreciation charge for the year from discontinued operations
(20,636)
(435)
(14,810)
(35,881)
Net book value 30.9.2015
972,804
763
72,691
1,046,258
Balance 30.9.2015




Cost
1,391,353
4,181
518,168
1,913,702
Accumulated depreciation and impairment losses
(418,549)
(3,418)
(445,477)
(867,444)
1.10.2015 - 31.12.2015




Net book value 1.10.2015
972,804
763
72,691
1,046,258
Foreign exchange differences
(612)
(7)
(24)
(643)
Additions
2,009
42
3,777
5,828
Additions from companies consolidated for the first time in the fourth quarter of 2015


942
942
Disposals/Write-offs
(1,766)
(7)
(72)
(1,845)
Reclassification from "Investment property"
96


96
Reclassification of assets from discontinued operations to "Assets held for sale"
(1,383)

(446)
(1,829)
Reclassification to "Assets held for sale"
(164,166)

(3,088)
(167,254)
Reclassification internally to property, plant and equipment

633
(633)

Reclassification from/to "Other assets"
(5,597)
(18)
(563)
(6,178)
Depreciation charge for the year from continuing operations
(6,829)
35
(5,427)
(12,221)
Impairment losses
(1,929)

(324)
(2,253)
Net book value 31.12.2015
792,627
1,441
66,833
860,901
Balance 31.12.2015




Cost
1,169,294
4,090
472,059
1,645,443
Accumulated depreciation and impairment losses
(376,667)
(2,649)
(405,226)
(784,542)
1.1.2016 - 30.9.2016




Net book value 1.1.2016
792,627
1,441
66,833
860,901
Foreign exchange differences
(346)
11
64
(271)
Additions
5,344
70
16,873
22,287
Additions from companies consolidated for the first time in the nine month period of 2016


243
243
Disposals/Write-offs
(1,936)
(3)
(64)
(2,003)
Reclassification to "Investment property"
(25,314)


(25,314)
Reclassification internally from/to "Property, plant and equipment"
(78)
(467)
545

Reclassification to "Other assets"
(4,035)


(4,035)
Depreciation charge from continuing operations
(16,425)
(249)
(14,485)
(31,159)
Net book value 30.9.2016
749,837
803
70,009
820,649
Balance 30.9.2016




Cost
1,133,733
3,450
479,065
1,616,248
Accumulated depreciation and impairment losses
(383,896)
(2,647)
(409,056)
(795,599)
During the current period there was no significant variation in property, plant and equipment.
In 2015, an impairment loss of 2.3 million was recognized for property, plant and equipment and was recorded in "Other Expenses".


11. Goodwill and other intangible assets

Goodwill
Software
Other
Total
Balance 1.1.2015




Cost 

 488,347 
 155,103 
 643,450 
Accumulated amortization and impairment losses

 (278,559)
 (33,467)
 (312,026)
1.1.2015 - 30.9.2015




Net book value 1.1.2015

 209,788 
 121,636 
 331,424 
Additions

 37,435 
 72 
 37,507 
Additions from discontinued operations

38 

 38 
Additions from companies consolidated for the first time in the nine month period of 2015
 2,900 


 2,900 
Reclassification of assets of discontinued operations to "Assets held for sale"

 (3,561)

 (3,561)
Foreign exchange differences

 23 

 23 
Amortization for the period from continuing operations

 (16,838)
 (17,129)
 (33,967)
Net book value 30.9.2015
 2,900 
 226,885 
 104,579 
 334,364 
Balance 30.9.2015




Cost 
 2,900 
 519,423 
 153,113 
 675,436 
Accumulated amortization and impairment losses

 (292,538)
 (48,534)
 (341,072)
1.10.2015 - 31.12.2015




Net book value 1.10.2015
 2,900 
226,885 
104,579 
 334,364 
Additions

 23,382 

 23,382 
Reclassification of assets of discontinued operations to "Assets held for sale"

 (823)
 (1)
 (824)
Reclassification to "Other assets held for sale"

 22 

 22 
Foreign exchange differences

 175 

 175 
Amortization for the period from continuing operations

 (6,187)
 (5,781)
 (11,968)
Net book value 31.12.2015
 2,900 
 243,454 
 98,797 
 345,151 
Balance 31.12.2015




Cost 
 2,900 
 544,009 
 152,363 
 699,272 
Accumulated amortization and impairment losses

 (300,555)
 (53,566)
 (354,121)
1.1.2016 - 30.9.2016




Net book value 1.1.2016
 2,900 
 243,454 
 98,797 
 345,151 
Additions

 59,576 

 59,576 
Foreign exchange differences

 (27)

 (27)
Amortization for the period from continuing opearations

 (19,749)
 (13,719)
 (33,468)
Net book value 30.9.2016
 2,900 
 283,254 
 85,078 
 371,232 
Balance 30.9.2016




Cost 
 2,900 
 603,103 
 152,201 
 758,204 
Accumulated amortization and impairment losses

 (319,849)
 (67,123)
 (386,972)
The additions of the nine month period of 2016 mainly concern acquisitions of user rights for computer applications.
In 2015 the goodwill amounting to 2.9 million relates to the acquired company Asmita Gardens S.R.L. during the first half of 2015 following the completion of valuation of its net assets (note 27).


Liabilities
12. Due to banks

30.9.2016
31.12.2015
Deposits:


- Current accounts
38,248
112,482
- Term deposits


 Central Banks 
20,815,626
24,404,828
 Other credit institutions
27,745
17,408
 Cash collateral for derivative margin accounts
18,837
56,960
Sale of repurchase agreements (Repos)
652,062
269,292
Borrowing funds
250,122
252,123
Deposits redeemable at notice:


- Other credit institutions
3,136
2,270
Total 
21,805,776
25,115,363

Eurosystem funding decreased by 3.6 billion during the nine month period of 2016 mainly due to the sale of EFSF bonds through the PSPP programme (note 8), new repurchase agreements (Repos) and the changes in loan and deposit balances. In June 2016, the European Central Bank carried out a new program of targeted long term refinancing operations (TLTRO-II) with a four year duration. The Bank participates in this program with an amount of 1.5 billion.

13. Debt securities in issue and other borrowed funds

i. Issues guaranteed by the Greek State
(Law3723/9.12.2008)
According to Law3723/9.12.2008 and within the programme for the enhancement of the Greek's economy's liquidity, during the nine month period of 2016, the Bank proceeded to the issuance of senior debt securities guaranteed by the Greek State amounting to 5.15 billion while the maturities/redemptions for the same period amounted to 11.62 billion.
The total balance of senior debt securities guaranteed by the Greek State as at 30.9.2016 amounts to 2.75 billion (31.12.2015: 9.22 billion).
These securities are not included in the "Debt securities in issue and other borrowed funds", as they are held by the Group.
ii. Covered bonds*
Covered bonds are not included in caption "Debt securities in issue and other borrowed funds" as these securities are held by the Group. The total balance of covered bonds as at 30.9.2016 amounts to 5 million. 

iii. Senior debt securities
Balance 1.1.2016
29,742
Changes for the period 1.1 - 30.9.2016

Maturities/Repayments
(2,904)
Fair value change 
38 
Accrued interest
567 
Foreign exchange differences
(81)
Balance 30.9.2016
27,362
On 23.5.2016 an early redemption of senior debt security of a nominal value of USD 3 million took place.
* Financial disclosures regarding covered bond issues, as determined by the 2620/28.8.2009 Act of the Bank of Greece have been published on the Bank's website.


iv. Liabilities from the securitization of shipping loans
Balance 1.1.2016
340,272
Changes for the period 1.1 - 30.9.2016

Maturities/Repayments
(82,720)
Accrued interest
6,456 
Foreign exchange differences
(8,261)
Balance 30.9.2016
255,747 
The Bank proceeded to a shipping loan securitization transaction, transferring them to the fully consolidated Special Purpose Entity, Alpha Shipping Finance Ltd, which raised funding from third parties. The liability of the Group to third parties on 30.9.2016 amounts to 256 million.
v. Liabilities from the securitization of other loans
Liabilities arising from the securitisation of consumer loans, corporate loans, credit cards and leasing are not included in "Debt securities in issue and other borrowed funds" since these securities of nominal value 4.2 billion have been issued by special purpose entities and are held by the Bank.
vi. Subordinated debt 
a. Subordinated debt (Lower Tier II, Upper Tier II)
Balance 1.1.2016
100,270
Changes for the period 1.1 - 30.9.2016

(Repurchases)/sales
(17,653)
Accrued interest
(21)
Balance 30.9.2016
82,596
b. Convertible bond loan
Balance 1.1.2016
24,600
Changes for the period 1.1 - 30.9.2016

Fair value change
(11,040)
Balance 30.9.2016
13,560
The convertible bond concerns bond issuance with nominal value 150 million issued by the Bank on 1.2.2013 under an agreement with Credit Agricole S.A. for the acquisition of former Emporiki Bank. The decrease in the liability from the convertible bond at the amount of 11.04 million was recognized in "Gains less losses on financial transactions".
Total of debt securities in issue and other borrowed funds as at 30.9.2016
379,265
Of the above debt securities in issue amounting to 379,265 an amount of 79,541 (31.12.2015: 94,155) held by Group customers has been reclassified to "Due to customers". Therefore, the balance of "Debt securities in issue held by institutional investors and other borrowed funds" as at 30.9.2016, amounts to 299,724 (31.12.2015: 400,729).


14. Employee defined benefit obligations

The decrease of defined benefit obligations by 25 million compared to 31.12.2015 related mainly to the partial payment of a recognized liability to the Employees Supplementary Funds (TAP) of former Alpha Credit Bank. More specifically, on 20.5.2016 the General Meeting of the representatives of TAP's members decided the liquidation of TAP under the terms of the agreement signed on 21.4.2016 between the Bank, the Staff Association and TAP. Within this context the Bank paid in the nine month period of 2016 an amount of 31.4 million to TAP by offsetting the relevant liability which amounted to 27.4 million as at 31.12.2015. The final settlement of the liability is estimated that will take place during the current fiscal year.

15. Provisions

30.9.2016
31.12.2015
Insurance 
211,391
168,818
Provisions to cover credit risk and other provisions
135,674
129,640
Total
347,065
298,458
a. Insurance

30.9.2016
31.12.2015
Life insurance


Mathematical reserves
210,896
168,629
Outstanding claim reserves
495
189
Total
211,391
168,818
b. Provisions to cover credit risk and other provisions
Balance 1.1.2015
80,501
Changes for the period 1.1 - 30.9.2015

Reclassification of provisions from Bulgaria branch to "Liabilities related to assets held for sale"
 (780)
Provisions to cover credit risk relating to off-balance sheet items (note 4)
 2,427 
Other provisions for the period
 3,915 
Other provisions used during the period
 (5,665)
Write-offs
 (922)
Foreign exchange differences
 16 
Balance 30.9.2015
 79,492 
Changes for the period 1.10 - 31.12.2015

Reclassification of provisions from Ionian Hotel Enterpises A.E. to "Liabilities related to assets held for sale"
 (54)
Provisions to cover credit risk relating to off-balance sheet items
 (13,135)
Other provisions for the period
 629 
Other provisions used during the period
 (2,398)
Provision for voluntary separation scheme of Alpha Bank A.E.
 64,300 
Write-offs
 922 
Foreign exchange differences
(116)
Balance 31.12.2015
 129,640 
Changes for the period 1.1. - 30.9.2016

Provisions to cover credit risk relating to off-balance sheet items (note 4)
 149 
Provision for voluntary separation scheme of Alpha Bank Cyprus Ltd
 30,993 
Provision used for voluntary separation scheme of Alpha Bank Cyprus Ltd
 (30,993)
Provision used for separation scheme of Alpha Bank A.E.
 (2,624)
Other provisions for the period
 11,955 
Other provisions used during the period
 (3,478)
Foreign exchange differences
 32 
Balance 30.9.2016
135,674



The amounts of other provisions charged to the profit and loss account are included in "Other Expenses" of the income statement.
On 30.9.2016 the balance of provisions to cover credit risk relating to off-balance sheet items amounts to 4.9 million and other provisions to 130.7 million out of which:
 An amount of 35.2 million relates to pending legal cases.
 An amount of 61.7 million relates to the balance of provision for voluntary separation scheme of Alpha Bank A.E., that had been accounted as at 31.12.2015. As analyzed in the 31.12.2015 Annual Financial Report (note 7) Alpha Bank A.E. has recorded that provision within the context of the implementation of the updated restructuring plan and its relevant commitments. During 2016, it was decided to utilize a part of the relevant provision in the context of consensual separation scheme.
During the first quarter, Alpha Bank Cyprus prepared a voluntary separation scheme, aiming to achieve substantial benefit in operational costs. The Group recognized during the first quarter a provision of amount 31 million for the expected cost, which has been used during the second quarter for the compensations. The final cost amounted to 31.6 million.



EQUITY
16. Share capital and Retained earnings

a) Share capital 
On 30.9.2016 the Bank's share capital amounts to 461,064,360, divided to 1,536,881,200 shares, out of which:
i) 1,367,706,054 ordinary, registered, voting, non-paper shares of nominal value of 0.30 each.
ii) 169,175,146 ordinary, registered, voting, pursuant to restrictions of the article 7a of Law 3864/2010, non paper shares owned by the Hellenic Financial Stability Fund of nominal value of 0.30 each.
b) Retained earnings 
Since 2015 there were no distributable profits, in accordance with article 44a of Codified Law 2190/1920, the Ordinary General Meeting of Shareholders on 30.6.2016 decided the non-distribution of dividends to ordinary shareholders of the Bank.

17. Hybrid securities

30.9.2016
31.12.2015
Perpetual with 1st call option on 18.2.2015 and annually
15,232
15,232
Securities held by Group companies
(100)
- 
Total
15,132
15,232


ADDITIONAL INFORMATION
18. Contingent liabilities and commitments

a) Legal issues
The Group, in the ordinary course of business, is a defendant in claims from customers and other legal proceedings. According to the estimations of the Legal Department, the ultimate settlement of these matters is not expected to have a material effect on the financial position or the operations of the Group. The Group on 30.9.2016 has recorded a provision for pending legal cases amounting to 35.2 million which is included in "Provisions" in Balance Sheet.
b) Tax issues
Alpha Bank has been audited by the tax authorities for the years up to and including 2009. For the years 2011 up to 2015 it has obtained a tax certificate with no qualifications. Former Emporiki Bank has been audited by the tax authorities for the years up to and including 2008. For the years 2011 up to 2013 it has obtained a tax certificate with no qualifications.
The Bank's branches in London and Bulgaria have
been audited by the tax authorities for the years 2013 and 2015 respectively. Emporiki Bank's Cyprus branch has not been audited by the tax authorities since the commencement of its operations (year 2011), until its deletion from Department of Registrar of companies of Cyprus (August 2015), meanwhile it has ceased its operations from September of 2014.
On 2.6.2015, the merger via absorption of Diners Club of Greece A.E.P.P was completed. Diners Club of Greece A.E.P.P. has been audited by the tax authorities for the years up to and including 2010. For the years 2011 up to 2013 it has obtained a tax certificate with no qualifications.
Additional taxes and penalties may be imposed for the unaudited years due to the fact that some expenses may not be recognized as deductible by the tax authorities.
The Group's subsidiaries have been audited by the tax authorities up to and including the year indicated in the table below:

Name
Year
Banks

1. Alpha Bank London Ltd (voluntary settlement of tax obligation)
2013
2. Alpha Bank Cyprus Ltd (tax audit is in progress for years from 2008 - 2011)
2007
3. Alpha Bank Romania S.A.
2006
4. Alpha Bank A.D. Skopje (the company was transferred on 10.5.2016)
2009
5. Alpha Bank Srbija A.D.
2004
6. Alpha Bank Albania SH.A.
2011
Leasing companies

1. Alpha Leasing A.E. **( tax audit is in progress for years from 2008 -2010)
2007
2. Alpha Leasing Romania IFN S.A.
2007
3. ABC Factors A.E.** (tax audit is in progress for year 2010) 
2009
Investment Banking

1. Alpha Finance A.E.P... **/***
2009
2. SSIF Alpha Finance Romania S.A. 
2002
3. Alpha .. Investment Holdings **/***
2009
4. Alpha .. Ventures Capital Management - S **/***
2009
5. Emporiki Ventures Capital Developed Markets Ltd
2007
6. Emporiki Ventures Capital Emerging Markets Ltd
2008
Asset Management

1. Alpha Asset Management ..D... **/***
2009
2. ABL Independent Financial Advisers Ltd (voluntary settlement of tax obligation)
2013
Insurance

1. Alpha Insurance Brokers .. **/***
2009
2. Alpha Insurance Brokers S.R.L.
2005
3. Alphalife A.A.E.Z. **/***
2009
** These companies received tax certificate for the years 2011, 2012, 2013, 2014 and 2015 without any qualification (note 5)
*** These companies have been audited by the tax authorities up to 2009 in accordance with Law 3888/2010 which relates to voluntary settlement for the unaudited tax years.


Name
Year
Real estate and hotel

 1. Alpha Astika Akinita ..**
2009
 2. Ionian Hotel Enterprises A.E. ** (tax audit is in progress for the year 2011)
2010
 3. Oceanos ..... **/***
2009
 4. Emporiki Development and Real Estate Management ..
2008
 5. Alpha Real Estate D.O.O. Beograd
2008
 6. Alpha Astika Akinita D.O.O.E.L. Skopje
2005
 7. Alpha Real Estate Bulgaria E.O.O.D. (commencement of operation 2007)
*
 8. Chardash Trading E.O.O.D. (commencement of operation 2006)
*
 9. Alpha Real Estate Services S.R.L. (commencement of operation 1998)
*
10. Alpha Investment Property Chalandriou .. (commencement of operation 2012)
* *
11. Alpha Investment Property Attikis . (commencement of operation 2012)
* *
12. Alpha Investment Property Attikis .. (commencement of operation 2012)
* *
13. Alpha Investment Property Amarousion .. (commencement of operation 2012)
* *
14. Alpha Investment Property Amarousion I .. (commencement of operation 2012)
* *
15. AGI-RRE Participations 1 S.R.L. (commencement of operation 2010)
*
16. AGI-BRE Participations 1 E.O.O.D. (commencement of operation 2012)
*
17. Stockfort Ltd (commencement of operation 2010)
*
18. Romfelt Real Estate S.A. (commencement of operation 1991)
*
19. AGI-RRE Zeus S.R.L. (commencement of operation 2012)
*
20. AGI-RRE Athena S.R.L. (commencement of operation 2012)
*
21. AGI-RRE Poseidon S.R.L. (commencement of operation 2012)
*
22. AGI-RRE Hera S.R.L. (commencement of operation 2012)
*
23. AGI-BRE Participations 2 E.O.O.D. (commencement of operation 2012)
*
24. AGI-BRE Participations 2BG E.O.O.D. (commencement of operation 2012)
*
25. AGI-BRE Participations 3 E.O.O.D. (commencement of operation 2012)
*
26. AGI-BRE Participations 4 E.O.O.D. (commencement of operation 2012)
*
27. APE Fixed Assets A.E.**/***
2009
28. SC Cordia Residence S.R.L.
2011
29. HT-1 E.O.O.D (commencement of operation 2013)
*
30. AGI-RRE Venus S.R.L. (commencement of operation 2014)
*
31. AGI-RRE Cleopatra S.R.L. (commencement of operation 2014)
*
32. AGI-RRE Hermes S.R.L. (commencement of operation 2014)
*
33. SC Carmel Residential S.R.L. (commencement of operation 2013)
*
34. Alpha Investment Property Neas Kifissias .. (commencement of operation 2014)
*
35. Alpha Investment Property Kallirois .. (commencement of operation 2014)
*
36. Alpha Investment Property Livadias .. (commencement of operation 2014)
*
37. AGI-SRE Ariadni D.O.O. (commencement of operation 2015)
*
38. Alpha Investment Property Kefalariou .. (commencement of operation 2015)
*
39. Alpha Investment Property Neas Erythreas .. (commencement of operation 2015)
*
40. Alpha Investment Property Chanion .. (former Anaplasis Plagias ..)
*
41. Asmita Gardens S.R.L.
2010
42. Ashtrom Residents S.R.L. (commencement of operation 2006)
*
43. Cubic Center Development S.A. (commencement of operation 2010)
*
44. AGI-BRE Participations 5 E.O.O.D. (commencement of operation 2015)
*
45. AGI-SRE Participations 1 D.O.O. (commencement of operation 2016)
*
Special purpose and holding entities

 1. Alpha Credit Group Plc (voluntary settlement of tax obligation) 
2013
 2. Alpha Group Jersey Ltd 
****
 3. Alpha Group Investments Ltd (commencement of operation 2006) 
*
* These companies have not been audited by the tax authorities since the commencement of their operations.
** These companies received tax certificate for the years 2011, 2012, 2013, 2014 and 2015 without any qualification (note 5).
*** These companies have been audited by the tax authorities up to and including 2009 in accordance with Law 3888/2010 which relates to voluntary settlement for the unaudited tax years.
**** These companies are not subject to a tax audit


Name
Year
 4. Ionian Holdings ..**/***
2009
 5. Ionian Equity Participations Ltd (commencement of operation 2006) 
*
 6. Emporiki Group Finance Plc (voluntary settlement of tax obligation)
2013
 7. AGI-BRE Participations 1 Ltd (commencement of operation 2009) 
*
 8. AGI-RRE Participations 1 Ltd (commencement of operation 2009) 
*
 9. Alpha Group Ltd (commencement of operation 2012) 
*
10. Katanalotika Plc (voluntary settlement of tax obligation) 
2013
11. Epihiro Plc (voluntary settlement of tax obligation) 
2013
12. Irida Plc (voluntary settlement of tax obligation) 
2013
13. Pisti 2010-1 Plc (voluntary settlement of tax obligation) 
2013
14. Alpha Shipping Finance Ltd (commencement of operation 2014) 
*
15. AGI-RRE Athena Ltd (commencement of operation 2011) 
*
16. AGI-RRE Poseidon Ltd (commencement of operation 2012) 
*
17. AGI-RRE Hera Ltd (commencement of operation 2012) 
*
18. Umera Ltd (commencement of operation 2012) 
*
19. AGI-BRE Participations 2 Ltd (commencement of operation 2011) 
*
20. AGI-BRE Participations 3 Ltd (commencement of operation 2011) 
*
21. AGI-BRE Participations 4 Ltd (commencement of operation 2010) 
*
22. Alpha Real Estate Services Ltd (commencement of operation 2010) 
*
23. AGI-RRE Ares Ltd (commencement of operation 2010) 
*
24. AGI-RRE Venus Ltd (commencement of operation 2012) 
*
25. AGI-RRE Artemis Ltd (commencement of operation 2012) 
*
26. AGI-BRE Participations 5 Ltd (commencement of operation 2012) 
*
27. AGI-RRE Cleopatra Ltd (commencement of operation 2013)
*
28. AGI-RRE Hermes Ltd (commencement of operation 2013)
*
29. AGI-Cypre Arsinoe Ltd (commencement of operation 2013)
*
30. AGI-SRE Ariadni Ltd (commencement of operation 2014)
*
31. Zerelda Ltd (commencement of operation 2012)
*
32. AGI-Cypre Alaminos Ltd (commencement of operation 2014)
*
33. AGI-Cypre Tochni Ltd (commencement of operation 2014)
*
34. AGI-Cypre Evagoras Ltd (commencement of operation 2014)
*
35. AGI-Cypre Tersefanou Ltd (commencement of operation 2014)
*
36. AGI-Cypre Mazotos Ltd (commencement of operation 2014)
*
37. AGI-Cypre Ermis Ltd (commencement of operation 2014)
*
38. AGI-SRE Participations 1 Ltd (commencement of operation 2016)
*
Other companies

1. Alpha Bank London Nominees Ltd
****
2. Alpha Trustees Ltd (commencement of operation 2002)
*
3. Flagbright Ltd
****
4. Kafe Alpha A.E.**/***
2009
5. Alpha Supporting Services ..**/*** (tax audit is in progress for the year 2012)
2009
6. Real Car Rental A.E.**/***
2009
7. Evisak ..**/***
2009
8. Emporiki Management ..***
2009
9. Alpha Bank Notification Services .. (commencement of operation 2015)
*
* These companies have not been audited by the tax authorities since the commencement of their operations.
** These companies received tax certificate for the years 2011, 2012, 2013, 2014 and 2015 without any qualification (note 5).
*** These companies have been audited by the tax authorities up to and including 2009 in accordance with Law 3888/2010 which relates to voluntary settlement for the unaudited tax years.
**** These companies are not subject to a tax audit


c) Operating leases
The Group's minimum future lease payments are:

30.9.2016
31.12.2015
- less than one year
42,946
43,930
- between one and five years
108,244
112,402
- over five years
156,488
164,421
Total
307,678
320,753
The minimum future lease fees are:

30.9.2016
31.12.2015
- less than one year
11,381
10,423
- between one and five years
45,606
41,694
- over five years
50,316
46,474
Total
107,303
98,591
d) Off balance sheet liabilities

The Group pursuant to its normal operations, is bound by contractual commitments, that in the future may result to changes in its asset structure. These commitments are moni-tored in off balance sheet accounts and relate to letters of credit, letters of guarantee, undrawn credit facilities and credit limits. 
Letters of credit are used to facilitate trading activities and relate to the financing of contractual agreements for the transfer of goods domestically or abroad, by undertaking the direct payment on behalf of the third party bound by the agreement on behalf of the Group's client. Letters of credit, as well as letters of guarantee, are commitments under specific terms and are issued by the Group for the purpose of ensuring that its clients will fulfill the terms of their contractual obligations.

The outstanding balances are as follows:

30.9.2016
31.12.2015
Letters of credit
35,557
35,159
Letters of guarantee and other guarantees
3,632,725
3,940,146

In addition, contingent liabilities for the Group arise from undrawn loan agreements and credit limits that may not be fulfilled immediately or may be partly fulfilled as long as the agreed upon requirements are fulfilled by counterparties.
The liability from limits that can not be recalled (committed) in case where counterparties fail to meet their contractual obligations as at 30.9.2016 amounts to 402.2 million (31.12.2015: 278.9 million) and are included in the calculation of risk weighted assets.

e) Assets pledged

Assets pledged, as at 30.9.2016 are analyzed as follows:
 Deposits pledged amounting to 0.9 billion concerning the Group's obligation to maintain deposits in Central Banks according to ratios determined in the respective country.
 Deposits pledged amounting to 0.2 billion concerning guarantees provided on behalf of the Greek State.
 Deposits pledged to credit institutions amounting to 1.3 billion which have been provided as guarantee for derivative transactions.
 Deposits pledged to credit institutions amounting to 0.05 billion which have been provided for Letter of Credit or Guarantee Letters issued by the Bank in order to facilitate clients' imports.
 Deposits of 3 million were pledged to the Resolution Fund as irrevocable payment commitment of a part of 2016 contribution. The commitment has to be fully secured by cash as decided by the Single Resolution Board.
  Due from banks of 7 million pledged to Central Banks in order to participate in the main refinancing operations.
 Loans and advances to customers:
i. amount of nominal value of 21.7 billion pledged to Central Banks for liquidity purposes. 
ii. a carrying amount of 3.2 billion, which relates to corporate, consumer loans, leasing and credit cards, has been securitized for the issuance of Special Purpose Entities' bonds of a nominal value of 4.2 billion, which are held by the Bank and pledged to Central Banks for liquidity purposes. 
iii. a carrying amount of 0.6 billion, which relates to shipping loans, has been securitized for the purpose of financing the Bank through a Special Purpose Entitiy, which amounts to 0.3 billion at 30.9.2016.
iv. an amount of nominal value of 0.1 billion has been pledged for other loan facilities.
 Securities held for trading and investment securities portfolio:
i. an amount of nominal value of 3.62 billion of Greek Government securities, of which a nominal amount of 3.52 billion has been pledged to Central Banks for liquidity purposes, an amount of 0.03 billion has been given as collateral for other loan facilities, while a nominal amount of 0.07 billion has been given as collateral for repurchase transactions (repo). In addition, a nominal amount of 0.03 billion refers to Greek government securities received as collateral for reverse repo and have been pledged to Central Banks for liquidity purposes.
ii. an amount of nominal value of 3.05 billion relates to securities issued by the European Financial Stability Facility (EFSF), received from the Bank by the HFSF in the context of: a) its participation to the share capital increase that was completed on 6.6.2013, and, b) due to the coverage of the difference between the values of assets and liabilities transferred from Cooperative Banks, is pledged as collateral to Central Banks for participation in main refinancing operations.
iii. an amount of 0.36 billion of other corporate securities has been given as a collateral of the repurchase transactions (repo).
In addition an amount of nominal value of 2.75 billion that relates to securities issued under the guarantee of the Greek State in accordance with Law 3723/2008 and are held by the Bank, a) out of which an amount of 2.29 billion has been pledged as collateral to Central Banks for raising liquidity purposes and b) an amount of 0.46 billion has been given as collateral for repurchase transactions (repo).



19. Group Consolidated Companies
The consolidated financial statements, apart from the parent company Alpha Bank include the following entities:
. Subsidiaries
Name 
Country
Group's ownership interest %
30.9.2016
31.12.2015
Banks



 1. Alpha Bank London Ltd
United Kingdom
100.00
100.00
 2. Alpha Bank Cyprus Ltd
Cyprus
100.00
100.00
 3. Alpha Bank Romania S.A.
Romania
99.92
99.92
 4. Alpha Bank A.D. Skopje (26i)
FYROM

100.00
 5. Alpha Bank Srbija A.D. (28a)
Serbia
100.00
100.00
 6. Alpha Bank Albania SH.A. 
Albania
100.00
100.00
Leasing Companies



 1. Alpha Leasing A.E.
Greece
100.00
100.00
 2. Alpha Leasing Romania IFN S.A.
Romania
100.00
100.00
 3. ABC Factors A.E.
Greece
100.00
100.00
Investment Banking



 1. Alpha Finance A.E.P...
Greece
100.00
100.00
 2. SSIF Alpha Finance Romania S.A.
Romania
100.00
100.00
 3. Alpha .. Investment Holdings
Greece
100.00
100.00
 4. Alpha A.E. Ventures Capital Management - S
Greece
100.00
100.00
 5. Emporiki Ventures Capital Developed Markets Ltd
Cyprus
100.00
100.00
 6. Emporiki Ventures Capital Emerging Markets Ltd
Cyprus
100.00
100.00
Asset Management



 1. Alpha Asset Management ..D...
Greece
100.00
100.00
 2. ABL Independent Financial Advisers Ltd
United Kingdom
100.00
100.00
Insurance



 1. Alpha Insurance Agents ..
Greece
100.00
100.00
 2. Alpha Insurance Brokers S.R.L.
Romania
100.00
100.00
 3. Alphalife A.A.E.Z.
Greece
100.00
100.00
Real estate and hotel



 1. Alpha Astika Akinita .. (26v, 28b)
Greece
93.17
93.17
 2. Ionian Hotel Enterprises A.E. (26u, 28c )
Greece
97.27
97.27
 3. Oceanos ..... (26u)
Greece
100.00
100.00
 4. Emporiki Development and Real Estate Management ..
Greece
100.00
100.00
 5. Alpha Real Estate D.O.O. Beograd
Serbia
93.17
93.17
 6. Alpha Astika Akinita D.O.O.E.L. Skopje (28b)
FYROM
93.17
93.17
 7. Alpha Real Estate Bulgaria E.O.O.D.
Bulgaria
93.17
93.17
 8. Chardash Trading E.O.O.D.
Bulgaria
93.17
93.17
 9. Alpha Real Estate Services S.R.L.
Romania
93.17
93.17
10. Alpha Investment Property Chalandriou .(26d)
Greece
100.00
100.00
11. Alpha Investment Property Attikis ..
Greece
100.00
100.00
12. Alpha Investment Property Attikis II ..
Greece
100.00
100.00
13. Alpha Investment Property Amarousion .. (26d)
Greece
100.00
100.00
14. Alpha Investment Property Amarousion .. (26d)
Greece
100.00
100.00
15. AGI-RRE Participations 1 S.R.L.
Romania
100.00
100.00
16. AGI-BRE Participations 1 E.O.O.D.
Bulgaria
100.00
100.00
17. Stockfort Ltd 
Cyprus
100.00
100.00
18. Romfelt Real Estate S.A.
Romania
98.86
98.86


Name 
Country
Group's ownership interest %
30.9.2016
31.12.2015
19. AGI-RRE Zeus S.R.L.
Romania
100.00
100.00
20. AGI - RRE Athena S.R.L. 
Romania
100.00
100.00
21. AGI - RRE Poseidon S.R.L. 
Romania
100.00
100.00
22. AGI - RRE Hera S.R.L. 
Romania
100.00
100.00
23. AGI-BRE Participations 2 E.O.O.D. 
Bulgaria
100.00
100.00
24. AGI-BRE Participations 2BG E.O.O.D. 
Bulgaria
100.00
100.00
25. AGI-BRE Participations 3 E.O.O.D. 
Bulgaria
100.00
100.00
26. AGI-BRE Participations 4 E.O.O.D. 
Bulgaria
100.00
100.00
27. APE Fixed Assets .. (26w)
Greece
72.20
72.20
28. SC Cordia Residence S.R.L. 
Romania
100.00
100.00
29. -1 E.O.O.D. 
Bulgaria
100.00
100.00
30. AGI-RRE Venus S.R.L. *
Romania
100.00
100.00
31. AGI-RRE Cleopatra S.R.L.
Romania
100.00
100.00
32. AGI-RRE Hermes S.R.L. *
Romania
100.00
100.00
33. SC Carmel Residential S.R.L.
Romania
100.00
100.00
34. Alpha Investment Property Neas Kifisias .. (26d)
Greece
100.00
100.00
35. Alpha Investment Property Kallirois .. (26d)
Greece
100.00
100.00
36. Alpha Investment Property Livadias ..
Greece
100.00
100.00
37. AGI-SRE Ariadni D.O.O.
Serbia
100.00
100.00
38. Asmita Gardens S.R.L. (26l)
Romania
100.00
100.00
39. Alpha Investment Property Kefalariou ..
Greece
100.00
100.00
40. Ashtrom Residents S.R.L.
Romania
100.00
100.00
41. AGI-BRE Participations 5 E.O.O.D. *
Bulgaria
100.00
100.00
42. Cubic Center Development S.A.
Romania
100.00
100.00
43. Alpha Investment Property Neas Erythreas ..
Greece
100.00
100.00
44. Alpha Investment Property Chanion .. (former Anaplasis
 Plagias ..)
Greece
100.00
100.00
45. AGI-SRE Participations 1 D.O.O. (26m)
Serbia
100.00

Special purpose and holding entities



 1. Alpha Credit Group Plc
United Kingdom
100.00
100.00
 2. Alpha Group Jersey Ltd
Jersey
100.00
100.00
 3. Alpha Group Investments Ltd (26c, 26d, 26h, 26j, 26s, 26u, 26v)
Cyprus
100.00
100.00
 4. Ionian Holdings .. (26u)
Greece
100.00
100.00
 5. Ionian Equity Participations Ltd (26u)
Cyprus
100.00
100.00
 6. Emporiki Group Finance Plc
United Kingdom
100.00
100.00
 7. AGI - BRE Participations 1 Ltd
Cyprus
100.00
100.00
 8. AGI - RRE Participations 1 Ltd (26l)
Cyprus
100.00
100.00
 9. Alpha Group Ltd 
Cyprus
100.00
100.00
10. Katanalotika Plc
United Kingdom


11. Epihiro Plc
United Kingdom


12. Irida Plc
United Kingdom


13. Pisti 2010-1 Plc
United Kingdom


14. Alpha Shipping Finance Ltd 
United Kingdom


15. AGI - RRE Athena Ltd 
Cyprus
100.00
100.00
16. AGI - RRE Poseidon Ltd
Cyprus
100.00
100.00
17. AGI - RRE Hera Ltd 
Cyprus
100.00
100.00
18. Umera Ltd 
Cyprus
100.00
100.00
19. AGI-BRE Participations 2 Ltd 
Cyprus
100.00
100.00
* The companies have not economic activity.


Name 
Country
Group's ownership interest %
30.9.2016
31.12.2015
20. AGI-BRE Participations 3 Ltd 
Cyprus
100.00
100.00
21. AGI-BRE Participations 4 Ltd 
Cyprus
100.00
100.00
22. Alpha Real Estate Services Ltd (26v)
Cyprus
100.00
100.00
23. AGI-RRE Ares Ltd
Cyprus
100.00
100.00
24. AGI-RRE Venus Ltd
Cyprus
100.00
100.00
25. AGI-RRE Artemis Ltd
Cyprus
100.00
100.00
26. AGI-BRE Participations 5 Ltd
Cyprus
100.00
100.00
27. AGI-RRE Cleopatra Ltd
Cyprus
100.00
100.00
28. AGI-RRE Hermes Ltd
Cyprus
100.00
100.00
29. AGI-RRE Arsinoe Ltd
Cyprus
100.00
100.00
30. AGI-SRE Ariadni Ltd
Cyprus
100.00
100.00
31. Zerelda Ltd 
Cyprus
100.00
100.00
32. AGI-Cypre Alaminos Ltd (26n)
Cyprus
100.00
100.00
33. AGI-Cypre Tochni Ltd (26p)
Cyprus
100.00
100.00
34. AGI-Cypre Evagoras Ltd
Cyprus
100.00
100.00
35. AGI-Cypre Tersefanou Ltd
Cyprus
100.00
100.00
36. AGI-Cypre Mazotos Ltd (26o)
Cyprus
100.00
100.00
37. AGI-Cypre Ermis Ltd (26n, 26o, 26p)
Cyprus
100.00
100.00
38. AGI-SRE Participations 1 Ltd (26h, 26m)
Cyprus
100.00

Other companies



1. Alpha Bank London Nominees Ltd
United Kingdom
100.00
100.00
2. Alpha Trustees Ltd
Cyprus
100.00
100.00
3. Kafe Alpha A.E.
Greece
100.00
100.00
4. Alpha Supporting Services .. (26u)
Greece
100.00
100.00
5. Real Car Rental A.E. 
Greece
100.00
100.00
6. Evisak ..
Greece
85.71
85.71
7. Emporiki Management ..
Greece
100.00
100.00
8. Alpha Bank Notification Services ..
Greece
100.00
100.00

Within the third quarter of 2016 the sale of subsidiary company Alpha Astika kinita D.O.O.E.L. Skopje was decided. The transaction was finalized in October, within two months after the relevant decision (note 28). The subsidiary has not been classified as "Asset held for sale" in the Financial Statements as at 30.9.2016 due to the immaterial balances and impact from the sale at Group level.

b. Joint ventures
1. APE Commercial Property ..
Greece
72.20
72.20
2. APE Investment Property A.E.
Greece
72.80
72.80
3. Alpha ...S. (26b, 26t)
Greece
51.00
51.00
4. Rosequeens Properties Ltd. 
Cyprus
33.33
33.33
5. Aktua Hellas Holdings .. (26a, 26e, 26g, 26r)
Greece
45.00


APE Investment Property is the parent entity of a Group, in which the subsidiaries SYMET A.E., Astakos Terminal A.E., Akarport A.E. and NA.VI.PE A.E. are included. Furthemore, Rosequeens Properties Ltd. and Aktua Hellas Holdings A.E are parent entities of groups with subsidiaries the companies Rosequeens S.R.L. and Aktua Greece Financial Solutions A.E. respectively. The Group accounts for the aforementioned groups under the equity method based on their consolidated data.



c. Associates
1. AEDEP Thessalias and Stereas Ellados 
Greece
50.00
50.00
2. A.L.C. Novelle Investments Ltd
Cyprus
33.33
33.33
3. Banking Information Systems ..
Greece
23.77
23.77
4. Propindex ..D..
Greece
35.58
35.58
5. Olganos .. 
Greece
30.44
30.44

It is noted that since 2015, the Bank following the related loans restructuring agreements with the companies, SELONDA A.E.G.E. and NIREUS A.E.G.E., owns 21.97% and 20.72% of their shares, respectively. The Bank intends to transfer these companies in the near future and as a result these companies were classified in Balance Sheet caption "Assets held for sale" at their fair value, which was determined in the amount of 1.
In addition, on 29.7.2016 the Bank's subsidiary, Alpha Group Investments Ltd, acquired the 50% of shares of the company Alpha Investment Property Eleona A.E., which was valued with the equity method.
Subsidiaries are fully consolidated, while joint ventures and associates are accounted under the equity method, in accordance with IAS 28 "Investments in associates and joint ventures" and IFRS 11 "Joint Arrangements".
Consolidated financial statements do not include Commercial Bank of London Ltd which is a dormant company and Smelter Medical Systems A.E., Aris-Diomidis Emporiki A.E., Metek A.E., Flagbird Ltd which have been fully impaired and are in the process of liquidation. The Group hedges the foreign exchange risk arising from the net investment in subsidiaries through the use of derivatives in their functional currency.

20. Operating segment 
(Amounts in million of Euro)

1.1 - 30.9.2016

Retail Banking
Corporate Banking
Asset Management/Insurance
Investment Banking/ Treasury
South-Eastern Europe
Other
Total
Net interest income
754.7
515.0
11.0
(46.6)
217.1
2.5
1,453.7
Net fee and commission income
83.5
101.0
25.9
6.2
23.9
0.9
241.4
Other income
5.0
9.2
(1.5)
21.0
36.3
41.9
111.9
Total income
843.2
625.2
35.4
(19.4)
277.3
45.3
1,807.0
Total expenses
(493.4)
(113.8)
(19.9)
(21.9)
(159.2)
(51.5)
(859.7)
Impairment losses
(330.7)
(409.4)


(121.9)

(862.0)
Provision for Voluntary Separation Scheme




(31.6)

(31.6)
Profit/(loss) before income tax
19.1
102.0
15.5
(41.3)
(35.4)
(6.2)
53.7
Income tax






(32.5)
Profit/(loss) after income tax from continuing operations






21.2
Profit/(loss) from discontinued operations




1.0

1.0
Profit/(loss) after income tax






22.2
Assets
25,088.3
15,112.6
458.3
11,289.7
9,183.2
5,029.0
66,161.1
Liabilities
22,411.3
5,074.8
1,447.0
22,135.0
5,982.0
165.0
57,215.1


(Amounts in million of Euro)

1.1 - 30.9.2015

Retail Banking
Corporate Banking
Asset Management/Insurance
Investment Banking/ Treasury
South-Eastern Europe
Other
Total
Net interest income
760.2
539.4
12.2
(102.9)
235.5
0.8
1,445.2
Net fee and commission income
78.4
98.4
34.6
(5.2)
23.8
0.7
230.7
Other income
3.6
9.3
(0.6)
51.7
(1.7)
19.5
81.8
Total income
842.2
647.1
46.2
(56.4)
257.6
21.0
1,757.7
Total expenses
(494.5)
(108.8)
(23.3)
(22.5)
(159.5)
(62.8)
(871.4)
Impairment losses
(1,259.5)
(914.7)


(183.1)

(2,357.3)
Profit/(loss) before income tax
(911.8)
(376.4)
22.9
(78.9)
(85.0)
(41.8)
(1,471.1)
Income tax






723.2
Profit/(loss) after income tax from continuing operations






(747.9)
Profit/(loss) from discontinued operations




(90.5)

(90.5)
Profit/(loss) after income tax






(838.4)
Assets 31.12.2015
25,189.1
16,711.1
483.5
11,943.3
9,808.8
5,161.7
69,297.5
Liabilities 31.12.2015
22,417.8
4,827.8
1,359.0
25,038.3
6,309.0
292.4
60,244.3

i. Retail Banking
Includes all individuals (retail banking customers), professionals, small and very small companies operating in Greece and abroad excluding countries in South Eastern Europe.
The Group, through its extended branch network, offers all types of deposit products (deposits/ savings accounts, working capital/ current accounts, investment facilities/ term deposits, Repos, Swaps), loan facilities (mortgages, consumer, corporate loans, letters of guarantee) and debit and credit cards of the above customers.
ii. Corporate Banking
Includes all medium-sized and large companies, with international activities, corporations with international business activities, corporations managed by the Corporate Banking Division and shipping corporations operating in Greece and on abroad except from South Eastern European countries. The Group offers working capital facilities, corporate loans, and letters of guarantee of the abovementioned corporations. This sector also includes leasing products which are provided by the subsidiary company Alpha Leasing A.E. as well as factoring services which are provided by the subsidiary company ABC Factors A.E..
iii. Asset Management/Insurance
Consists of a wide range of asset management services offered through Group's private banking units and its subsidiary, Alpha Asset Management A.E.D.A.K. In addition, it includes income received from the sale of a wide range of insurance products to individuals and companies through either AXA Insurance, which is the corporate successor of the subsidiary Alpha Insurance A.E. or the subsidiary Alphalife A.A.E.Z..
iv. Investment Banking/Treasury
Includes stock exchange, advisory and brokerage services related to capital markets, and also investment banking facilities, which are offered either by the Bank or specialized subsidiaries (Alpha Finance A.E.P.E.Y., Alpha Ventures S.A.). It also includes the activities of the Dealing Room in the interbank market (FX Swaps, Bonds, Futures, IRS, Interbank placements - Loans etc.).
v. South-Eastern Europe
Consists of the Group's subsidiaries, which operate in South-Eastern Europe. It is noted that Bulgaria's Branch and Alpha Bank's subsidiary Alpha Bank A.D. Skopje, are not included anymore in the results of the continuing activities in this sector. Their financial result is included in the category "Profit/Loss from discontinued operations".
vi. Other
This segment consists of the non-financial subsidiaries of the Group and Bank's income and expenses that are not related to its operating activity.



21. Exposure in credit risk from debt issued by the peripheral Eurozone countries
Due to the prolonged turmoil in the Eurozone countries and the issues which the Greek economy faces, concerning the service of public debt, the Group monitors the credit risk from its exposure to the Greek State as well as the remaining peripheral Eurozone countries.
i. Exposure to the Greek State 
The table below presents the Group's total exposure in Greek Government securities:

30.9.2016
31.12.2015
Portofolio 
Nominal value
Carrying amount
Nominal value
Carrying amount
Available for sale
4,254,345
3,537,502
4,659,672
3,930,081
Trading
3,140
2,349
2,783
1,888
Total
4,257,485
3,539,851
4,662,455
3,931,969
All Greek Government securities are classified in Level 1 based on the quality of inputs used for the estimation of their fair value.
In addition the public entities securities on 30.9.2016 amounted to 165.8 million (31.12.2015: 162.1 million).
The Group's exposure to Greek State from other financial instruments, excluding securities and loans and advances is depicted in the table below:
On balance sheet exposure 

30.9.2016
31.12.2015

Carrying amount
Carrying amount
Derivative financial instruments - assets
402,419
362,700
Derivative financial instruments - liabilities
(128,501)
(271,711)

Derivative financial assets from public sector entities/organizations amounted to 5.2 million on 30.9.2016 (31.12.2015: 16.6 million liabilities). The Group's exposure in loans granted to public sector entities/ organizations on 30.9.2016 amounted to 1,117 million (31.12.2015: 1,297.6 million). The Group for the above receivables has recognized impairment amounted to 50.5 million on 30.9.2016 (31.12.2015: 42.1 million). In addition, the balance of Group's loans guaranteed by the Greek State (directly guaranteed by Greek government, loans guaranteed by TEMPME, loans guaranteed by Common Ministerial Decisions) on 30.9.2016 amounted to 719.6 million (31.12.2015: 764 million). For these loans the Group has recognized impairment amounted to 149.6 million as at 30.9.2016 (31.12.2015: 149 million).

Off balance sheet exposure

30.9.2016
31.12.2015

Nominal value 
Fair value
Nominal value 
Fair value
Greek Government Treasury bills used as collaterals for refinancing operation
56,373
56,023


ii. Exposure to other peripheral Eurozone countries debt

The Group holds in its available for sale portfolio, bonds and treasury bills of the Republic of Cyprus with a book value of 122.2 million (31.12.2015: 96.9 million), bonds issued by the Italian Republic with a book value of 10.1 million (31.12.2015: 6.9 million) and bonds issued by the Spanish Republic with a book value of 11.2 million (31.12.2015: 8 million).
The Group as at 30.9.2016 had no exposures to bonds issued by Portugal and Ireland.

22. Disclosures relevant to the fair value of financial instruments 
Fair value of financial instruments measured at amortized cost

30.9.2016
31.12.2015

Fair value 
Carrying amount
Fair value
Carrying amount
Financial Assets




Loans and advances to customers
44,660,421
44,870,376
46,107,498
46,186,116
Investment securities




- Held to maturity
40,728
44,801
78,934
79,709
- Loans and receivables
3,449,832
3,371,258
4,364,715
4,289,482
Financial Liabilities




Due to customers
31,944,146
31,969,757
31,422,161
31,434,266
Debt securities in issue *
280,041
286,164
365,018
376,129

The table above presents the fair value and the carrying amount of financial instruments which are measured at amortized cost.
The fair value of loans is estimated based on the interbank market yield curves by adding a liquidity premium and spread per loan category and business unit for the expected loss. The fair value of deposits is estimated based on the interbank market yield curves by deducting customer's spread depending on the type of deposit. In both of these cases, the future cash flows (floating rate) are calculated based on the implied forward rates until their maturity.
The fair value of held to maturity securities and of debt securities in issue is calculated using market prices, as long as the market is active. In all other cases as well as for the loans and receivables portfolio, the discounted cash flows method is used and all significant variables are based either on observable market data or on a combination of observable and unobservable market data.
The fair value of other financial assets and liabilities which are recorded at amortized cost does not differ materially from the respective carrying amount.

* Debt securities in issue do not include the convertible bond loan issued by the Bank in the context of the agreement with Credit Agricole S.A. regarding the acquisition of Emporiki Bank since this security is measured at fair value.


Hierarchy of financial instruments measured at fair value

30.9.2016

Level 1
Level 2
Level 3
Total
Fair value
Derivative Financial Assets
3,995
779,832
5,218
789,045
Securities held for trading




- Bonds and Treasury bills
2,449


2,449
- Shares 
1,587


1,587
- Other variable yield securities




Available for sale securities




- Bonds and Treasury bills
4,648,052
577,214
16,838
5,242,104
- Shares
121,948
18,066
48,656
188,670
- Other variable yield securities
34,819


34,819
Derivative financial liabilities
1
1,622,751

1,622,752
Convertible bond loan


13,560
13,560

31.12.2015

Level 1
Level 2
Level 3
Total
Fair value
Derivative Financial Assets
6,665
782,820
3,530
793,015
Securities held for trading




- Bonds and Treasury bills
1,888


1,888
- Shares 
891


891
- Other variable yield securities




Available for sale securities




- Bonds and Treasury bills
4,927,352
625,704
19,460
5,572,516
- Shares
143,815

43,337
187,152
- Other variable yield securities
34,816


34,816
Derivative financial liabilities
21
1,550,508

1,550,529
Convertible bond loan


24,600
24,600

The tables above present the fair value of financial instruments which are measured at fair value in hierarchy levels based on inputs used for the fair value measurement.
Securities traded in an active market and exchange-traded derivatives are classified as Level 1.
The available for sale securities whose fair value is calculated based on non-binding market prices provided by dealers-brokers or on the application of the income approach methodology using interest rates and credit spreads which are observable in the market, are classified as Level 2. 
Level 3 classifications include securities whose fair value is estimated using significant unobservable inputs.
The fair value of non listed shares, as well as shares not traded in an active market is determined based on the estimations made by the Group which relate to the future profitability of the issuer after taking into account the expected growth rate of its operations, as well as the weighted average rate of capital return which is used as a discount rate. Given that the above parameters are mainly non observable, the valuation of these shares is classified as Level 3. For the valuation of over the counter derivatives income approach methodologies are used: discounted cash flow models, option-pricing models or other widely accepted valuation models. Valuations are checked on a daily basis with the respective prices of the counterparty banks in the context of the daily process of provision of collaterals and settlement of derivatives. If the non-observable inputs are significant, the fair value that arises is classified into Level 3 or otherwise in Level 2.
Finally, the valuation of the convertible bond loan was based on the estimated share price at the maturity date of the bond, as reflected in the Group's business plan, which is non-observable market parameter. 
The Group recognizes the transfer between fair value hierarchy Levels at the end of each period.
Within the period, Greek corporate bonds of 214.4 million were transferred from Level 2 to Level 1 due to the satisfaction of the criteria of active market. In addition, within the period, 112.2 million of Greek corporate bonds were transferred from Level 1 to Level 2, as the liquidity margin (bid-ask spread) moved above the limit set for the characterization of market as active.
The table below presents the valuation methods used for the measurement of Level 3 fair value:


30.9.2016

Total Fair Value
Fair Value
Valuation Method
Significant non-observable inputs
Derivative Financial Assets
5,218
5,156
Discounted cash flows with interest rates ,taking into account the credit risk 
The probability of default and the loss in the case of default of the counterparty (BCVA adjustment) is calculated with the use of an internal model
62
Discounted cash flows with interest rates being the underlying instrument
Assessment of reserve adequacy for payment of hybrid securities' dividends
Available for sale bonds
16,838
16,838
Based on issuer price/Discounted cash flows estimating credit risk 
Issuer's price/ Credit spread
Available for sale shares
48,656
48,656
Discounted cash flows/ Multiples valuation method/ Net assets method
Future profitability of the issuer
Convertible bond loan
13,560
13,560
Discounted cash flows - Multiples valuation method
Estimated market price of the issuer

31.12.2015

Total Fair Value
Fair Value
Valuation Method
Significant non-observable inputs
Derivative Financial Assets
3,530
3,185
Discounted cash flows with interest rates ,taking into account credit risk of the counterparty
The probability of default and the loss in the case of default of the counterparty (BCVA adjustment) is calculated with an internal model
345
Discounted cash flows with interest rates
Assessment of the adequacy of reserves for the payment of hybrid securities dividends
Available for sale bonds
19,460
19,460
Based on issuer price 
Price
Available for sale shares
43,337
43,337
Discounted cash flows/ Multiples valuation method 
Future profitability of the issuer 
Convertible bond loan
24,600
24,600
Discounted cash flows/ Multiples valuation method
Estimated market price of the issuer


A reconciliation for the movement of financial instruments measured at fair value in Level 3 is depicted below.

30.9.2016

Assets
Liabilities

Available for sale securities
Derivative Financial Assets
Derivative
Financial Liabilities
Convertible
Bond Loan
Opening balance 1.1.2016
62,797
3,530

(24,600)
Total gain or loss recognized in the income statement
(820)
(470)

11,040
Total gain or loss recognized directly in equity
1,635 



Purchases/issues
420



Sales/repayments/settlements
(2,444)
(356)


Transfers to Level 3 from Level 1
4,838 



Transfers to Level 3 from Level 2

3,671 


Transfers from Level 3 to level 1
(932)



Transfers from Level 3 to level 2

(1,157)


Balance 30.9.2016
65,494
5,218
- 
(13,560)
Amounts included in the income statement and relate to financial instruments included in the balance sheet at the end of the reporting period 1.1-30.9.2016
(749)
(462)

11,040 

Within the period 4.8 million of shares were transferred from Level 1 to Level 3 as non-observable data were used for their valuation and 0.9 million of shares were transferred from Level 3 to Level 1 as for their valuation observable data has been used.
Regarding derivative financial assets there was a transfer from Level 2 to Level 3 as of 30.6.2016, since the probability of default and the loss given default of the counterparty which has been incorporated in the valuation (BCVA adjustment) was significant. On 30.9.2016 the above parameter was not significant at the fair value of derivatives and therefore have been transferred to Level 2.




31.12.2015

Assets
Liabilities

Available for sale securities
Derivative Financial Assets
Derivative
Financial Liabilities
Convertible
Bond Loan
Opening balance 1.1.2015
76,453

(5,393)

Changes for the period 1.1 - 30.9.2015




Total gain or loss recognized in the income statement
(3,830)
(58)
5,373 

Total gain or loss recognized directly in equity
(1,012)



Purchases/Issues
9,355 



Sales/Repayments/Settlements
(13,843)

20 

Transfers to Level 3 from Level 2
11 
5,849 


Balance 30.9.2015
67,134
5,791
-

Changes for the period 1.10 - 31.12.2015




Total gain or loss recognized in the income statement
(5,936)
2,624 


Total gain or loss recognized directly in equity
(1,671)



Purchases/Issues
5,000 



Sales/Repayments/Settlements
(1,730)



Transfers to Level 3 from Level 2

(4,885)

(24,600)
Balance 31.12.2015
62,797 
3,530 
- 
(24,600)
Amounts included in the income statement and relate to financial instruments included in the balance sheet at the end of the reporting period 1.1 - 30.9.2015
(2,389)
(58)



During 2015, corporate bonds amounting to 11.3 million as well as other securities amounting to 3 million that were classified in Level 3 were purchased, since non- observable parameters were used for valuation purposes. In addition, sales-repayments of foreign corporate bonds amounting to 6.4 million and other securities amounting 9.2 million took place. Regarding derivative financial assets, a transfer from Level 2 to Level 3 occurred since the use of non-observable inputs was significant. Finally within 2015 the convertible bond loan was transferred from Level 2 to Level 3 as a different valuation method was applied.



Sensitivity analysis for Level 3 financial instruments that their valuation was based on significant non-observable data is presenting in the following table:

Significant non-observable inputs
Significant non-observable inputs change
Total effect in income statement
Total effect in Equity

Favourable Variation
Unfavourable Variation
Favourable Variation
Unfavourable Variation
Derivative Financial Assets
The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model
Increase the probability of default through reduction of internal ratings by 2 scales/ Increase the loss given default by 10%

(914)

(914)
Assessment of the adequacy of reserves for the payment of hybrid securities dividends
Increase the probability of dividend payments to 100%

(43)

(43)
Available for sale bonds
Issuer Price/ Credit spread
Variation +/- 10%


697 
(758)
Available for sale shares
Future profitability of the Issuer
Variation +/- 10% in P/B and EV/Sales ratios (multiples valuation method)

(39)
1,364 
(1,364)
Convertible bond Loan
Estimated market price of the issuer
Alpha Bank share price in the range of 1.5-2.5
3,333 
(3,485)
3,333 
(3,485)
Total


3,333 
(4,481)
5,394 
(6,564)


23. Capital adequacy

The Group's policy is to maintain a robust capital base to safeguard the Bank's development and retain the trust of depositors, shareholders, markets and business partners. Share capital increases are performed after Shareholders' General Meeting or Board of Directors' decisions in accordance with the articles of association or the relevant laws. Treasury shares are allowed to be purchased based on the terms and conditions of law. The capital adequacy is supervised by Single Supervising Mechanism of ECB, to which reports are submitted on quarterly basis. The minimum requirements (regarding ordinary shares, Tier I ratio and the capital adequacy ratio of the Bank) are stipulated by Bank of Greece Governor's Acts. The capital adequacy ratio compares regulatory capital with the risks assumed by the Bank (risk-weighted assets). Regulatory capital includes Tier I capital (share capital, reserves and non-controlling interests), additional Tier I capital (hybrid securities) and Tier II capital (subordinated debt). Risk-weighted assets include the credit risk of the investment portfolio, the market risk of the trading portfolio and operational risk. Since January 1, 2014 EU Directive 2013/36/EU of the European Parliament and European Council dated 26 June 2013 incorporated in Greek Law through the Law 4261/2014 along with the EU Regulation 575/2013/EU, dated 26 June 2013 "CRD IV" came into force, along which gradually introduce the new capital adequacy framework (Basel III) for credit institutions. According to the above regulatory framework, for the calculation of capital adequacy ratio the effective transitional arrangements are followed.
Moreover:
 besides the 8% Capital Adequacy limit, there are limits of 4.5% for Common Equity ratio and 6% for Tier I ratio, and
 is required the maintenance of capital buffers additional to the Common Equity Capital, from 1.1.2016 and gradually until 31.12.2019.
In particular:
 from 1.1.2016 a capital buffer of 0.625% exists which will gradually rise to 2.5% on 31.12.2019.
 The Bank of Greece through the acts issued by the Executive Committee settled the following capital buffers:
- Countercyclical capital buffer rate for the first nine months of 2016, "zero percent" (Act 55/18.12.2015, 83/18.3.2016, 97/16.6.2016 & 103/6.9.2016)
- Other systemically important institutions (O-SII) buffer for 2016 "zero percent" (Act 56/18.12.2015).
These limits should be met both on a standalone and on a consolidated basis.


30.9.2016 (estimated)
31.12.2015* (restated)
31.12.2015 (published)
Common Equity Tier I
16.8%
16.6%
16.7%
Tier I
16.8%
16.6%
16.7%
Capital adequacy ratio
16.9%
16.8%
16.7%
* The change of 10 basis points in 31.12.2015 capital adequacy ratio is due to the final calculation of the risk weighted assets against operational risk which became final after the publication of the 2015 Annual Financial Report.


24. Related-party transactions
The Bank and the Group companies enter into a number of transactions with related parties in the normal course of business. These transactions are performed at arms length and are approved by the Bank's committees.
a. The outstanding balances of the Group's transactions with key management personnel, consisting of members of the Bank's Board of Directors and the Bank's Executive Committee, their close family members and the entities controlled by them, as well as, the results related to those transactions are as follows:

30.9.2016
31.12.2015
Assets


Loans and advances to customers
1,739
11,460
Liabilities


Due to customers
12,056
26,200
Employee defined benefit obligations
223
453 
Total
12,279
26,653
Letters of guarantee and approved limits
1,500
11,689

From 1 January to

30.9.2016
30.9.2015
Income


Interest and similar income
69
216
Fee and commission income
73
105
Total
142
321
Expenses


Interest expense and similar charges
40
147
Fees paid to key management and close family members
2,604
2,502
Total
2,644
2,649
b. The outstanding balances with the Bank's subsidiaries, joint ventures and associated as well as the results related to these transactions are as follows:

30.9.2016
31.12.2015
Assets


Loans and advances to customers
209,802
161,890
Derivative financial asses
375
527
Total
210,177
162,417
Liabilities


Due to customers
22,037
21,494

From 1 January to

30.9.2016
30.9.2015
Income


Interest and similar income 
4,473
4,277
Fee and commission income
3
3
Other income
174
568
Total
4,650
4,848
Expenses


Interest expense and similar charges
115
208
Other expenses
1,939
1,682
Total
2,054
1,890


c. The under liquidation Supplementary Fund maintains deposits with the Bank amounting to 1,077 (31.12.2015: 4,590). Periods' Interest expense related to deposits amounts to 17. In 30.9.2016 the Supplementary Fund does not own Alpha Bank's shares (31.12.2015: 114).

d. The Hellenic Financial Stability Fund (HFSF) exercises significant influence on the Bank. In particular, according to Law 3864/2010 and the Relationship Framework Agreement("RFA") as of 23.11.2015, which replaced the previous of 2013, HFSF has representation in the Board of Directors and in other significant Committees of the Bank. Therefore, according to IAS 24, HFSF and its related entities are considered related parties for the Bank.

The outstanding balances and the results related to these transactions are analyzed as follows:

From 1 January to

30.9.2016
30.9.2015
Income 


Fee and commission income
8
45
25. Current assets held for sale and discontinued operations

The Bank, under the approved by the European Committee Restructuring Plan (note 42 of the Consolidated Financial Statements as of 31.12.2015) and the fulfillment of the relevant commitment relating to the deleveraging of part of the assets of its international activities, proceeded to the sale of the operations of the Bulgaria Branch and Alpha Bank A.D. Skopje as well as it began the process for the sale of Ionian Hotel Enterprises A.E., APE Fixed Assets A.E., APE Commercial Property A.E. and APE Investment Property A.E..

Bank's branch in Bulgaria

On 17.7.2015, the Bank and Eurobank, issued a joint statement announcing their agreement, in main terms, for the transfer of operations of the Bulgaria branch to Eurobank's subsidiary in Bulgaria (PostBank). On 6.11.2015 the Bank and Postbank signed the relevant contract, finalizing the terms of the transfer which include a transfer price of 1 Euro and a partial undertaking of Branch's debt obligations by the buyer. The transfer was completed on 1.3.2016. 
From 30.6.2015 the assets of Bulgaria Branch, and its directly related liabilities, meet the qualification requirements as "Held for sale" in accordance with IFRS 5, as at that date the management had decided to sell the unit and was already in the process of negotiations with the prospective buyer. In addition, Bulgaria Branch is considered a separate geographical area of operations for the Group which is included in the Southeast Europe for information purposes per operating segment. After the classification of the Bulgaria Branch, which is the only company in the banking sector whereby the Group operates in Bulgaria, as asset held for sale, its activities are classified as "discontinued operations" by the Group.
Therefore, for the purpose of preparation of the Group's interim financial statements, the Group valued the assets and liabilities of Bulgarian Branch at the lowest price between the book value and fair value less selling costs recognizing the difference amounted to 89,007 as loss in the income statement in the line "Net profit/(loss) after income tax from discontinued operations". After the valuation, assets of Bulgarian Branch amounted to 387,947 on 31.12.2015 and liabilities to 277,675.
During 2016 the Group adjusted the loss from sale of Bulgaria branch based on the net assets on the day of the transfer.



Income Statement and Statement of Comprehensive Income
The results and cash flows arising from Bulgaria Branch are presented as "discontinued operations" in the Income Statement with a corresponding restatement of comparative periods 1.1.2015 to 30.9.2015 and 1.7.2015 to 30.9.2015 and in the Statement of Cash Flows with a corresponding restatement of comparative period 1.1.2015 to 30.9.2015. 
(Amounts in thousands of Euro)

From 1 January to
From 1 July to

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Interest and similar income
3,123
17,863

4,860
Interest expense and similar charges
(556)
(4,957)

(2,187)
Net interest income
2,567
12,906
- 
2,673





Fee and commission income
842
4,955

1,679
Commission expense
(74)
(305)

(105)
Net fee and commission income
768
4,650
- 
1,574





Dividend income

2

2
Gains less losses on financial transactions
64
431

154
Other income
79
288

100
Total income
3,478
18,277
- 
4,503
Staff costs
(1,575)
(7,458)

(2,403)
General administrative expenses
(2,042)
(9,377)

(1,419)
Depreciation 
(397)
(2,164)

(690)
Other expenses
(30)
(19)

(1)
Total expenses
(4,044)
(19,018)
- 
(4,513)
Impairment losses and provisions to cover credit risk
1,563 
(3,437)

(973)
Profit/(loss) before income tax
997 
(4,178)
- 
(983)
Income tax




Profit/(loss) after income tax
997 
(4,178)
- 
(983)
Difference due to valuaton at fair value 

(85,500)


Loss from the disposal after income tax
(748)

(560)

Net Profit/ (loss) from discontinued operations after income tax
249 
(89,678)
(560)
(983)
The amount of cash and cash equivalent of the Bulgaria Branch, which was transferred at the disposal, amounted to 9,942. 
Alpha Bank A.D. Skopje

The Bank, during the fourth quarter of 2015, began the process of selling its subsidiary Alpha Bank A.D. Skopje (ABS). ABS is the smallest subsidiary of the Group in the Balkans and it has a small presence in the local market in Skopje (market share <2%). As part of this process, investors, which were shortlisted from a broader investor list, were invited to submit their bids on the acquisition of the 100% of the ABS shares and on the 100% of the hybrid instrument (subordinated loan) which were allocated to the ABS from the parent company (both of them were combined with the "Perimeter Transaction"). The disposal was completed on 10.5.2016 for a total amount of 3.2 million.
On 31.12.2015 the Bank's participation in the subsidiary and the hybrid instrument satisfied the conditions for classification as "held for sale" in accordance with IFRS 5, while its operations, which represent a distinct geographical area of operations for the Group that is part of the South-Eastern Europe sector for reporting purposes per operational segment, have been characterized as "Discontinued operations".
Therefore, for the preparation of 31.12.2015 consolidated financial statements the participation in the subsidiary company was valued at the lower of book and fair value less cost of sale, recognizing the difference amounted to 14,414 as a loss in the income statement in "Net profit / (loss) after income tax from discontinued operations". The fair value was determined based on the financial bids which were received from the potential investors for the Perimeter of the Transaction and the Bank's estimate for the final price. After the above valuation, the assets of Alpha Bank A.D. Skopje on 31.12.2015 are amounted to 84,470 and its liabilities to 80,714.
Within 2016, the Group adjusted the result from the sale of the subsidiary by 1,535, based on its net asset value as of the transaction date.

Income Statement and Statement of Comprehensive Income

The results and cash flows arising from Alpha Bank A.D. Skopje are presented as "discontinued operations" in the Income Statement and the Statement of Comprehensive Income with a corresponding restatement of comparative periods 1.1.2015 to 30.9.2015 and 1.7.2015 to 30.9.2015 and in the Cash Flow Statement with a restatement of comparative period 1.1.2015 to 30.9.2015. 
The following table analyzes the amounts presented in the Statement of Comprehensive Income.

(Amounts in thousands of Euro)

From 1 January to 
From 1 July to 

30.9.2016
30.9.2015
30.9.2016
30.9.2015
Interest and similar income
1,525
3,569

1,185
Interest expense and similar charges
(382)
(759)

(229)
Net interest income
1,143
2,810
- 
956





Fee and commission income
404
834

277
Commission expense
(183)
(423)

(153)
Net fee and commission income
221
411
- 
124





Dividend income

15


Gains less losses on financial transactions
132
354

63
Other income
40
86

38
Total income
1,536
3,676
- 
1,181
Staff costs
(907)
(2,061)

(691)
General administrative expenses
(691)
(1,643)

(486)
Depreciation 
(134)
(308)

(99)
Other expenses
(80)
(160)

- 
Total expenses
(1,812)
(4,172)
- 
(1,276)
Impairment losses and provisions to cover the credit risk
(482)
(423)

(240)
Profit/(loss) before income tax
(758)
(919)
- 
(335)
Income tax
21
111

40
Profit/(loss) after income tax
(737)
(808)
- 
(295)
Gain from the disposal after income tax
1,535 



Net Profit /(loss) after income tax, from discontinued operations
798 
(808)
- 
(295)
Exchange differences on translating and hedging the net investment in foreign operations
(40)
3 

(36)
Amounts that may be reclassified in the Income Statement from discontinued operations
(40)
3 

(36)
Total comprehensive income for the period after income tax
758 
(805)
- 
(331)
The amount of cash and cash equivalent of Alpha Bank A.D. Skopje, which was transferred at the disposal, amounted to 10,973.


Ionian Hotel Enterprises ..

On 27.10.2016, the Group, following the intention announcement of 17.2.2016 to sell Ionian Hotel Enterprises .. through an Invitation for Expressions of Interest, has concluded a definitive agreement for the sale of its subsidiary. The total transaction consideration, including the refinancing of the existing debt of IHE (67 million), amounts to 142 million and is subject to a customary adjustment mechanism as at the day of completion. The completion of the transaction is subject to approval by the Hellenic Competition Commission and is expected to take place within 2016.
From 31.12.2015 the assets of the company and the related liabilities meet the criteria to be classified as "held for sale" in accordance with IFRS 5. In addition, according to IFRS 5 the Group proceed with an estimation of the fair value of Ionian Hotel Enterprises A.E. assets and liabilities. Assets of Ionian Hotel Enterprises A.E. as at 30.9.2016 amount to 148,972 (31.12.2015: 185,701) and its liabilities amount to 9,265 (31.12.2015: 8,392). 
Taking into account that the company is not a separate major line of business for the Group, the criteria to be characterized as 'discontinued operations' are not met. The company is included in "Other" in operating segment analysis.
The table below presents the analysis of assets and the liabilities of Ionian Hotel Enterprises A.E., after intercompany eliminations.

(Amounts in thousands of Euro)

30.9.2016
31.12.2015
ASSETS


Cash and balances with Central Banks
61 
85 
Due from banks
4 
112 
Loans and advances to customers
1,788 
1,122 
Property, plant and equipment
169,738 
168,777 
Goodwill and other intangible assets
276 
302 
Deferred tax assets
13,685 
13,692 
Other assets
1,336 
1,611 

186,888 
185,701 
Valuation at fair value
(37,916)

Assets held for sale
148,972 
185,701 
LIABILITIES


Liabilities to current income tax and other taxes
690 
314 
Defined benefit obligations
2,245 
2,294 
Other liabilities
6,276 
5,730 
Provisions 
54 
54 
Total liabilities related to assets held for sale
9,265 
8,392 


APE Fixed Assets , APE Commercial Property , APE Investment Property 

Sale consultants were engaged in June of the current year and the liquidation procedure of the Bank's participations in APE Fixed Assets A.E., APE Commercial Property A.E. and APE Investment Property A.E. began. APE Fixed Assets A.E. is Bank's subsidiary, while APE Commercial Property A.E. and APE Investment Property A.E. are joint ventures, where the control is exercised jointly by the Bank and the other shareholder. 
From 30.6.2016 the above mentioned investments meet the requirements to be classified as "Held for sale" in accordance with IFRS 5, as on that date the Management had decided their sale, had initiated an active programme to find buyer and the sale is expected to be completed within one year. 
According to IFRS 5 the assets held for sale or disposal groups are valued at the lower of book and fair value less cost of sale and they are presented in the Balance Sheet separately from other assets and liabilities. As regards the subsidiary APE Fixed Assets A.E. the Group proceeded to the measurement of the fair value of the assets and liabilities which consolidates, while as regards the joint ventures APE Commercial Property A.E. and APE Investment Property A.E., which are consolidated with the equity method, the Group measured the fair value of its participation and of loans and receivables which constitute part of the net investment in them. From the above mentioned measurement on 30.9.2016 losses amounting to 2 million arose which were recognized in caption "Gains less losses on financial transactions" in the Income Statement. 
Taking into account that the companies are not a separate major line of business for the Group, the criteria to be characterized as 'discontinued operations' are not met. The companies are included in "Other" in operating segment analysis. 
In the table below an analysis of the specific assets regarding APE Fixed Assets A.E., APE Commercial Property A.E. and APE Investment Property A.E. which are presented in the Balance Sheet as assets held for sale is depicted.

(Amounts in thousands of Euro)

30.9.2016
Asset

Investment property
39,872 
Loans and advances to customers
47,570 
Investments in associates and joint ventures
39,244 
Other assets held for sale
126,686 
Liabilities

Liabilities of current income tax and other taxes
66 
Deferred tax liabilities
298 
Total liabilities related to assets held for sale
364 
Amounts recognized directly in equity for held for sale items
(122)
Non-controlling interests for held for sale items
10,994 
Other asset held for sale

Assets held for sale include also other fixed assets held for sale of the Group of an amount of  5 million (31.12.2015:  4.9 million) thereby total amount of Assets held for sale of the Group as at 30.9.2016 amounts to  280,618 (31.12.2015:  663,063). 
In addition, the Bank's participations to the companies "SELONDA A.E.G.E." and "NIREUS A.E.G.E." have been classified to Assets held for sale, since it intends to transfer these companies in the near future at their fair value, which was determined in the amount of  1. 
The Group, at each reporting date, assesses the actions taken within the context of the implementation of the restructuring plan in order assets and liabilities that are directly associated with them to be classified as held for sale when the criteria of IFRS 5 (which are presented in note 1.17 of the 31.12.2015 consolidated financial statements) are met.



26. Corporate events

a. On 26.1.2016 the Bank participated in the establishment of Aktua Hellas Holding S.A., which is based in Greece with a participation of 45% and share capital of 25 thousand.
b. On 2.2.2016 the Bank participated in the share capital increase of the joint venture Alpha TANEO AKES, with an amount of 51 thousand.
c. On 18.2.2016 the Bank participated in the share capital increase of its subsidiary, Alpha Group Investments Ltd with the amount of 57.82 million.
d. On 19.2.2016 the subsidiary of the Bank, Alpha Group Investments Ltd, participated in the share capital increase of Group subsidiaries, AEP Amarousioun I, AEP Amarousion II, AEP Chalandriou, AEP Neas Kifisias and AEP Kallirois for 19.99 million, 13.19 million, 22.64 million, 1 million and 1 million, respectively.
e. On 24.2.2016 the joint venture Aktua Hellas Holding S.A., established the company Aktua Greece Financial Solutions S.A with a share capital of 100 thousand.
f. On 1.3.2016 the transfer of Alpha Bank Bulgaria Branch operations in Eurobank Bulgaria A.D., a subsidiary of Eurobank Ergasias A.E. was completed.
g. On 22.4.2016 the Bank participated in the share capital increase of the joint ventures, Aktua Hellas Holding S.A., with the amount of 45 thousand.
h. On 4.5.2016 the subsidiary of the Group, Alpha Group Investments Ltd, founded the company AGI SRE Participations 1 Ltd, based in Cyprus for an amount of 1 thousand.
i. On 10.5.2016 the sale of all shares of the Bank's subsidiary, Alpha Bank A.D. Skopje was completed.
j. On 13.5.2016 the Bank participated in the share capital increase of its subsidiary, Alpha Group Investments Ltd with the amount of 11.9 million.
k. On 17.5.2016 Alpha Bank, Eurobank and KKR Credit reached an agreement to assign the management of credit and equity exposures to a selected number of Greek companies into a platform managed by Pillarstone.
l. On 23.5.2016 the subsidiary of the Group AGI-RRE Participations 1 Ltd participated in the share capital increase of Group subsidiary Asmita Gardens S.R.L. by contributing 2 million.
m. On 8.6.2016 the subsidiary of the Group, AGI-SRE Participations 1 Ltd, founded the company AGI-SRE Participations 1 D.O.O., based in Serbia, for an amount of 1 thousand.
n. On 9.6.2016 the subsidiary of the Group, AGI-CYPRE Ermis Ltd, proceeded to the acquisition of total number of shares of AGI-CYPRE Alaminos Ltd for the amount of 1.8 thousand.
o. On 16.6.2016 the subsidiary of the Group, AGI-CYPRE Ermis Ltd, proceeded to the acquisition of total number of shares of AGI-CYPRE Mazotos Ltd for the amount of 1.8 thousand.
p. On 16.6.2016 the subsidiary of the Group, AGI-CYPRE Ermis Ltd, proceeded to the acquisition of total number of shares AGI-CYPRE Tochni Ltd for the amount of 1.8 thousand.
q. On 14.7.2016 the Bank, as a result of relative restructuring agreement of the company Dias Aquaculture ABEE, acquired additional shares of Selonda Aquacultures AEGE, from the share capital increase, conducted by contribution in kind of all the assets and part of the liabilities of company Dias Aquaculture .... to the company Selonda Aquacultures AEGE. Therefore, the Bank's share in the latter changed from 23.01% to 21.97%. The Bank, which identified at zero the fair value of the shares acquired, intends to dispose all of its shares of Selonda Aquacultures AEGE in the near future.
r. On 22.7.2016 the Bank covered, proportionally to its share, the increase in the share capital of the joint venture Aktua Hellas Holding S.A., by paying the amount of 570 thousand.
s. On 29.7.2016 the Bank's subsidiary, Alpha Group Investments Ltd, acquired the 50% of shares of the company AEP Eleona, for an amount of 11.9 million.
t. On 2.8.2016, the Bank covered, proportionally to its share, the increase in the share capital of the joint venture Alpha TANEO AKES by paying the amount of 90 thousand.
u. On 22.8.2016 the Bank proceeded to the acquisition of 97.27% of shares of Ionian Hotel Enterprises A.E. from the related companies Alpha Group Investments Ltd, Ionian Equity Participations Ltd, Ionian Holding A.E., Oceanos A.T.O.E.E. and Alpha Supporting Services A.E. by 89.77%, 1.87%, 1.87%, 1.87% and 1.87% respectively in the context of the internal restructuring plan of the portfolio of Group Alpha Bank in order to service the business initiatives and under the agreed with the best practices terms which are followed in similar transactions.
v. On 14.9.2016 the subsidiary of the Alpha Astika Akinita A.E., proceeded to the acquisition from Alpha Group Investments Ltd the total number of shares of Alpha Real Estate Services Ltd for the amount of 11 thousand.
w. On 26.9.2016 the Bank participated in the share capital increase of its subsidiary, APE Fixed Assets A.E. with the amount of 72,2 thousand.



27. Restatement of financial statements

During the current period, the Group modified the way of presentation of figures related to the loyalty Bonus card program. These figures, which up to now were included in other expenses, other income and commissions are now included as a net amount in commission income. This modification is performed in order to reflect better the substance of the reward program. As a result of this change, some figures of the income statement of the comparative period reformed without changing the result, as presented in the following table:


From 1 January to

31.12.2015
30.9.2015
30.6.2015
31.3.2015
Net fee and commission income
(535)
(1,046)
(1,421)
(856)
Other income
(3,523)
(1,838)
(873)
(490)
General administrative expenses
4,058
2,884
2,294
1,346
Total effect 
-
-
-
-

1.10-31.12.2015
1.7-30.9.2015
1.4-30.6.2015
1.1-31.3.2015
Net fee and commission income
511
375
(565)
(856)
Other income
(1,685)
(965)
(383)
(490)
General administrative expenses
1,174
590
948
1,346
Total effect 
-
-
-
-
Moreover the figures of the comparative periods have been restated due to the finalization of the Bulgaria Branch transfer terms and the presentation of Alpha Bank A.D. Skopje as a discontinued operation (note 25). Below are restated statements of income and cash flows for the period 1.1 - 30.9.2015 based on these modifications.


Consolidated Income Statement
(Amounts in thousands of Euro)

From 1 January to 30.9.2015

Published Amounts
Restatements due to changes in the presentation of figures relating to the loyalty Bonus card program
Restatements due to finalization of the Bulgaria Branch transfer terms
Restatements due to presentation of Alpha Bank A.D. Skopje as discontinued operation
Restated amounts
Interest and similar income
2,283,915 

2,524 
(3,569)
2,282,870 
Interest expense and similar charges
(838,431)


759 
(837,672)
Net interest income
1,445,484 

2,524 
(2,810)
1,445,198 






Fee and commission income
286,739
(1,209)

(834)
284,696 
Commission expense
(54,607)
163 

423 
(54,021)
Net fee and commission income
232,132
(1,046)

(411)
230,675






Dividend income
903


(15)
888 
Gains less losses on financial transactions
45,369


(354)
45,015 
Other income
46,833
(1,838)

(86)
44,909 

93,105
(1,838)

(455)
90,812
Total income
1,770,721
(2,884)
2,524 
(3,676)
1,766,685 
Staff costs
(397,261)


2,061 
(395,200)
General administrative expenses
(399,239)
2,884 

1,643 
(394,712)
Depreciation and amortization expenses
(78,207)


308 
(77,899)
Other expenses
(3,775)


160 
(3,615)
Total expenses
(878,482)
2,884 

4,172 
(871,426)
Impairment losses and provisions to cover credit risk
(2,355,918)

(1,838)
423 
(2,357,333)
Share of profit/(loss) of associates and joint ventures
(9,022)



(9,022)
Profit/(Loss) before income tax
(1,472,701)
- 
686 
919 
(1,471,096)
Income tax
723,309 


(111)
723,198 
Net profit/(Loss) after income tax
(749,392)
- 
686 
808 
(747,898)
Net profit/(Loss) after income tax from discontinued activities
(88,992)

(686)
(808)
(90,486)
Net profit/(Loss) after income tax
(838,384)
- 
- 
- 
(838,384)
Profit/(Loss) attributable to:





Equity owners of the Bank





- from continuing activities 
(749,644)

686 
808 
(748,150)
- from discontinued activities
(88,992)

(686)
(808)
(90,486)

(838,636)
- 
- 
- 
(838,636)
Non-controlling interests
252 



252 
Earnings/(losses) per share: 





Basic and diluted earnings/(losses)
( per share):
(0.07)



(3.28)


(Amounts in thousands of Euro)

From 1 July to 30.9.2015

Published Amounts
Restatements due to changes in the presentation of figures relating to the loyalty Bonus card program
Restatements due to finalization of the Bulgaria Branch transfer terms
Restatements due to presentation of Alpha Bank A.D. Skopje as discontinued operation
Restated amounts
Interest and similar income
758,735

881
(1,185)
758,431 
Interest expense and similar charges
(270,356)


229 
(270,127)
Net interest income
488,379

881
(956)
488,304






Fee and commission income
90,871
(409)

(277)
90,185 
Commission expense
(21,611)
784 

153 
(20,674)
Net fee and commission income
69,260
375
- 
(124)
69,511






Dividend income
343



343 
Gains less losses on financial transactions
9,116


(63)
9,053 
Other income
15,336
(965)

(38)
14,333 

24,795
(965)
- 
(101)
23,729 
Total income
582,434
(590)
881
(1,181)
581,544
Staff costs
(132,420)


691 
(131,729)
General administrative expenses
(158,459)
590 

486 
(157,383)
Depreciation and amortization expenses
(26,461)


99 
(26,362)
Other expenses
(1,407)



(1,407)
Total expenses
(318,747)
590 
- 
1,276 
(316,881)
Impairment losses and provisions to cover credit risk
(258,731)


240 
(258,491)
Share of profit/(loss) of associates and joint ventures
(5,035)



(5,035)
Profit/(Loss) before income tax
(79)
- 
881 
335 
1,137 
Income tax
413,880 


(40)
413,840 
Net profit/(Loss) after income tax
413,801 
- 
881 
295 
414,977 
Net profit/(Loss) after income tax from discontinued activities
(102)

(881)
(295)
(1,278)
Net profit/(Loss) after income tax
413,699 
- 
- 
- 
413,699 
Profit/(Loss) attributable to:





Equity owners of the Bank





- from continuing activities 
413,716 

881 
295 
414,892 
- from discontinued activities
(102)

(881)
(295)
(1,278)

413,614 
- 
-
-
413,614 
Non-controlling interests
85



85 
Earnings/(losses) per share: 





Basic and diluted ( per share): 
0.03 



1.62 


Consolidated Statement of Cash Flows 
(Amounts in thousands of Euro)

From 1 January to 30.9.2015

Published Amounts
Restatements due to changes in the presentation of figures relating to the loyalty Bonus card program
Restatements due to presentation of Alpha Bank A.D. Skopje as discontinued operation
Restated amounts
Cash flows from continuing operating activities




Profit/(loss) before income tax
(1,472,701)
686 
919 
(1,471,096)
Adjustments for gain/(losses) before income tax for:




Depreciation/Impairment of fixed assets
44,110 

(178)
43,932 
Amortization/Impairment of intangible assets
34,098 

(131)
33,967 
Impairment losses from loans, provisions and staff leaving indemnity
 2,406,786 
 1,838 
 (660)
 2,407,964 
(Gains)/losses from investing activities
19,853 


19,853 
(Gains)/losses from financing activities
49,611 


49,611 
(Gains)/losses ratio from associates and joint ventures
9,022 


9,022 

1,090,779 
2,524 
(50)
1,093,253 
Net (increase)/decrease in assets relating to continuing operating activities:




Due from banks
1,245,218 

(67)
1,245,151 
Trading securities and derivative financial assets
253,590 

 
253,590 
Loans and advances to customers
(288,919)
(2,524)
(2,263)
(293,706)
Other assets
(31,992)

(87)
(32,079)
Net increase /(decrease) in liabilities relating to continuing operating activities:



- 
Due to banks
10,261,946 

12 
10,261,958 
Derivative financial liabilities
(234,082)


(234,082)
Due to customers
(12,306,043)

14,064 
(12,291,979)
Other liabilities
99,424 

270 
99,694 
Net cash flows from continuing operating activities before taxes
89,921 
- 
11,879 
101,800 
Income taxes and other taxes paid
(46,347)

- 
(46,347)
Net cash flows from continuing operating activities
43,574 
- 
11,879 
55,453 
Net cash flows from discontinued operating activities
12,882 

(11,879)
1,003 
Cash flows from continuing investing activities




Investments in subsidiaries and associates and joint ventures
(12,138)


(12,138)
Acquisitions during the period 
9,151 


9,151 
Income from subsidiary disposal
15,392 


15,392 
Dividends received
903 


903 
Purchases of fixed and intangible assets
(68,501)

46 
(68,455)
Disposals of fixed and intangible assets
10,928 

 
10,928 
Net (increase)/decrease in investement securities
35,369 

(8,524)
26,845 
Net cash flows from continuing investing activities
(8,896)
- 
(8,478)
(17,374)
Net cash flows from discontinued investing activities
(382)

8,478 
8,096 
Cash flows from continuing financing activities




Repayment of debt securities in issue and other borrowed funds
(111,077)

- 
(111,077)
(Purchases)/sales of hybrid securities
(693)

- 
(693)
Net cash flows from continuing financing activities
(111,770)
- 
- 
(111,770)
Effect of exchange rate differences on cash and cash equivalents
8,865 

- 
8,865 
Net increase/(decrease) in cash flows - continuing activities
(68,227)
- 
3,401 
(64,826)
Net increase/(decrease) in cash flows - discontinued activities
12,500 
- 
(3,401)
9,099 
Cash and cash equivalents at the beginning of the period
1,194,244


1,194,244
Cash and cash equivalents at the end of the period
1,138,517


1,138,517



During the second quarter of 2016, the Group completed the valuation of the net assets of Asmita Gardens S.R.L., which was acquired in the second quarter of 2015. The adjustments to the temporary fair values were recognized retrospectively as if the accounting treatment of the acquisition had been completed at the acquisition date. Therefore on 31.12.2015 the figures of the Balance Sheet were modified as depicted below:

Consolidated Balance Sheet
(Amounts in thousands of Euro)

31.12.2015

Published Amounts
Finalization of the accounting treatment of Asmita Gardens S.R.L.
Restated amounts 
Assets



Cash and balances with Central Banks
1,730,327

1,730,327 
Due from banks
1,976,273

1,976,273 
Securities held for trading
2,779

2,779 
Derivative financial assets
793,015

793,015 
Loans and advances to customers
46,186,116

46,186,116 
Investment securities



- Available for sale
5,794,484

5,794,484 
- Held to maturity
79,709

79,709 
- Loans and receivables
4,289,482

4,289,482 
Investments in associates and joint ventures
45,771

45,771 
Investment property
623,662

623,662 
Property, plant and equipment
860,901

860,901 
Goodwill and other intangible assets
342,251
2,900
345,151 
Deferred tax assets
4,398,176

4,398,176 
Other assets
1,510,225
(1,592)
1,508,633 

68,633,171
1,308 
68,634,479 
Assets held for sale
663,063

663,063 
Total Assets
69,296,234
1,308 
69,297,542 
LIABILITIES



Due to banks
25,115,363

25,115,363 
Derivative financial liabilities
1,550,529

1,550,529 
Due to customers (including debt securities in issue)
31,434,266

31,434,266 
Debt securities in issue and other borrowed funds
400,729

400,729 
Liabilities of current income tax and other taxes
38,192

38,192 
Deferred tax liabilities
20,852

20,852 
Employee defined benefit obligations
108,550

108,550 
Other liabilities
910,622
1
910,623 
Provisions
296,014
2,444
298,458 

59,875,117
2,445 
59,877,562 
Total Liabilities related to assets held for sale
366,781

366,781 
Total Liabilities
60,241,898 
2,445 
60,244,343 
EQUITY



Equity attributable to equity owners of the Bank



Share capital
461,064 

461,064 
Share premium
10,790,870 

10,790,870 
Reserves
301,223 
(1,137)
300,086 
Amounts that were recognized in equity and regard assets held for sale
8,834 

8,834 
Retained earnings
(2,546,885)

(2,546,885)

9,015,106
(1,137)
9,013,969 
Non-controlling interests
23,998

23,998 
Hybrid securities
15,232

15,232 
Total Equity
9,054,336 
(1,137)
9,053,199 
Total Liabilities and Equity
69,296,234 
1,308 
69,297,542 


28. Events after the balance sheet date

a. On 6.10.2016 the Bank has obtained one share of the subsidiary bank Alpha Bank Srbija A.D. without any payment, as a result of a donation of the minority shareholder. Therefore, the Bank's stake stood at 100%.
b. On 21.10.2016, the subsidiary of the Group, Alpha Astika Akinita A.E. sold all the shares of the company Alpha Astika Akinita D.O.O.E.L. Skopje for the amount of  775 thousand (note 19).
c. On 27.10.2016 the Group concluded a definitive agreement for the sale of its shares in Ionian Hotel Enterprises S.A. ("IHE"). The definitive agreement was concluded with Home Holdings S.A., a company owned by Tourism Enterprises of Messinia S.A. and D-Marine Investments Holding B.V., for the sale of its majority stake (approximately 97.3%) in the share capital of the Athens Exchange -listed company Ionian Hotel Enterprises S.A. ("IHE"). The completion of the transaction is subject to approval by the Hellenic Competition Commission and is expected to take place within 2016 (note 25).

Athens, 30 November 2016
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE MANAGING DIRECTOR
THE GENERAL MANAGER
AND CHIEF FINANCIAL OFFICER
THE ACCOUNTING
AND TAX MANAGER
VASILEIOS T. RAPANOS
ID No  666242
DEMETRIOS P. MANTZOUNIS
ID No  166670
VASILEIOS E. PSALTIS
ID No  666591
MARIANNA D. ANTONIOU
ID No  694507

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