REG - Alpha Bank A.E. - 3rd Quarter Results <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 2
30/11/2016 16:50
- Part 2: For the preceding part double click ID:nRSd6020Qa
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 E 12.25 billion upon completion of the transaction.
ii. The distribution of preferred shares.
iii. The payment of the amount of E 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 E 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 E 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 E 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 E21 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 E3,383,640 (31.12.2015: E3.417.055).
Income tax of comprehensive income recognized directly in Equity
From 1 January to
30.9.2016 30.9.2015
Before income tax Income After Before income tax Income After
tax income tax tax 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 After income tax Before income tax Income After
tax tax 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 E281 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 E24 which derives from
(Purchases)/(Redemptions)/ Sales of hybrid securities. The respective amount for the nine month period of 2015 was E296
(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 E6,261 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 E) 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 E) 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 E) 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: (12,452,570) (12,021,755)
Allowance for impairment losses *
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 E3.75 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 E5 million (note 13). The book
value of mortgage loans provided as coverage for the above mentioned bonds amounted to E16.5 million.
* In addition to the allowance for impairment losses regarding loans and advances to customers, a provision of E4,862
(31.12.2015: E4,713) has been recorded to cover credit risk relating to off-balance sheet items. The total provision
recorded to cover credit risk amounts to E12,457,432 (31.12.2015: E12,026,468).
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 E4 million on 30.9.2016 (31.12.2015: E2.8 million) out of which Greek Government
bonds E2.3 million (31.12.2015: E1.9 million).
ii. Investment securities
a. Available for sale
The available for sale portfolio amounted to E5.5 billion as at 30.9.2016 (31.12.2015: E5.8 billion). These amounts include
securities issued by the Greek State that amount to E3.5 billion as at 30.9.2016 (31.12.2015: E3.9 billion) out of which
E1.7 billion (31.12.2015: E2.1 billion) relate to Greek Government Treasury bills. The Group during the nine month period
of 2016 has recognized impairment losses for shares amounting to E1,724 and for mutual funds amounting to E1,595 which are
included in "Gain less losses on financial transactions".
b. Held to maturity
The held to maturity portfolio amounted to E44.8 million as at 30.9.2016 (31.12.2015: E79.7 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
E3,960,544 received by the Bank as a result of the share capital increase which was completed on 6.6.2013 and a nominal
value of E284,628 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 E905 million, in the context of the PSPP program. The total book
value of these bonds on 30.9.2016 was E3.4 billion (31.12.2015: E4.3 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 E32.3 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 E2.3 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 E2.9 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 E3.6 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 E1.5 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 E5.15 billion while the maturities/redemptions for the same period amounted to E11.62 billion.
The total balance of senior debt securities guaranteed by the Greek State as at 30.9.2016 amounts to E2.75 billion
(31.12.2015: E9.22 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 E5 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
- More to follow, for following part double click ID:nRSd6020QcRecent news on Alpha Services and Holdings SA
See all newsREG - Morgan StanleyEurope - Stabilisation Notice
AnnouncementREG - Morgan StanleyEurope - Stabilisation Notice
AnnouncementREG - Beyond Housing Ltd - Annual Financial Report
AnnouncementREG - Nomura Fin. Prducts - Post Stab Notice- Alpha (NFPE) EUR 500M 27.06.2023
AnnouncementREG - Nomura Fin. Prducts - Stabilisation Notice
Announcement