REG - Alpha Bank A.E. - 3rd Quarter Results <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 3
30/11/2016 16:35
- Part 3: For the preceding part double click ID:nRSd6020Qb
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 E256 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 E4.2 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 E150 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 E11.04 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 E379,265 an amount of E79,541 (31.12.2015: E94,155) 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 E299,724 (31.12.2015: E400,729).
14. Employee defined benefit obligations
The decrease of defined benefit obligations by E 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 E 31.4 million to TAP by offsetting the relevant liability which amounted to E 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 E4.9 million and
other provisions to E130.7 million out of which:
• An amount of E35.2 million relates to pending legal cases.
• An amount of E61.7 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 E31 million for the expected
cost, which has been used during the second quarter for the compensations. The final cost amounted to E31.6 million.
EQUITY
16. Share capital and Retained earnings
a) Share capital
On 30.9.2016 the Bank's share capital amounts to E461,064,360, 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 E0.30 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 E0.30 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 E35.2 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.Ε.Υ. **/*** 2009
2. SSIF Alpha Finance Romania S.A. 2002
3. Alpha Α.Ε. Investment Holdings **/*** 2009
4. Alpha Α.Ε. Ventures Capital Management - ΑΚΕS **/*** 2009
5. Emporiki Ventures Capital Developed Markets Ltd 2007
6. Emporiki Ventures Capital Emerging Markets Ltd 2008
Asset Management
1. Alpha Asset Management Α.Ε.D.Α.Κ. **/*** 2009
2. ABL Independent Financial Advisers Ltd (voluntary settlement of tax obligation) 2013
Insurance
1. Alpha Insurance Brokers Α.Ε. **/*** 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 Α.Ε.** 2009
2. Ionian Hotel Enterprises A.E. ** (tax audit is in progress for the year 2011) 2010
3. Oceanos Α.Τ.Ο.Ε.Ε. **/*** 2009
4. Emporiki Development and Real Estate Management Α.Ε. 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 Α.Ε. (commencement of operation 2012) * *
11. Alpha Investment Property Attikis Α.Ε (commencement of operation 2012) * *
12. Alpha Investment Property Attikis ΙΙΑ.Ε. (commencement of operation 2012) * *
13. Alpha Investment Property Amarousion ΙΑ.Ε. (commencement of operation 2012) * *
14. Alpha Investment Property Amarousion ΙI Α.Ε. (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 Α.Ε. (commencement of operation 2014) *
35. Alpha Investment Property Kallirois Α.Ε. (commencement of operation 2014) *
36. Alpha Investment Property Livadias Α.Ε. (commencement of operation 2014) *
37. AGI-SRE Ariadni D.O.O. (commencement of operation 2015) *
38. Alpha Investment Property Kefalariou Α.Ε. (commencement of operation 2015) *
39. Alpha Investment Property Neas Erythreas Α.Ε. (commencement of operation 2015) *
40. Alpha Investment Property Chanion Α.Ε. (former Anaplasis Plagias Α.Ε.) *
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 Α.Ε.**/*** 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 Α.Ε.**/*** (tax audit is in progress for the year 2012) 2009
6. Real Car Rental A.E.**/*** 2009
7. Evisak Α.Ε.**/*** 2009
8. Emporiki Management Α.Ε.*** 2009
9. Alpha Bank Notification Services Α.Ε. (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 E402.2 million (31.12.2015: E278.9 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 E0.9 billion concerning the Group's obligation to maintain deposits in Central Banks
according to ratios determined in the respective country.
• Deposits pledged amounting to E0.2 billion concerning guarantees provided on behalf of the Greek State.
• Deposits pledged to credit institutions amounting to E1.3 billion which have been provided as guarantee for derivative
transactions.
• Deposits pledged to credit institutions amounting to E0.05 billion which have been provided for Letter of Credit or
Guarantee Letters issued by the Bank in order to facilitate clients' imports.
• Deposits of E3 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 E7 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 E21.7 billion pledged to Central Banks for liquidity purposes.
ii. a carrying amount of E3.2 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 E4.2 billion, which are held by the
Bank and pledged to Central Banks for liquidity purposes.
iii. a carrying amount of E0.6 billion, which relates to shipping loans, has been securitized for the purpose of financing
the Bank through a Special Purpose Entitiy, which amounts to E0.3 billion at 30.9.2016.
iv. an amount of nominal value of E0.1 billion has been pledged for other loan facilities.
• Securities held for trading and investment securities portfolio:
i. an amount of nominal value of E3.62 billion of Greek Government securities, of which a nominal amount of E3.52 billion
has been pledged to Central Banks for liquidity purposes, an amount of E0.03 billion has been given as collateral for other
loan facilities, while a nominal amount of E0.07 billion has been given as collateral for repurchase transactions (repo).
In addition, a nominal amount of E0.03 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 E3.05 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 E0.36 billion of other corporate securities has been given as a collateral of the repurchase transactions
(repo).
In addition an amount of nominal value of E2.75 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 E2.29 billion has been
pledged as collateral to Central Banks for raising liquidity purposes and b) an amount of E0.46 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:
Α. 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.Ε.Υ. Greece 100.00 100.00
2. SSIF Alpha Finance Romania S.A. Romania 100.00 100.00
3. Alpha Α.Ε. Investment Holdings Greece 100.00 100.00
4. Alpha A.E. Ventures Capital Management - ΑΚΕS 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 Α.Ε.D.Α.Κ. Greece 100.00 100.00
2. ABL Independent Financial Advisers Ltd United Kingdom 100.00 100.00
Insurance
1. Alpha Insurance Agents Α.Ε. 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 Α.Ε. (26v, 28b) Greece 93.17 93.17
2. Ionian Hotel Enterprises A.E. (26u, 28c ) Greece 97.27 97.27
3. Oceanos Α.Τ.Ο.Ε.Ε. (26u) Greece 100.00 100.00
4. Emporiki Development and Real Estate Management Α.Ε. 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 Α.Ε(26d) Greece 100.00 100.00
11. Alpha Investment Property Attikis Α.Ε. Greece 100.00 100.00
12. Alpha Investment Property Attikis II Α.Ε. Greece 100.00 100.00
13. Alpha Investment Property Amarousion ΙΑ.Ε. (26d) Greece 100.00 100.00
14. Alpha Investment Property Amarousion ΙΙΑ.Ε. (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 Α.Ε. (26w) Greece 72.20 72.20
28. SC Cordia Residence S.R.L. Romania 100.00 100.00
29. ΗΤ-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 Α.Ε. (26d) Greece 100.00 100.00
35. Alpha Investment Property Kallirois Α.Ε. (26d) Greece 100.00 100.00
36. Alpha Investment Property Livadias Α.Ε. 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 Α.Ε. 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 Α.Ε. Greece 100.00 100.00
44. Alpha Investment Property Chanion Α.Ε. (former Anaplasis Greece 100.00 100.00
Plagias Α.Ε.)
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 Α.Ε. (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 Α.Ε. (26u) Greece 100.00 100.00
5. Real Car Rental A.E. Greece 100.00 100.00
6. Evisak Α.Ε. Greece 85.71 85.71
7. Emporiki Management Α.Ε. Greece 100.00 100.00
8. Alpha Bank Notification Services Α.Ε. Greece 100.00 100.00
Within the third quarter of 2016 the sale of subsidiary company Alpha Astika Αkinita 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 Α.Ε. Greece 72.20 72.20
2. APE Investment Property A.E. Greece 72.80 72.80
3. Alpha ΤΑΝΕΟΑ.Κ.Ε.S. (26b, 26t) Greece 51.00 51.00
4. Rosequeens Properties Ltd. Cyprus 33.33 33.33
5. Aktua Hellas Holdings Α.Ε. (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 Α.Ε. Greece 23.77 23.77
4. Propindex Α.Ε.D.Α. Greece 35.58 35.58
5. Olganos Α.Ε. 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 E1.
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 E165.8 million (31.12.2015: E162.1 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 E5.2 million on 30.9.2016 (31.12.2015:
E16.6 million liabilities). The Group's exposure in loans granted to public sector entities/ organizations on 30.9.2016
amounted to E1,117 million (31.12.2015: E1,297.6 million). The Group for the above receivables has recognized impairment
amounted to E50.5 million on 30.9.2016 (31.12.2015: E42.1 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 E719.6 million (31.12.2015: E764 million). For these loans the Group has
recognized impairment amounted to E149.6 million as at 30.9.2016 (31.12.2015: E149 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 E122.2 million (31.12.2015: E96.9 million), bonds issued by the Italian Republic with a book value of E10.1 million
(31.12.2015: E6.9 million) and bonds issued by the Spanish Republic with a book value of E11.2 million (31.12.2015: E8
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
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