REG - Alpha Bank A.E. - 3rd Quarter Results <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 4
30/11/2016 16:55
- Part 4: For the preceding part double click ID:nRSd6020Qc
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 TotalFair 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 TotalFair 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 E214.4 million were transferred from Level 2 to Level 1 due to the satisfaction
of the criteria of active market. In addition, within the period, E112.2 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 DerivativeFinancial Liabilities ConvertibleBond 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 E4.8 million of shares were transferred from Level 1 to Level 3 as non-observable data were used for
their valuation and E0.9 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 DerivativeFinancial Liabilities ConvertibleBond 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 E11.3 million as well as other securities amounting to E3 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 E6.4 million and other securities amounting E9.2 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 E1.5-2.5 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 E1,077 (31.12.2015: E4,590).
Periods' Interest expense related to deposits amounts to E17. In 30.9.2016 the Supplementary Fund does not own Alpha Bank's
shares (31.12.2015: E114).
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 E89,007 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 E387,947 on 31.12.2015 and
liabilities to E277,675.
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 E9,942.
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 E3.2 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 E14,414 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 E84,470 and its liabilities to E80,714.
Within 2016, the Group adjusted the result from the sale of the subsidiary by E1,535, 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
E10,973.
Ionian Hotel Enterprises Α.Ε.
On 27.10.2016, the Group, following the intention announcement of 17.2.2016 to sell Ionian Hotel Enterprises Α.Ε. 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 (E67 million), amounts to E142 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
E148,972 (31.12.2015: E185,701) and its liabilities amount to E9,265 (31.12.2015: E8,392).
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 ΑΕ, APE Commercial Property ΑΕ, APE Investment Property ΑΕ
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
E2 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 E 5 million (31.12.2015: E
4.9 million) thereby total amount of Assets held for sale of the Group as at 30.9.2016 amounts to E 280,618 (31.12.2015: E
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 E 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 E25 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
E51 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 E57.82 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 E19.99
million, E13.19 million, E22.64 million, E1 million and E1 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 E100 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 E45 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 E1 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 E11.9 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 E2 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 E1 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 E1.8 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 E1.8 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 E1.8 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 Α.Β.Ε.Ε. 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 E570 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 E11.9 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 E90 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 E11 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 E72,2 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
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