REG - Alpha Bank A.E. - Half-year Report <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 10
31/08/2017 18:16
- Part 10: For the preceding part double click ID:nRSe5112Pi
AE and APE Investment Property AE are joint ventures, where the control is exercised jointly by the
Bank and other shareholder.
From 30.6.2016 the abovementioned investments meet the requirements to be classified as "held for sale" in accordance with
IFRS 5. The Bank discusses with potential investors who have expressed their interest to acquire respective these
investments, and it considers that the sale is expected to be completed in the near future. Hence, the aforementioned
investments are continue to be presented as "assets held for sale".
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. The Bank proceeded to the
measurement of the fair value of the participation as well as of loans and receivables from these companies which consist a
part of its net investment.
From the abovementioned measurement during the prior year, a loss amounting to E 51.2 million was recorded in the caption
"Gains less losses on financial transactions" in the Income Statement, as the fair value of "held for sale" assets was
below their carrying amount.
In the table below an analysis of the specific assets regarding APE Fixed Assets AE, APE Commercial Property AE and APE
Investment Property AE which are presented in the Balance Sheet as assets held for sale, is depicted.
30.6.2017 31.12.2016
Loans and advances to customers 47,570 47,570
Investments in subsidiaries, associates and joint ventures 48,500 48,500
Total assets held for sale 96,070 96,070
Investment in subsidiary Ionian Hotel Enterprises A.E.
On 22.8.2016 the Bank acquired the 97,27% of shares of Ionian Hotel Enterprises A.E. from the related companies of Alpha
Group Investments Ltd, Ionian Equity Participations Ltd, Ionian Holdings Α.Ε., Oceanos Α.Τ.Ο.Ε.Ε. και Alpha Supporting
Systems Α.Ε. by 89,77%, 1,87%, 1,87%, 1,87% and 1,87% respectively. Given that the requirements of IFRS 5 met following the
announcement on 17.2.2016 for its intention to sell the company through aninvitation for expressions of interest, the
participation has been classified as "held for sale". Within this framework, the Bank signed on 27.10.2016 the final sale
agreement for the subsidiary, and its sale was completed on 16.12.2016. The final price of the transaction, including the
refinancing of the existing debt of the subsidiary ( E 67.2 million), amounted to E 143.3 million.
In addition, following the sale agreement, the Bank acquired the option to invest E 5.2 million and receive in return
preference shares issued by the subsidiary or shares of the company that will emerge following the merger of the subsidiary
with the buyer. The issuance of preference shares will be accompanied by sale/purchase option contracts between the Bank
and the buyer's shareholders. Τhis option enables the Bank to collect an additional amount depending on the evolution of
the company's and therefore represents a contingent consideration. This option was recognized in the caption of "other
assets" at fair value which was E 4.5 million as at 31.12.2016.
The outcome from the sale of Ionian Hotel Enterprises SA was a loss of E 34,986 and it was recorded in the caption "gains
less losses on financial transactions".
Investment in subsidiary Alpha Bank Srbija A.D.
In the fourth quarter of 2016, the Bank initiated the procedures in order to sell its subsidiary Alpha Bank Srbija A.D. In
this context, on 30.1.2017, the Bank agreed with a potential buyer, to sell all the shares owned. On 11.4.2017 the transfer
of all shares of the company was completed for a total price of E 53 million. In addition to the transfer of all shares of
the subsidiary, the agreement includes the assignment of a subordinated debt contract, which amounts to E 27.11 million and
was granted to the subsidiary by the Bank.
Based on the above, on 31.12.2016 the participation of the Bank to the subsidiary and the subordinated debt loan met the
criteria set under IFRS 5 to be classified as "Assets held for sale". Consequently, for the purpose of the preparation of
financial statements for the year ended 31.12.2016, the Bank valued the subsidiary's assets and liabilities at the lower of
carrying amount and fair value less cost to sell, amounting to E 50,561 recognizing a loss of E 82 million in the caption
"Gains less losses on financial transactions".
The final sale price was not different from the calculated fair value.
In addition, the Bank has classified its participation in Selonda A.E.G.E. and Nireus A.E. to "Assets held for sale" since
its intention is to dispose them in the near future. The estimated fair value of the companies is one Euro.
The Bank, for the purpose of the preparation of its financial statements, evaluates the undertaken actions in the context
of its restructuring plan, in order to classify, where applicable based on IFRS 5, the assets and its related liabilities
to held for sale (presented in note 1.16 of the financial statements as at 31.12.2016).
27. Corporate events
a. On 16.1.2017 the Bank participated in the share capital increase of its subsidiary, Alphalife Α.Α.Ε.Ζ with the amount of
E 25 million.
b. On 24.1.2017 the Group's Joint Venture Aktua Hellas Holding SA., was renamed to Cepal Holdings SA.
c. On 30.1.2017 the Bank reached an agreement with the Serbian MK Group for the entire disposal of shares (100%) of its
investment in the share capital of Alpha Bank Srbija A.D.
d. On 23.2.2017 following the exercise of the option of conversion from the total bondholders, the Bank participated in the
capital increase due to the conversion of the convertible bond issue of 1.2.2013, in the context of the agreement with
Credit Agricole S.A. for the acquisition of Former Emporiki Bank. From the conversion, 6,818,181 common shares issued
corresponding to the 0.44% of total shares.
e. On 3.3.2017, following the Group's subsidiary AGI-Cypre Ermis Ltd loan capitalisation, the Bank participated in the
share capital increase of the respective subsidiary, acquiring the 75% of its share capital.
f. On 7.3.2017 following the restructuring plan, the Bank acquired the 47.04% of the share capital of Famar S.A. (note 12)
g. On 11.4.2017 the sale of all shares of the Bank's subsidiary, Alpha Bank Srbija A.D. was completed.
h. On 4.5.2017, the Bank proceeded to the sale of 1% Cepal Holdings S.A. shares, and participated in its share capital
increase by issuing preferred shares, paying an amount of E 8 million, whilst on 18.5.2017 the Bank proceeded to the sale
of 1,23% Cepal Holdings S.A. shares.
i. On 9.5.2017, a capital repayment of E28.6 million of Bank's subsidiary, Emporiki Development and Real Estate Management
Α.Ε., was completed.
28. Events after the balance sheet date
There are no significant subsequent events after balance sheet date that have an effect to these interim financial
statements.
Athens, 31 August 2017
THE CHAIRMAN THE MANAGING DIRECTOR THE GENERAL MANAGER THE ACCOUNTING
OF THE BOARD OF DIRECTORS AND CHIEF FINANCIAL OFFICER AND TAX MANAGER
VASILEIOS T. RAPANOSID. No. ΑΙ 666242 DEMETRIOS P. MANTZOUNISID. No. Ι 166670 VASSILIOS E. PSALTISID. No. ΑΙ 666591 MARIANNA D. ANTONIOUID. No. Χ 694507
Appendix - Alternative Performance Measures
According to European Securities and Markets Authority (ESMA) guidelines in relation to Alternative Performance Measures
(APMs) which published in October 2015 and came into force on 3 July 2016 on the following tables are dis-closed the
definitions and the calculations of the related (APMs) which are included in the Board of Directors' Management Report as
at 30.6.2017 and in the note Disclosures of Law 4261/5.5.2014.
(Amounts in millions of Euro)
Definition Calculation 30.6.2017 31.12.2016
Loans and Receivables to Deposit Ratio The indicator reflects the relation between loans and advances to customers before impairment and due to customers Numerator + Loans and advances to customers 56,108 56,967
Denominator + Due to customers 33,141 32,946
Ratio = 169.3% 172.9%
(Amounts in millions of Euro)
Definition Calculation 30.6.2017 30.6.2016
Cost/Income Ratio The indicator reflects the relation between recurring expenses and income of the period Numerator + Total Expenses of the period 560 589
- Non recurring expenses 25 43
Denominator + Total Income of the period 1,200 1,196
+ Share of profit/(loss) of associates and joint ventures (2) (2)
- Gains less losses on financial transactions 41 60
Ratio = 46.2% 48.2%
(Amounts in millions of Euro)
Definition Calculation 30.6.2017 30.6.2016
Cost of Risk Ratio The indicator reflects the relation between impairment losses and provisions to cover credit risk, and average balances of loans and advances to customers before impairment losses and fair value adjustments Numerator + Impairment losses and provisions to cover credit risk 463 606
x 2 926 1.212
Denominator + Average balances of loans and advances to customers before impairment losses and fair value adjustments 59,689 61,716
Ratio = 1.55% 1.96%
(Amounts in millions of Euro)
Definition Calculation 31.12.2016 31.12.2015
Return on Assets Ratio The indicator reflects the relation between profit/(losses) after income tax and average total assets (arithmetic average opening and closing balance) Numerator + Profit/(losses)after 42 (1,371)
income tax
Denominator + Average total assets 67,085 71,117
Ratio = 0.1% (1.9)%
Non recurring expenses include extraordinary events which do not occur with a certain frequency, and events that are
directly affected by the current market conditions and present significant variation between the reporting periods.
The non recurring expenses of 30.6.2017 are mainly related to the provision against the annual commission to the Greek
State for the amount of the guaranteed deferred tax asset that results from the difference between the tax rate currently
in force (29%) and the tax rate that was in force until 31.12.2014 (26%) amounting to E 8,6 million, impairment of
intangible fixed assets amounting to E 2.8 million and other provisions of the period amounting to E 9 million.
The non recurring expenses of 30.6.2016 are mainly related to the cost for the voluntary separation scheme of Alpha Bank
Cyprus Ltd amounting to E 31.5 million and the impairment losses of fixed assets amοunting to E 11.2 million. The amounts
are included in captions "Cost of voluntary separation scheme" and "Other expenses" respectively of consolidated income
statement.
This information is provided by RNS
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