REG - Alpha Bank A.E. - Half-year Report <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 3
30/08/2016 18:25
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management of the non performing loans portfolio.
With regards to the liquidity levels and funding costs of the Bank and the banking system in general, they have been
positively affected by the reinstatement of Greek government securities in the perimeter of collaterals accepted by the
European Central Bank, by the reduction of the haircut applied on eligible collaterals and by the ability to transfer part
of the securities issued by the European Financial Stability Fund that the Bank holds to the European Central Bank, as
mentioned in note 8 of the financial statements.
Based on the above and taking into account the Group's high capital adequacy and the ability of the Bank to access the
liquidity mechanisms of the eurosystem, the Group estimates that the conditions for the application of the going concern
principle for the preparation of its financial statements are met.
1.2.2 Estimation of the Group's exposure to the Hellenic Republic
The Group's total exposure to Greek Government securities and loans related to the Hellenic Republic has not changed
significantly compared to what is stated in note 41.1 of the consolidated financial statements as at 31.12.2015. The main
uncertainties regarding the estimations for the recoverability of the Group's total exposure relate to the debt service
capacity of the Hellenic Republic, which, in turn, is affected by the development of the macroeconomic environment in
Greece and the Eurozone as well as by the levels of liquidity of the Hellenic Republic.
Following the successful outcome of the negotiations of the Hellenic Republic for the coverage of the financing needs of
the Greek economy, which were completed with the signing of a relative agreement with the European Stability Mechanism on
19.8.2015, a three-year funding (which could amount to E 86 billion) was ensured, provided that specific commitments that
relate to the achievement of specific financial targets and the implementation of reforms in the Greek economy will be
respected. The financing agreement with the European Stability Mechanism is expected to cover the financing needs of the
Hellenic Republic and in parallel to contribute to the growth of the Greek economy. In addition, it was agreed that upon
the first positive assessment of the program, which was completed in June of the current year, measures will be taken for
Greek debt relief in order to enhance its sustainability.
Pursuant to the above, in the Eurogroup of 9.5.2016 the framework based on which the sustainability of the Greek debt will
be assessed was set. In the Eurogroup of 24.5.2016 the measures for the enhancement of the sustainability of the Greek debt
were further specified, separately for the short, the medium and the long term. Based on this framework, under the baseline
scenario, gross financing needs of the Hellenic Republic should remain below 15% of GDP during the post programme period
for the medium term and below 20% of GDP thereafter. By taking these measures, the finalization of which is expected in
subsequent meetings of the Eurogroup, it is estimated that the service capacity of the Greek debt will be improved.
Based on the above, the Group has not recognized impairment losses on the Greek Government securities that it holds as at
30.6.2016, however, it assesses the developments relating to the Greek Government debt in conjunction with the market
conditions and it reviews its estimations for the recoverability of its total exposure at each reporting date.
1.2.3 Recoverability of deferred tax assets
The Group recognizes deferred tax assets to the extent that it is probable that it will have sufficient future taxable
profit available, against which, deductible temporary differences and tax losses carried forward can be utilized. The
amount of deferred tax assets recognized in the consolidated financial statements as at 30.6.2016 has not changed
significantly compared with the corresponding amount of 31.12.2015. Therefore, what is stated in note 1.31.3 of the annual
financial statements of 31.12.2015, regarding the main categories of deferred tax assets recognized is also applicable to
these financial statements. In addition, with regards to the methodology applied for the assessment of recoverability of
deferred tax assets, what is stated in the above note of the annual financial statements applies, taking also into account
the factors that formulated the results of the first semester of the current year.
Income Statement
2. Gains less losses on financial transactions
From 1 January to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Foreign exchange differences 6,000 (14,109) 2,514 4,156
Trading securities
- Bonds 515 1,435 385 397
- Shares (148) 159 9 7
Investment securities:
- Bonds 14,036 (52,212) 10,231 (68,269)
- Shares 79,760 (458) 74,354 (458)
- Other securities (1,592) (23) (698) 19
From sale of holdings (1,695) 6,804 (1,705) (25)
From sales of loans 10,876 (10) 10,876 (10)
Derivative financial instruments (20,644) 42,834 (7,968) 23,730
Other financial instruments (27,070) 51,542 (30,999) 50,458
Total 60,038 35,962 56,999 10,005
On June 21, 2016, Visa Inc. completed the acquisition of Visa Europe. According to the relevant contract (as amended on
10.05.2016), the date of completion of the transaction, Visa Inc. purchased from Visa Europe's members the shares they held
due to their membership. 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 gains less losses on financial
transactions result 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 deferred payment on the third anniversary.
In addition, the Group recognized during the year the preference shares of Visa Inc. acquired under the transaction. These
shares, which were classified as available for sale, were recognized at a fair value of E 16.3 million and recorded in
gains less losses on finacial transactions.
"Other financial instruments" includes a loss from Ioniki Hotel Enterprises A.E. valuation of E 36.4 million (Note 26).
3. General administrative expenses
From 1 January to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Operating leases of buildings 21,884 22,351 10,836 10,976
Rent and maintenance of EDP equipment 10,224 10,224 5,080 5,201
EDP expenses 15,601 13,768 7,933 6,184
Marketing and advertisement expenses 11,063 10,277 6,558 6,726
Telecommunications and postage 11,981 10,421 6,106 4,784
Third party fees 21,628 23,881 11,990 11,564
Consultants fees 3,376 3,331 1,503 1,833
Contribution to the Deposit guarantee fund - Investment fund and Solvency Fund 31,363 21,461 15,576 10,655
Insurance 6,743 5,142 3,016 2,137
Consumables 3,044 3,138 1,450 1,843
Electricity 5,633 7,044 2,230 3,292
Third party fees for customer acquisition 26 56 18 32
Taxes (VAT, real estate etc) 36,446 37,351 18,714 19,557
Services from collection agencies 13,266 9,418 8,667 4,343
Building and equipment maintenance 4,497 4,473 2,418 2,470
Security 6,301 6,444 3,457 3,250
Cleaning fees 2,748 2,804 1,487 1,492
Other 41,265 45,745 21,808 24,147
Total 247,089 237,329 128,847 120,486
On 23.7.2015 under Law 4335/2015, the European Directive 2014/59 was incorporated in to 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.
According to Law 4335/2015 (Article 98), credit institutions authorized to operate in Greece, including branches operating
in third countries, should make at least an annual contribution to the Resolution Fund. According to Law 4370/2016 (Article
36), in case a credit institution enters the Resolution Fund or another ceases its participation in it during the fiscal
year, the credit institution is obliged for its regular contribution for the fiscal year in proportion to the time of its
operation. In addition 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
intended to provide a uniform level of protection to all EU depositors and to ensure the same level of stability as regards
the 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 E 21 million. These irrevocable
payment commitments have to be fully covered by cash collateral. On 20.05.2016, the Bank signed a contract with the Single
Resolution Board to provide irrevocable payment commitment and establish the necessary cash collateral for the 2016
contribution.
In the General Administrative Expenses of the first semester of 2015 there was not such contribution.
4. Impairment losses and provisions to cover credit risk
From 1 January to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Impairment losses on loans and advances to customers (note 7) 619,815 2,109,150 360,712 1,680,474
Provisions to cover credit risk relating to off balance sheet items (note 15) 494 2,701 20 (145)
Recoveries (15,481) (13,009) (11,022) (7,633)
Total 604,828 2,098,842 349,710 1,672,696
The first semester of 2016 significantly burdened from the recognition of impairment losses mainly for a large corporate
Group of companies, taking into account the conditions, the ongoing developments and the proposals made for the
restructuring of loans until the publication of the financial statements as at 30.6.2016.
Respectively, the a' semester of 2015 was burdened with significant impairment losses, after taking into consideration the
special conditions that existed in the Greek economy and affected the recoverability estimations of the loan portfolio, in
the respected period and until the date of the publication of the 30.6.2015 financial statements.
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 on the
absence of an explicit definition in the law regarding the retrospective application of income tax rate for profits of
fiscal year 2014.
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 (AE), 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 10 days from the submission of the corporate income tax return,
as well as, electronically to the Ministry of Finance, no later than 10 days following the date of the approval of the
financial statements from the Ordinary Shareholders General Meeting. For fiscal years 2011 up to 2014 the Bank and its
local subsidiaries have obtained the relevant tax certificate without any qualifications on the tax issues covered, whereas
for year 2015 the tax audit has been completed and the Bank is expected to receive tax certificate without any
qualifications. In accordance with article 56 of Law 4410/3.8.2016 for the fiscal years from 1.1.2016, the issuance of tax
certificate is rendered optional.
The income tax in the income statement from continuing operations is analysed in the table below, while the income tax from
discontinued operations is analysed in note 26:
From 1 January to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Current 6,809 9,477 3,739 4,753
Deferred 17,638 (318,835) 5,801 (323,332)
Total 24,447 (309,358) 9,540 (318,579)
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 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Debit difference of Law 4046/2012 22,277 19,973 11,139 9,987
Write-offs, depreciation and impairment of fixed assets 6,660 9,874 3,301 5,092
Valuation/impairment of loans (60,449) (389,149) (47,171) (360,316)
Valuation of loans due to hedging (640) (550) (348) (334)
Employee defined benefit obligations and insurance funds 25,199 17,075 6,161 (216)
Valuation of derivatives (6,053) 14,012 (2,569) 7,226
Effective interest rate (279) (832) (87) (311)
Fair value change of liabilities to credit institutions and other borrowed funds due to fair value hedge 3,471 (2,433) 2,264 (1,060)
Valuation/impairment of bonds and other securities 10,561 25,537 9,857 18,745
Tax losses carried forward 23,952 (29,089) 22,929 (13,126)
Other temporary differences (7,061) 16,747 325 10,981
Total 17,638 (318,835) 5,801 (323,332)
A reconciliation between the nominal and effective tax rate is provided below:
From 1 January to
30.6.2016 30.6.2015
% %
Profit/(loss) before income tax 3,896 (1,472,233)
Income tax (weighted average nominal tax rate) 94.74 3,691 25.74 (378,969)
Increase/(decrease) due to:
Non taxable income (11,252) 0.16 (2,407)
Non deductible expenses 11,708 (2.82) 41,508
Tax losses carried forward (13.73) (535) 0.04 (611)
Other tax adjustments 20,835 (2.11) 31,121
Income tax (effective tax rate) 24,447 21.01 (309,358)
From 1 April to
30.6.2016 30.6.2015
% %
Profit/(loss) before income tax (8.906) (1,365,471)
Income tax (weighted average nominal tax rate) 33.69 (3,000) 25.95 (354,342)
Increase/(decrease) due to:
Non taxable income (10,899) 0.16 (2,177)
Non deductible expenses 48.42 (4,312) (2.04) 27,892
Tax losses carried forward 4.79 (427)
Other tax adjustments 28,178 (0.74) 10,048
Income tax (effective tax rate) 9,540 23.33 (318.579)
According to article 5 of Law 4303/17.10.2014 "Ratification of the Legislative Act "Emergency legislation to replenish the
General Secretary of Revenue upon early termination of office" (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 4340/01.11.2015 "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 deferred tax asset which is included to the same legislation, is limited to the amount related to
the debit charge of PSI and the provisions for credit risk, which have been accounted until 30 June 2015.
On 30 June 2016 the amount of deferred tax assets which is estimated to be within the scope of the aforementioned Law
amounts to E 3,394,799 (31.12.2015: E 3.417.055).
Income tax of other comprehensive income recognized directly in Equity
From 1 January to
30.6.2016 30.6.2015
Before income tax Income tax After Before income tax Income tax After
income tax income tax
Amounts that may be reclassified to the Income Statement
Net change in available for sale securities' reserve (20,838) 3,543 (17,295) (328,119) 77,920 (250,199)
Net change in cash flow hedge reserve (127,695) 37,126 (90,569) 63,745 (16,586) 47,159
Foreign exchange differences on translating and hedging the net investment in foreign operations (1,941) (2,034) (3,975) 635 1,229 1,864
Change in the share of other comprehensive income of associates and joint ventures 101 101
Total (150,474) 38,635 (111,839) (263,638) 62,563 (201,075)
From 1 April to
30.6.2016 30.6.2015
Before income tax Income tax After Before income tax Income tax After
income tax income tax
Amounts that may be reclassified to the Income Statement
Net change in available for sale securities' reserve 73,668 (22,090) 51,578 (127,829) 25,396 (102,433)
Net change in cash flow hedge reserve (28,443) 7,976 (20,467) 153,944 (40,038) 113,906
Foreign exchange differences on translating and hedging the net investment in foreign operations 1,206 (1,748) (542) (1,759) (653) (2,412)
Change in the share of other comprehensive income of associates and joint ventures 101 101
Total 46,431 (15,862) 30,569 24,457 (15,295) 9,162
During the first semester of 2016, "Retained earnings" includes a credit tax amount of E 281 which derives from the share
capital increase expenses which were recognized in the same account and relates to the share capital increase which took
place during 2015.
In addition, during the same period, "Retained earnings" includes deferred tax asset amount of E 24 which derives from
(Purchases)/(Redemptions)/ Sales of hybrid securities. The respective amount for the first semester of 2015 was E 251
(deferred tax asset).
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 period.
ii. The after-tax amount of the dividends from preference shares for cumulative dividend preference shares required for the
period, whether or not the dividends have been declared.
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 Januray to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Profit/(loss) attributable to Equity owners of the Bank (19,043) (1,252,250) (16,836) (1,136,276)
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 ) (0.0124) (4.9035) (0.0110) (4.4493)
From 1 Januray to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Profit/(loss) from continuing operations attributable to Equity owners of the Bank (20,650) (1,163,042) (18,502) (1,046,923)
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 ) (0.0134) (4.5541) (0.0120) (4.0995)
From 1 Januray to From 1 April to
30.6.2016 30.6.2015 30.6.2016 30.6.2015
Profit/(loss) from discontinued operations attributable to Equity owners of the Bank 1,607 (89,208) 1,666 (89,353)
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 ) 0.0010 (0.3493) 0.0011 (0.3499)
The weighted average number of the ordinary shares as at 30.6.2015, 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
30.6.2016 31.12.2015
Individuals
Mortgages 19,934,735 20,171,970
Consumer:
- Non-securitized 4,155,608 4,063,791
- Securitized 1,243,419 1,299,934
Credit cards:
- Non-securitized 705,031 720,016
- Securitized 544,701 565,583
Other 2,448 2,601
Total 26,585,942 26,823,895
Companies:
Corporate loans:
- Non-securitized 27,627,285 27,547,074
- Securitized 1,997,083 2,126,179
Finance leases (Leasing):
- Non-Securitized 372,291 378,398
- Securitized 313,107 315,201
Factoring 595,384 599,387
Total 30,905,150 30,966,239
Other receivables 325,320 417,737
57,816,412 58,207,871
Less: (12,320,450) (12,021,755)
Allowance for impairment losses (1)
Total 45,495,962 46,186,116
The Bank and Alpha Leasing A.E. have proceeded in securitization of consumer, corporate loans, credit cards and finance
leases 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 cancel an amount of E 3.75 billion of covered bonds which had been issued and secured
with mortgage loans. As at 30.6.2016, the balance of the covered bonds amounts to E 5 million (note 13). The book value of
mortgage loans provided as coverage for the above mentioned bonds amounted to E 16.7 million.
(1) n addition to the allowance for impairment losses regarding loans and advances to customers, a provision of E 5,200
(31.12.2015: E 4,713) has been recorded to cover credit risk relating to off-balance sheet items. The total provision
recorded to cover credit risk amounts to E 12,325,650 (31.12.2015: E 12,026,468).
Allowance for impairment losses
Balance 1.1.2015 8,830,277
Impairment losses for the period from continuing operations (note 4) 2,109,150
Impairment losses for the period from discontinued operations 534
Transfers of accumulated provisions to assets held for sale (110,626)
Change in present value of the impairment losses from continuing operations 257,527
Change in present value of the impairment losses from discontinued operations 1,435
Foreign exchange differences 72,139
Loans written-off during the period (157,712)
Balance 30.6.2015 11,002,724
Changes for the period 1.7. - 31.12.2015
Impairment losses for the period from continuing operations 938,157
Transfers of accumulated provisions to assets held for sale (1,286)
Change in present value of the impairment losses from continuing operations 290,469
Foreign exchange differences (17,358)
Loans written-off during the period (190,951)
Balance 31.12.2015 12,021,755
Changes for the period 1.1. - 30.6.2016
Impairment losses for the period (note 4) 691,815
Transfers of accumulated provisions to assets held for sale (99,975)
Change in present value of the allowance account 261,047
Sales of impaired loans (8,596)
Foreign exchange differences (6,209)
Loans written-off during the period (467,387)
Balance 30.6.2015 12,320,450
The finance lease receivables by duration are as follows:
30.6.2016 31.12.2015
Up to 1 year 380,876 396,490
From 1 year to 5 years 152,361 136,893
Over 5 years 256,000 265,009
789,237 798,392
Non accrued finance lease income (103,839) (104,793)
Total 685,398 693,599
The net amount of finance lease receivables by duration is analyzed as follows:
30.6.2016 31.12.2015
Up to 1 year 364,485 380,421
From 1 year to 5 years 107,716 91,614
Over 5 years 213,197 221,564
Total 685,398 693,599
8. Investment and held for trading securities
i. Held for trading securities
Securities held for trading amounted to E 2.6 million on 30.6.2016 (31.12.2015: E 2.8 million) out of which Greek
government bonds E 1.2 million (31.12.2015: E 1.9 million).
ii. Investment securities
a. Available for sale
The available for sale portfolio amounted to E 5.6 billion as at 30.6.2016 (31.12.2015: E 5.8 billion). These amounts
include securities issued by the Greek State that amounted to E 3.7 billion as at 30.6.2016 (31.12.2015: E 3.9 billion) of
which E 1.9 billion (31.12.2015: E 2.1 billion) related to Greek Government treasury bills. The Group during the first
semester of 2016 has recognized impairment losses for shares amounting to E 1,479 and for mutual funds amounting to E 1,596
which are included in "Gains less losses on financial transactions".
b. Held to maturity
The held to maturity portfolio amounts to E 44.7 million as at 30.6.2016 (31.12.2015: E 79.7 million).
c. Loans and receivables
Loans and receivables include bonds issued by the European Financial Stability Facility (E.F.S.F.) at a nominal value of
E 3,960,544 received by the Bank as a result of the share capital increase which was completed on 6.6.2013 and of nominal
value of E 284,628 which were transferred to the Bank from the Hellenic Financial Stability Fund for the undertaking of
customer deposits from the former Cooperative Banks of West Macedonia, Evia and Dodecanese in December 2013.
These bonds under the original contract could only be used as collateral to obtain liquidity from the Eurosystem or from
interbank counterparties in repos.
In April 2016 the subscription agreement between the European Financial Stability Fund (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 first semester of 2016, the Bank conducted sale
transactions of EFSF securities at a nominal value of E 595 million, under the PSPP program.
The total book value of these bonds on 30.6.2016 was E 3.7 billion. (31.12.2015: E 4.3 billion.)
9. Investment property
Land - Buildings
Balance 1.1.2015
Cost 693,486
Accumulated depreciation and impairment losses (126,274)
1.1.2015 - 30.6.2015
Net book value 1.1.2015 567,212
Additions 4,583
Additions from companies consolidated for the first time in the first semester of 2015 43,306
Reclassifications to "Other Assets" (109)
Reclassification from "Property, plant and equipment" 3,800
Reclassification to "Assets held for sale" (939)
Reclassification of investment assets from discontinued operations to "Asset held for sale" (1,268)
Foreign exchange differences 489
Disposals/Write-offs (5,502)
Depreciation charge for the period from continuing operations (5,392)
Depreciation charge for the period from discontinued operations (9)
Net book value 30.6.2015 606,171
Balance 30.6.2015
Cost 750,342
Accumulated depreciation and impairment losses (144,171)
1.7.2015 - 31.12.2015
Net book value 1.7.2015 606,171
Additions 16,960
Additions from companies consolidated for the first time in the second semester of 2015 47,635
Reclassification from "Property, plant and equipment" 345
Foreign exchange differences (1,259)
Disposals/Write-offs (8,334)
Depreciation charge for the period from continuing operations (5,572)
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 - 30.6.2016
Net book value 1.1.2016 623,662
Additions 40,481
Reclassification to "Assets held for sale" (40,233)
Reclassification from "Property, plant and equipment" 25,314
Foreign exchange differences (101)
Disposals/Write-offs (14,368)
Depreciation charge for the period from continuing operations (6,465)
Net book value 30.6.2016 628,290
Balance 30.6.2016
Cost 802,219
Accumulated depreciation and impairment losses (173,929)
In the first semester of 2016 transfers to "Assets held for sale" related mainly to fixed assets of APE Fixed Assets AE.
In 2015, an impairment loss amounting to E 32.3 million was recognized, in order for the carrying amount of investment
property not to exceed their recoverable amount as at 31.12.2015, as estimated by certified valuators.
The additions from companies consolidated for the first time in 2015 and the additions of the first semester of 2016 mainly
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 - 30.6.2015
Net book value 1.1.2015 1,005,801 1,150 76,397 1,083,348
Foreign exchange differences 211 55 266
Additions 3,941 9,970 13,911
Additions from companies consolidated for the first time in 7 7
the first semester of 2015
Additions from discontinued operations 127 70 197
Disposals/Write-offs (902) (58) (960)
Disposals/Write-offs from discontinued operations (120) (25) (145)
Reclassification to "Investment property" (3,800) (3,800)
Reclassification of investment assets from discontinued operations to "Asset held for sale" (3,582) (2,349) (5,931)
Reclassification to "Property, plant and equipment" 49 (49)
Reclassification from/to "Other assets" (5,778) (18) 41 (5,755)
Depreciation charge for the period from continuing operations (13,727) (294) (9,701) (23,722)
Depreciation charge for the period from discontinued operations (410) (302) (712)
Net book value 30.6.2015 981,810 838 74,056 1,056,704
Balance 30.6.2015
Cost 1,394,992 4,080 514,877 1,913,949
Accumulated depreciation and impairment losses (413,182) (3,242) (440,821) (857,245)
1.7.2015 - 31.12.2015
Net book value 1.7.2015 981,810 838 74,056 1,056,704
Foreign exchange differences (230) (1) 83 (148)
Additions 3,718 102 7,490 11,310
Additions from companies consolidated for the first time in 942 942
the second semester of 2015
Disposals/Write-offs (2,809) (7) (69) (2,885)
Reclassification to "Investment property" (345) (345)
Reclassification of assets from discontinued operations to "Assets held for sale" (1,360) (525) (1,885)
Reclassification to "Assets held for sale" (164,166) (3,088) (167,254)
Reclassification to "Property, plant and equipment" 615 (615)
Reclassification from/to "Other assets" (8,324) (581) (8,905)
Depreciation charge for the period from continuing operations (13,738) (106) (10,536) (24,380)
Depreciation charge for the period from discontinued operations
Depreciation charge for the period (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 - 30.6.2016
Net book value 1.1.2016 792,627 1,441 66,833 860,901
Foreign exchange differences (450) (48) (498)
Additions 3,428 10,710 14,138
Disposals/Write-offs (1,199) (3) (57) (1,259)
Reclassification to "Investment property" (25,314) (25,314)
Reclassification from/to "Other assets" (3,379) (467) 544 (3,302)
Depreciation charge from continuing operations (10,918) (179) (9,838) (20,935)
Net book value 30.6.2016 754,795 792 68,144 823,731
Balance 30.6.2016
Cost 1,135,677 3,334 475,766 1,614,777
Accumulated depreciation and impairment losses (380,882) (2,542) (407,622) (791,046)
During the current period there was no significant variation in property, plant and equipment.
In 2015, an impairment loss of E 2.3 million was recognized for property, plant and equipment and was recorded in "Other
Expenses".
11. Goodwill and other intangible assets
Goodwill Software Other Total
Balance 1.1.2015
Cost 488,347 155,103 643,450
Accumulated amortization and impairment loss (278,559) (33,467) (312,026)
1.1.2015 - 30.6.2015
Net book value 1.1.2015 209,788 121,636 331,424
Additions 24,244 24,244
Additions from companies consolidated for the first time in 2,900 2,900
the first semester of 2015
Additions from discontinued operations 74 74
Reclassification of assets of discontinued operations to "Assets held for sale" (3,353) 1 (3,352)
Foreign exchange differences 13 13
Amortization for the period from continuing operations (11,003) (11,420) (22,423)
Amortization for the period from discontinued opearations (240) (240)
Net book value 30.6.2015 2,900 219,523 110,217 332,640
Balance 30.6.2015
Cost 2,900 506,086 153,827 662,813
Accumulated amortization and impairment loss (286,563) (43,610) (330,173)
1.7.2015 - 31.12.2015
Net book value 1.7.2015 2,900 219,523 110,217 332,640
Additions 36,611 72 36,683
Reclassification of assets of discontinued operations to "Assets held for sale" (865) (2) (867)
Reclassification to "Assets held for sale" 22 22
Foreign exchange differences 185 185
Amortization charge for the period from continued operations (12,022) (11,490) (23,512)
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 loss (300,555) (53,566) (354,121)
1.1.2016 - 30.6.2016
Net book value 1.1.2016 2,900 243,454 98,797 345,151
Additions 43,205 43,205
Foreign exchange differences (38) 1 (37)
Amortization charge for the period from continuing operations (12,949) (9,146) (22,095)
Net book value 30.6.2016 2,900 273,672 89,652 366,224
Balance 30.6.2016
Cost 2,900 586,672 152,192 741,764
Accumulated amortization and impairment loss (313,000) (62,540) (375,540)
The additions of the first semester of 2016 mainly concern acquisitions of user rights for computer applications.
In 2015 the goodwill amounting to E 2.9 million relates to the acquired company Asmita Gardens SLR during the first
semester of 2015 after the restatement, following the completion of valuation of its assets (note 28).
Liabilities
12. Due to Banks
30.6.2016 31.12.2015
Deposits:
- Current accounts 36,079 112,482
- Term deposits:
Central Banks 22,671,359 24,404,828
Other credit institutions 25,945 17,408
Cash collateral for derivative margin account 28,703 56,960
Sale of repurchase agreements (Repos) 400,540 269,292
Borrowing funds 252,162
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