REG - Alpha Bank A.E. - Half-year Report <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 4
31/08/2017 18:16
- Part 4: For the preceding part double click ID:nRSe5112Pc
(61) 51
Additions 14,129 10,042 24,171
Disposals/Write-offs (1,247) (14) (1,261)
Reclassification to "Investment property" (28) (28)
Reclassification from "Investment property" 1,377 1,377
Reclassification to "Other assets" (5,867) (5,867)
Depreciation charge from continuing operations (10,052) (137) (9,257) (19,446)
Impairment losses (115) (115)
Net book value 30.6.2017 723,973 585 68,292 792,850
Balance 30.6.2017
Cost 1,099,855 3,386 471,380 1,574,621
Accumulated depreciation and impairment losses (375,882) (2,801) (403,088) (781,771)
During the current period there was no significant variation in property, plant and equipment.
In 2016, an impairment loss of E 3.9 million was recognized for property, plant and equipment and was recorded in "Other
Expenses".
13. Goodwill and other intangible assets
Goodwill Software Other Total
Balance 1.1.2016
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 for the period from continuing operations (12,826) (9,146) (21,972)
Amortization for the period from discontinued opearations (123) (123)
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)
1.7.2016 - 31.12.2016
Net book value 1.7.2016 2,900 273,672 89,652 366,224
Additions 36,215 36,215
Reclassification to "Assets held for sale" (2) (2)
Reclassification of assets of discontinued operations to "Assets held for sale" (1,338) (1,338)
Foreign exchange differences (8) (1) (9)
Disposals/ Write-offs (170) (170)
Amortization charge for the period from continuing operations (13,705) (9,146) (22,851)
Impairment losses (2,900) (3,855) (6,755)
Net book value 31.12.2016 - 290,809 80,505 371,314
Balance 31.12.2016
Cost 617,620 140,128 757,748
Accumulated amortization and impairment loss (326,811) (59,623) (386,434)
1.1.2017 - 30.6.2017
Net book value 1.1.2017 290,809 80,505 371,314
Additions 30,134 30,134
Foreign exchange differences (7) 1 (6)
Amortization charge for the period from continuing operations (14,847) (9,145) (23,992)
Impairment losses (2,840) (2,840)
Net book value 30.6.2017 - 303,249 71,361 374,610
Balance 30.6.2017
Cost 647,638 140,129 787,767
Accumulated amortization and impairment loss (344,389) (68,768) (413,157)
The additions of the first semester of 2017 mainly concern acquisitions of user rights for computer applications.
LIABILITIES
14. Due to Banks
30.6.2017 31.12.2016
Deposits:
- Current accounts 38,253 35,304
- Term deposits:
Central Banks 15,030,475 18,331,086
Other credit institutions 24,218 21,053
Cash collateral for derivative margin account 34,543 25,465
Sale of repurchase agreements (Repos) 1,772,557 411,914
Borrowing funds 312,268 277,404
Deposits on demand:
- Other credit institutions 3,747 3,351
Total 17,216,061 19,105,577
Group's deposits from Eurosystem decreased by E 3.3 billion during the first semester, mainly due to the signing of new
repurchase agreements (Repos), the sale of EFSF bonds through the PSPP programme (note 10), and other bonds.
In June 2016, the European Central Bank decided to intro-duce a new programme of targeted long term refinancing operations
(TLTRO-II) with a four year duration. The Bank participates in this programme with an amount of E 3.1 billion.
The caption "Borrowed funds" mainly includes liabilities due to European Investment Bank and European Bank for
Reconstruction and Development amounting to E 294.4 million (31.12.2016: E276.3 million).
15. Debt securities in issue and other borrowed funds
i. Issues guaranteed by the Greek State (Law 3723/2008)
Under the programme for the enhancement of the Greek's economy liquidity, according to Law 3723/2008, the first semester of
2017 the Bank proceeded to the issuance of senior debt securities guaranteed by the Greek State amounting to E 300 million
whilst the maturities/redemptions for the same period amounted to E 1.3 billion.
The total balance of senior debt securities guaranteed by the Greek State as at 30.6.2017 amounts to Enil (31.12.2016: E 1
billion).
These securities are not included in the "Debt securities in issue and other borrowed funds", as they are held by the
Group.
ii. Covered bonds*
Covered bonds are not included in caption "Debt securities in issue and other borrowed funds" as these securities are held
by the Group.
The total balance of covered bonds as at 30.6.2017 amounts to E 5 million.
In the context of the existing program of direct covered bonds issuance of amount E 8 billion, the Bank issued, on
2.8.2017, a bond with a nominal value of E 1 billion collateralized with mortgage loans of an amount E 1.2 billion,
maturity date on 23.10.2018 and bearing an interest rate corresponding to Euribor 3 months plus a margin of 1.2%. The
issuance that is wholly purchased by the Bank, is used as collateral in financing operations.
iii. Senior debt securities
Balance 1.1.2017 26,834
Changes for the period 1.1 - 30.6.2017
Maturities/Repayments (17,719)
Accrued interest 326
Balance 30.6.2017 9,441
---------------------------
* Financial disclosures regarding covered bond issues, as determined by the 2620/28.08.2009 Act of the Bank of Greece
have been published on the Bank's website.
iv. Liabilities from the securitization of shipping loans
Balance 1.1.2017 252,320
Changes for the period 1.1 - 30.6.2017
Maturities/Repayments (71,942)
Accrued interest 3,625
Foreign exchange differences (16,113)
Balance 30.6.2017 167,890
The Bank has 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 30.6.2017 amounts to E 168 million.
v. Liabilities from the securitization of corporate (SME) loans
Balance 1.1.2017 320,053
Changes for the period 1.1 - 30.6.2017
Capitalized expenses (1,411)
Maturities/Repayments (1,882)
Accrued interest 2.552
Balance 30.6.2017 319,312
In prior year, the Bank has proceeded with the securitization of SME's loans, transferring the aforementioned loans to the
fully consolidated special purpose entity, Alpha Proodos Designated Activity Company (D.A.C.), which in turn raised funding
from third parties and from the Bank.
The liability of the Group to third parties on 30.6.2017 amounts to E 319 million.
vi. Liabilities from the securitization of other loans
Liabilities arising from the securitization 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 E 4.5 billion have been
issued by special purpose entities and are held by the Bank.
vii. Subordinated debt
1. Subordinated debt (Lower Tier II, Upper Tier II)
Balance 1.1.2017 82,338
Changes for the period 1.1 - 30.6.2017
Maturities/Repayments (25,415)
Accrued interest 237
Balance 30.6.2017 57,160
The variance mainly relates to the maturity of subordinated debts of E 25.3 million.
2. Convertible bond loan
Balance 1.1.2017 13,995
Changes for the period 1.1 - 30.6.2017
Fair value change (1,790)
Maturities (12,205)
Balance 30.6.2017 -
The convertible bond concerns to bond issuance with nominal value E 150 million issued by the Bank on 1.2.2013 under an
agreement with Credit Agricole SA for the acquisition of former Emporiki Bank. The convertible bond matured on 1.2.2017,
and on 23.2.2017 following the exercise of the conversion right from the total bondholders, the Bank proceeded to a share
capital increase. (Note 17)
Total of debt securities in issue and other borrowed funds as at 30.6.2017 553,803
Of the above debt securities in issue amounting to E 553,803 an amount of E 48,426 (31.12.2016: E 78,675) held by Group
customers has been reclassified to "Due to customer". Therefore, the balance of "Debt securities in issue held by
institu-tional investors and other borrowed funds" as at 30.6.2017, amounts to E 505,377 (31.12.2016: E 616,865).
16. Provisions
30.6.2017 31.12.2016
Insurance 243,645 219,530
Provisions to cover credit risk and other provisions 103,311 102,174
Total 346,956 321,704
a. Insurance
30.6.2017 31.12.2016
Life insurance
Mathematical reserves 243,148 218,996
Outstanding claim reserves 497 534
Total 243,645 219,530
b. Provisions to cover credit risk and other provisions
Balance 1.1.2016 129,640
Changes for the period 1.1 - 30.6.2016
Provisions to cover credit risk relating to off balance sheet items from continuing operations (note 6) 557
Provisions to cover credit risk relating to off-balance sheet items from discontinued operations (63)
Provision for voluntary separation scheme 30,993
Used provision for voluntary separation scheme (30,993)
Other provisions for the period 11,212
Other provisions used during the period (3,094)
Foreign exchange differences 34
Balance 30.6.2016 138,286
Changes for the period 1.7 - 31.12.2016
Reclassification of provisions from Alpha Bank Srbija A.D. to "Liabilities related assets held for sale" (1,076)
Provisions to cover credit risk relating to off-balance sheet items (1,914)
Used provision for voluntary separation scheme (35,262)
Other provisions for the period 5,573
Other provisions used for companies that were consolidated for the first time in 2016 (2,444)
Other provisions used during the period (998)
Foreign exchange differences 9
Balance 31.12.2016 102,174
Changes for the period 1.1. - 30.6.2017
Provisions to cover credit risk relating to off-balance sheet items (note 6) (1,671)
Used provision for voluntary separation scheme of Alpha Bank A.E. (754)
Other provisions used during the period (4,109)
Other provisions for the period 7,689
Foreign exchange differences (18)
Balance 30.6.2017 103,311
The amounts of other provisions charged to the profit and loss account are included in "Other Expenses" of the income
statement.
On 30.6.2017 the balance of provisions to cover credit risk relating to off-balance sheet items amounts to E 1.3 million
(31.12.2016: E 3.2 million) and other provisions to E 102 million (31.12.2016: E 99 million) out of which:
• An amount of E 41.2 million relates to pending legal cases. (31.12.2016: E 38.6 million).
• An amount of E 28.3 million (31.12.2016: E 29 million) refers to the remaining of the E 64.3 million provision of
separation scheme which was recorded by the Bank on 31.12.2015, in the context of the updated restructuring plan and other
commitments. The Bank, within the second quarter of 2017 set up a specific program for personnel working in the Prefecture
of Thessaloniki which includes the legal compensation and other inceptives depending on personnel's age which will also be
covered by this provision.
During 2016, Alpha Bank Cyprus prepared a voluntary separation scheme, aiming to achieve substantial benefit in operational
costs. The Group recognized during the first quarter 2016 a provision of amount E 31 million for the expected cost, which
has been used during the second quarter for the compensations.
EQUITY
17. Share capital and Retained earnings
a. Share capital
On 23.2.2017, as a result of exercising the conversion right of all bondholders, the Bank's Board of Directors, approved
the share capital increase of E 2,045,454.30, due to the conversion of the convertible bond of E 150 million that was
issued on 1.2.2013, under the agreement with Credit Agricole S.A., Crédit Agricole Corporate and Investment Bank.
As a result of the above the Bank's share capital on 30.6.2017 amounts to E 463,109,814.30.
From the conversion, 6,818,181 new ordinary, registered, voting, paperless shares of the Bank with a nominal value of
E 0.30 each, were issued and registered to Athens Stock Exchange on 18.4.2017.
b. Share premium
Following the above share capital increase «Share premium» was increased by E 10,159,089.69.
c. Retained earnings
i. Since in 2016 there were no distributable profits, in accordance with article 44a of Codified Law 2190/1920, the
Ordinary General Meeting of Shareholders on 30.6.2017 decided the non-distribution of dividends to ordinary shareholders of
the Bank.
ii. The caption "Retained Earnings" as at 30.6.2017 includes expenses relating to the share capital increase, amounting to
E 0.4 million (31.12.2016: E 0.7 million) net of income tax.
18. Hybrid securities
30.6.2017 31.12.2016
Perpetual with 1st call option on 18.2.2015 and annually 15,232 15,232
Securities held by Group companies (100) (100)
Total 15,132 15,132
ADDITIONAL INFORMATION
19. Contingent liabilities and commitments
a. Legal cases
The Group, in the ordinary course of business, is defendant in claims from customers and other legal proceedings. In the
context of managing the operational risk events and on the basis of the accounting principles followed, the Group records
all the filed lawsuits or similar actions raised by third parties against the Group and considers any possibility of their
success, as well as the possible outcome.
For cases where there is a significant probability of an advesre outcome, and the result may be reliable estimated, the
Group books a provision which is included in the Balance Sheet, under the caption "Provisions". On 30.6.2017 the amount of
the such provision stood at E 41.2 million.
For cases where according to their progress and the evaluation of the Legal department on 30.06.2017, an adverse outcome is
not probable or the potential outflow cannot be reliably estimated due to the complexity of the cases, the time period they
will last and the uncertainty of their outcome, the Group has not booked a provision.
According to the estimations of the Legal department, the ultimate settlement of the claims and lawsuits is not expected to
have a material effect on the financial position or the operations of the Group.
b. Tax issues
The Bank has been audited by the tax authorities for the years up to and including 2009. For the year 2010, tax audit is in
progress. For the years 2011 up to 2015, the Bank has obtained a tax certificate with no qualifications according to the
article 82 of Law 2238/1994 and the article 65a of Law 4174/2013, whereas for the year 2016 the Bank is expected to receive
tax certificate with no qualifications. 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.
Alpha Bank's branches in London and Bulgaria have been audited by the tax authorities up to and including the years 2013
and 2016 respectively. For Bulgaria Branch, the tax audit for the year 2016 was completed in February 2017. 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 since
September 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.
Based on Ministerial Decision 1006/5.1.2016 there is no exemption from tax audit by the tax authorities to those entities
that have been tax audited by the independent auditor and they have received an unqualified tax audit certificate.
Therefore, the tax authorities may reaudit the tax books for previous years.
Additional taxes and penalties may be imposed as a result of such tax audits, which cannot be reliably determined.
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) 2014
2. Alpha Bank Cyprus Ltd (tax audit is in progress for years from 2012-2014) 2011
3. Alpha Bank Romania S.A. 2006
4. Alpha Bank Srbija A.D. (the Bank has been disposed as of 11.4.2017) 2004
5. Alpha Bank Albania SH.A. 2011
Leasing companies
1. Alpha Leasing A.E. ** 2010
2. Alpha Leasing Romania IFN S.A. 2007
3. ABC Factors A.E. ** (tax audit is in progress for the 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
-----------------------------
** These companies received tax certificate for the years 2011 to 2015 without any qualification (note 7).
*** 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.
Name Year
Investment Banking (continue)
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) 2014
Insurance
1. Alpha Insurance Brokers Α.Ε. **/*** 2009
2. Alpha Insurance Brokers S.R.L. 2005
3. Alphalife A.A.E.Z. **/*** (tax audit is in progress for 2010) 2009
Real estate and hotel
1. Alpha Astika Akinita Α.Ε.** (tax audit is in progress for 2010) 2009
2. Ioniki Hotel Enterprises ** (the company was disposed on 16.12.2016) 2011
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 (the company was disposed on 21.10.2016) 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 ΙΙ Α.Ε. (commencement of operation 2012) * *
13. Alpha Investment Property Amarousion Ι Α.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- the company was disposed on 18.5.2017) *
17. Stockfort Ltd (commencement of operation 2010) *
18. Romfelt Real Estate SA (commencement of operation 1991) *
19. AGI-RRE Zeus S.R.L. (commencement of operation 2012) *
20. AGI-RRE Poseidon S.R.L. (commencement of operation 2012) *
21. AGI-RRE Hera S.R.L. (commencement of operation 2012) *
22. AGI-BRE Participations 2 E.O.O.D. (commencement of operation 2012) *
23. AGI-BRE Participations 2BG E.O.O.D. (commencement of operation 2012) *
24. AGI-BRE Participations 3 E.O.O.D. (commencement of operation 2012) *
25. AGI-BRE Participations 4 E.O.O.D. (commencement of operation 2012) *
26. APE Fixed Assets A.E.**/*** 2009
27. SC Cordia Residence S.R.L. 2013
28. HT-1 E.O.O.D (commencement of operation 2013) *
29. AGI-RRE Cleopatra S.R.L. (commencement of operation 2014) *
30. AGI-RRE Hermes S.R.L. (commencement of operation 2014) *
31. SC Carmel Residential S.R.L. (commencement of operation 2013) *
32. Alpha Investment Property Neas Kifissias Α.Ε. (commencement of operation 2014) *
33. Alpha Investment Property Kallirois Α.Ε. (commencement of operation 2014) *
34. Alpha Investment Property Livadias Α.Ε. (commencement of operation 2014) *
35. AGI-SRE Ariadni DOO (commencement of operation 2015- the company was disposed on 20.6.2017) *
36. Alpha Investment Property Kefalariou Α.Ε. (commencement of operation 2015) *
37. Alpha Investment Property Neas Erythreas Α.Ε. (commencement of operation 2015) *
38. Alpha Investment Property Chanion AE (Former Anaplasi Plagias AE- commencement of operation 2011) *
39. Asmita Gardens S.R.L. 2010
40. Ashtrom Residents S.R.L. (commencement of operation 2006) *
41. Cubic Center Development S.A. (commencement of operation 2010) *
42. AGI-BRE Participations 5 EOOD (commencement of operation 2015) *
43. AGI-SRE Participations 1 DOO (commencement of operation 2016) *
44. Alpha Investment Property Spaton AE (commencement of operation 2017) *
------------------------------
* 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 to 2015 without any qualification (note 7).
*** 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
Special purpose and holding entities
1. Alpha Credit Group Plc (voluntary settlement of tax obligation) 2014
2. Alpha Group Jersey Ltd ****
3. Alpha Group Investments Ltd (commencement of operation 2006) *
4. Ionian Holdings Α.Ε.**/*** (tax audit is in progress for 2010) 2009
5. Ionian Equity Participations Ltd (commencement of operation 2006) *
6. Emporiki Group Finance Plc (voluntary settlement of tax obligation) 2014
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) 2014
11. Epihiro Plc (voluntary settlement of tax obligation) 2014
12. Irida Plc (voluntary settlement of tax obligation) 2014
13. Pisti 2010-1 Plc (voluntary settlement of tax obligation) 2014
14. Alpha Shipping Finance Ltd (commencement of operation 2014) *
15. Alpha Proodos DAC (commencement of operation 2016) *
16. AGI-RRE Athena Ltd (commencement of operation 2011) *
17. AGI-RRE Poseidon Ltd (commencement of operation 2012) *
18. AGI-RRE Hera Ltd (commencement of operation 2012) *
19. Umera Ltd (commencement of operation 2012) *
20. AGI-BRE Participations 2 Ltd (commencement of operation 2011) *
21. AGI-BRE Participations 3 Ltd (commencement of operation 2011) *
22. AGI-BRE Participations 4 Ltd (commencement of operation 2010) *
23. Alpha Real Estate Services LLC (commencement of operation 2010) *
24. AGI-RRE Ares Ltd (commencement of operation 2010) *
25. AGI-RRE Venus Ltd (commencement of operation 2012) *
26. AGI-RRE Artemis Ltd (commencement of operation 2012) *
27. AGI-BRE Participations 5 Ltd (commencement of operation 2012) *
28. AGI-RRE Cleopatra Ltd (commencement of operation 2013) *
29. AGI-RRE Hermes Ltd (commencement of operation 2013) *
30. AGI-RRE Arsinoe Ltd (commencement of operation 2013) *
31. AGI-SRE Ariadni Ltd (commencement of operation 2014) *
32. Zerelda Ltd (commencement of operation 2012) *
33. AGI-Cypre Alaminos Ltd (commencement of operation 2014) *
34. AGI-Cypre Tochni Ltd (commencement of operation 2014) *
35. AGI-Cypre Evagoras Ltd (commencement of operation 2014) *
36. AGI-Cypre Tersefanou Ltd (commencement of operation 2014) *
37. AGI-Cypre Mazotos Ltd (commencement of operation 2014) *
38. AGI-Cypre Ermis Ltd (commencement of operation 2014) *
39. 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 to 2015 without any qualification (note 7).
*** 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:
30.6.2017 31.12.2016
- less than one year 40,184 41,708
- between one and five years 96,889 104,517
- over five years 135,322 146,383
Total 272,395 292,608
The minimum future lease fees are:
30.6.2017 31.12.2016
- less than one year 13,765 13,419
- between one and five years 46,787 43,754
- over five years 43,472 48,527
Total 104,024 105,700
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 monitored 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:
30.6.2017 31.12.2016
Letters of credit 33,458 47,993
Letters of guarantee and other guarantees 3,461,405 3,519,793
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 30.6.2017 amounts to E 423.3 million (31.12.2016: E 494.7 million) and are included in the calculation of
risk weighted assets.
The Bank has committed to contribute in the share capital of the joint venture Alpha TANEO AKES up to the amount of E0.3
million.
e. Assets pledged
Assets pledged, as at 30.6.2017 are analyzed as follows:
• Deposits pledged amounting to E 0.8 billion concerning the Group's obligation to maintain deposits in Central Banks
according to ratios determined in the respective country.
• Deposits pledged amounting to E 0.2 billion concerning guarantees provided on behalf of the Greek State.
• Deposits pledged to credit institutions amounting to E 1.1 billion which have been provided as guarantee for derivative
transactions.
• Deposits pledged to credit institutions amounting to E 0.04 billion which have been provided for Letter of Credit or
Guarantee Letters issued by the Bank in order to facilitate clients' imports.
• Deposits of E 6.2 million were pledged to the Resolution Fund as irrevocable payment commitment for a part of 2016 and
2017 contribution. The commitment has to be fully secured by cash as decided by the Single Resolution Board.
• Loans and advances to customers:
i. an amount of nominal value of E 20.7 billion pledged to Central Banks for liquidity purposes.
ii. a carrying amount of E 3.3 billion which relates to corporate, consumer loans, receivables from finance lease
agreements and credit cards has been securitized for the issuance of the Group's special purpose entities' bonds of a
nominal value of E 4.2 billion, which are held by the Bank and pledged to Central Banks for liquidity purposes, whilst an
amount of E 3.8 billion has been given for purposes of raising funding and an amount of E0.37 billion has been given as
collateral for repurchase agreements (repo).
iii. a carrying amount of E 0.5 billion, which relates to shipping loans, has been securitized for the purpose of financing
the Group through a Special Purpose Entitiy, which amounts to E 0.2 billion at 30.6.2017.
iv. a carrying amount of E 0.6 billion which relates to corporate loans have been securitized for the issuance of the
Group's special purpose entitie's bonds, which amounts to E 0.6 billion on 30.6.2017, out of which amount E 0.3 billion is
held by the Bank.
v. an amount of nominal value of E 0.2 billion has been pledged for other loan facilities.
• Securities held for trading and investment securities portfolio:
i. An amount of nominal value of E 3.89 billion of Greek Government securities, of which a nominal amount of E 3.34
billion has been pledged to Central Banks for liquidity purposes, of a nominal amount of E 0.01 billion has been pledged
for other loan facilities, whilst a nominal amount of E 0.54 billion has been given as collateral for repurchase agreements
(repo).
The above include an amount of nominal value E 0.06 billion which relates to Greek Government securities received as
collateral for reverse repos.
ii. An amount of nominal value of E 1.71 billion relates to securities issued by the European Financial Stability Facility
(EFSF) that : a) they were attributed to the Bank by the HFSF in the context of its participation to the Banks share
capital increase that was completed on 6.6.2013, b) they were attributed to the Bank by the HFSF in order to cover the
difference between the values of assets and liabilities transferred from Cooperative Banks, (c) they have been acquired in
the secondary market and (d) they have been acquired in the context of the implementation of shortterm measures for public
debt relief, out of which an amount of nominal value of E 0.66 billion has been pledged to Central Banks with the purpose
to participate in main refinancing operations and an amount of nominal value of E 1.05 billion has been given as collateral
for repurchase agreements (repo).
iii. An amount of E 0.21 billion of other corporate securities has been given as a collateral of repo agreements.
iv. An amount of E 0.08 billion which relates to bonds issued by third parties, has been given to Central Banks for
liquidity purposes.
v. An amount of E 16.2 million of other government bonds has been pledged as a collateral for repurchase agreements
(repo).
20. 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 %
30.6.2017 31.12.2016
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 Srbija A.D. (28e,28l) Serbia 100.00
5. 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
Name Country Group's ownership interest %
30.6.2017 31.12.2016
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. (28b) Greece 100.00 100.00
Real estate and hotel
1. Alpha Astika Akinita Α.Ε. Greece 93.17 93.17
2. Oceanos Α.Τ.Ο.Ε.Ε. Greece 100.00 100.00
3. Emporiki Development and Real Estate Management Α.Ε (28o) Greece 100.00 100.00
4. Alpha Real Estate D.O.O. Beograd Serbia 93.17 93.17
5. Alpha Real Estate Bulgaria E.O.O.D. Bulgaria 93.17 93.17
6. Chardash Trading E.O.O.D. Bulgaria 93.17 93.17
7. Alpha Real Estate Services S.R.L. Romania 93.17 93.17
8. Alpha Investment Property Chalandriou Α.Ε. (28j) Greece 100.00 100.00
9. Alpha Investment Property Attikis Α.Ε. Greece 100.00 100.00
10. Alpha Investment Property Attikis II Α.Ε. Greece 100.00 100.00
11. Alpha Investment Property Amarousion Ι Α.Ε. (28j) Greece 100.00 100.00
12. Alpha Investment Property Amarousion ΙI Α.Ε.(28j) Greece 100.00 100.00
13. AGI-RRE Participations 1 S.R.L. Romania 100.00 100.00
14. AGI-BRE Participations 1 E.O.O.D. (28p) Bulgaria 100.00
15. Stockfort Ltd Cyprus 100.00 100.00
16. Romfelt Real Estate S.A. Romania 98.86 98.86
17. AGI-RRE Zeus S.R.L. Romania 100.00 100.00
18. AGI-RRE Athena S.R.L. (28q) * Romania 100.00
19. AGI-RRE Poseidon S.R.L. Romania 100.00 100.00
20. AGI-RRE Hera S.R.L. Romania 100.00 100.00
21. AGI-BRE Participations 2 E.O.O.D. Bulgaria 100.00 100.00
22. AGI-BRE Participations 2BG E.O.O.D. Bulgaria 100.00 100.00
23. AGI-BRE Participations 3 E.O.O.D. Bulgaria 100.00 100.00
24. AGI-BRE Participations 4 E.O.O.D. Bulgaria 100.00 100.00
25. APE Fixed Assets Α.Ε. Greece 72.20 72.20
26. SC Cordia Residence S.R.L. Romania 100.00 100.00
27. ΗΤ-1 E.O.O.D. Bulgaria 100.00 100.00
28. AGI-RRE Venus S.R.L.(28q) * Romania 100.00
29. AGI-RRE Cleopatra S.R.L. (26s) Romania 100.00 100.00
30. AGI-RRE Hermes S.R.L. ** Romania 100.00 100.00
31. SC Carmel Residential S.R.L. Romania 100.00 100.00
32. Alpha Investment Property Neas Kifisias Α.Ε. (28j) Greece 100.00 100.00
33. Alpha Investment Property Kallirois Α.Ε. Greece 100.00 100.00
34. Alpha Investment Property Livadias Α.Ε. Greece 100.00 100.00
35. AGI-SRE Ariadni DOO (28r) Serbia 100.00
---------------------------------------
* The companies are deleted from the Company Register.
** The company does not have financial activity.
Name Country Group's ownership interest %
30.6.2017 31.12.2016
Real estate and hotel (continue)
36. Asmita Gardens SRL Romania 100.00 100.00
37. Alpha Investment Property Kefalariou Α.Ε. (26a, 26f) Greece 54.17 100.00
38. Ashtrom Residents S.R.L. Romania 100.00 100.00
39. AGI-BRE Participations 5 E.O.O.D. * Bulgaria 100.00 100.00
40. Cubic Center Development S.A. Romania 100.00 100.00
41. Alpha Investment Property Neas Erythreas Α.Ε. Greece 100.00 100.00
42. Alpha Investement Property Chanion AE (former Anaplasi Plagias AE) (28j) * Greece 100.00 100.00
43. AGI-SRE Participations 1 DOO Serbia 100.00 100.00
44. Alpha Investment Property Spaton AE (28k) Greece 100.00
45. TH Top Hotels S.R.L. (28s) Romania 97.50
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 (28a, 28f, 28j, 28k) Cyprus 100.00 100.00
4. Ionian Holdings Α.Ε. Greece 100.00 100.00
5. Ionian Equity Participations Ltd 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 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. Alpha Proodos DAC Ireland
16. AGI - RRE Athena Ltd Cyprus 100.00 100.00
17. AGI - RRE Poseidon Ltd Cyprus 100.00 100.00
18. AGI - RRE Hera Ltd Cyprus 100.00 100.00
19. Umera Ltd Cyprus 100.00 100.00
20. AGI-BRE Participations 2 Ltd Cyprus 100.00 100.00
21. AGI-BRE Participations 3 Ltd Cyprus 100.00 100.00
22. AGI-BRE Participations 4 Ltd Cyprus 100.00 100.00
23. Alpha Real Estate Services LLC Cyprus 93.17 93.17
24. AGI-RRE Ares Ltd Cyprus 100.00 100.00
25. AGI-RRE Venus Ltd Cyprus 100.00 100.00
26. AGI-RRE Artemis Ltd Cyprus 100.00 100.00
27. AGI-BRE Participations 5 Ltd Cyprus 100.00 100.00
28. AGI-RRE Cleopatra Ltd Cyprus 100.00 100.00
29. AGI-RRE Hermes Ltd Cyprus 100.00 100.00
30. AGI-RRE Arsinoe Ltd Cyprus 100.00 100.00
31. AGI-SRE Ariadni Ltd Cyprus 100.00 100.00
32. Zerelda Ltd Cyprus 100.00 100.00
33. AGI-Cypre Alaminos Ltd Cyprus 100.00 100.00
34. AGI-Cypre Tochni Ltd Cyprus 100.00 100.00
35. AGI-Cypre Evagoras Ltd Cyprus 100.00 100.00
36. AGI-Cypre Tersefanou Ltd Cyprus 100.00 100.00
37. AGI-Cypre Mazotos Ltd Cyprus 100.00 100.00
38. AGI-Cypre Ermis Ltd (28h) Cyprus 100.00 100.00
39. AGI-SRE Participations 1 Ltd Cyprus 100.00 100.00
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
Name Country Group's ownership interest %
30.6.2017 31.12.2016
Other companies (continue)
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