REG - Alpha Bank A.E. - Half-year Report <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 6
30/08/2016 18:25
- Part 6: For the preceding part double click ID:nRSd4619Ie
joint ventures 39,244
Other assets 2
Other assets held for sale 126,688
LIABILITIES
Liabilities of current income tax and other taxes 30
Defined benefit obligations 301
Other liabilities 7
Total liabilities related to assets held for sale 338
Amounts recognized directly in equity for held for sale items (122)
Non-controlling interests for held for sale items 10,992
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 4.9 million (31.12.2015:
E 4.9 million) thereby total amount of Assets held for sale of the Group as at 30.6.2016 amounts to E 282,429 (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.
27. Corporate events
a. On 26.1.2016 the Bank participated in the establishment of Aktua Hellas Holding SA, which is based in Greece with a
participation of 45% and share capital of E 25 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
E 51 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 E 57.82 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 E 19.99
million, E 13.19 million, E 22.64 million, E 1 million and E 1 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 E 100 thousand.
f. On 1.3.2016 the transfer of Alpha Bank Bulgaria Branch operations in Eurobank Bulgaria AD, a subsidiary of Eurobank
Ergasias AE was completed.
g. On 22.4.2016 the Bank participated in the share capital increase of the joint venture Aktua Hellas Holding S.A., with
the amount of E 45 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 E 1 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 E 11.9 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 Srl by contributing E 2 million.
m. On 8.6.2016 the subsidiary of the Group AGI-SRE Participations 1 Ltd, founded the company AGI-SRE Participations 1 DOO,
based in Serbia, for an amount of E 1.
28. 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 Skopje as a discontinued operation (note 26).
Below are restated statements of income and cash flows for the period 1.1 - 30.6.2015 based on these modifications.
Consolidated Income Statement
(Amounts in thousands of Euro)
From 1 January to 30.6.2015
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 Branchtransfer terms Restatements due to presentation of Alpha Bank Skopje as discontinued operation Restated
amounts
Interest and similar income 1,525,180 1,643 (2,384) 1,524,439
Interest expense and similar charges (568,075) 530 (567,545)
Net interest income 957,105 1,643 (1,854) 956,894
Fee and commission income 195,868 (800) (557) 194,511
Commission expense (32,996) (621) 270 (33,347)
Net fee and commission income 162,872 (1,421) (287) 161,164
Dividend income 560 (15) 545
Gains less losses on financial transactions 36,253 (291) 35,962
Other income 31,497 (873) (48) 30,576
68,310 (873) (354) 67,083
Total income 1,188,287 (2,294) 1,643 (2,495) 1,185,141
Staff costs (264,841) 1,370 (263,471)
General administrative expenses (240,780) 2,294 1,157 (237,329)
Depreciation and amortization (51,746) 209 (51,537)
Other expenses (2,368) 160 (2,208)
Total expenses (559,735) 2,294 2,896 (554,545)
Impairment losses and provisions to cover credit risk (2,097,187) (1,838) 183 (2,098,842)
Share of profit/(loss) of associates and joint ventures (3,987) (3,987)
Profit/(loss) before income tax (1,472,622) - (195) 584 (1,472,233)
Income tax 309,429 (71) 309,358
Net profit/(loss) after income tax (1,163,193) - (195) 513 (1,162,875)
Net profit/(loss) after income tax from discontinued operations (88,890) 195 (513) (89,208)
Net profit/(loss) after income tax (1,252,083) - - - (1,252,083)
Profit/(loss) attributable to:
Equity owners of the Bank
- from continuing operations (1,163,360) (195) 513 (1,163,042)
- from discontinued operations (88,890) 195 (513) (89,208)
(1,252,250) - - - (1,252,250)
Non-controlling interests 167 167
Earnings/(losses) per share:
Basic and diluted (E per share) (0.10) (4.90)
(Amounts in thousands of Euro)
From 1 April to 30.6.2015
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 Branchtransfer terms Restatements due to presentation of Alpha Bank Skopje as discontinued operation Restated
amounts
Interest and similar income 763,610 905 (1,128) 763,387
Interest expense and similar charges (281,700) 241 (281,459)
Net interest income 481,910 905 (887) 481,928
Fee and commission income 96,941 (270) (291) 96,380
Commission expense (18,830) (295) 141 (18,984)
Net fee and commission income 78,111 (565) (150) 77,396
Dividend income 535 (15) 520
Gains less losses on financial transactions 10,177 (172) 10,005
Other income 17,364 (383) 23 (25) 16,979
28,076 (383) 23 (212) 27,504
Total income 588,097 (948) 928 (1,249) 586,828
Staff costs (130,578) 690 (129,888)
General administrative expenses (122,085) 948 651 (120,486)
Depreciation (26,024) 103 (25,921)
Other expenses (1,302) (22) 13 (1,311)
Total expenses (279,989) 948 (22) 1,457 (277,606)
Impairment losses and provisions to cover credit risk (1,672,282) (582) 168 (1,672,696)
Share of profit/(loss) of associates and joint ventures (1,997) (1,997)
Profit/(loss) before income tax (1,366,171) - 324 376 (1,365,471)
Income tax 318,621 (42) 318,579
Net profit/(loss) after income tax (1,047,550) - 324 334 (1,046,892)
Net profit/(loss) after income tax from discontinued operations (88,695) (324) (334) (89,353)
Net profit/(loss) after income tax (1,136,245) - - - (1,136,245)
Profit/(loss) attributable to:
Equity owners of the Bank
- from continuing operations (1,047,581) 324 334 (1,046,923)
- from discontinued operations (88,695) (324) (334) (89,353)
(1,136,276) - - - (1,136,276)
Non-controlling interests 31 31
Earnings/(losses) per share:
Basic and diluted (E per share) (0.09) (4.45)
Consolidated Statement of Cash Flows
(Amounts in thousands of Euro)
From 1 January to 30.6.2015
Published amounts Finalization of Alpha Bank Bulgaria transfer terms Restatements due to presentation of Alpha Bank Skopje as discontinued operation Restated amounts from discontinued operations
Cash flows from continuing operating activities
Profit / (loss) before income tax (1,472,622) (195) 584 (1,472,233)
Adjustments for gain/(losses) before income tax for:
Depreciation/Impairment of fixed assets 29,236 (122) 29,114
Amortization/Impairment of intangible assets 22,510 (87) 22,423
Impairment losses from loans, provisions and staff leaving indemnity 2,141,155 (338) 2,140,817
(Gains)/losses from investing activities 34,524 34,524
(Gains)/losses from financing activities 54,269 54,269
(Gains)/losses ratio from associates and joint ventures 3,987 3,987
813,059 (195) 37 812,901
Net (increase)/decrease in assets relating to continuing operating activities:
Due from banks 870,781 (3,668) 867,113
Trading securities and derivative financial assets 217,710 217,710
Loans and advances to customers (848,257) 195 (1,702) (849,764)
Other assets (90,138) 30 (90,108)
Net increase/(decrease) in liabilities relating to continuing operating activities:
Due to banks 11,092,319 20 11,092,339
Derivative financial liabilities (58,901) (58,901)
Due to customers (11,644,659) 11,673 (11,632,986)
Other liabilities (67,871) 182 (67,689)
Net cash flows from continuing operating activities before taxes 284,043 - 6,572 290,615
Income taxes and other taxes paid (30,601) (30,601)
Net cash flows from continuing operating activities 253,442 - 6,572 260,014
Net cash flows from discontinued operating activities 17,123 (6,572) 10,551
Cash flows from continuing investing activities
Investments in subsidiaries and associates (344) (344)
Acquisitions during the period 9,151 9,151
Income from subsidiary disposal 15,392 15,392
Dividends received 560 560
Purchases of fixed and intangible assets (42,738) 46 (42,692)
Disposals of fixed and intangible assets 6,318 6,318
Net (increase)/decrease in investement securities (248,452) (6,801) (255,253)
Net cash flows from continuing investing activities (260,113) - (6,755) (266,868)
Net cash flows from discontinued investing activities 178 6,755 6,933
Cash flows from continuing financing activities -
Repayments of debt securities in issue and other borrowed funds (89,451) (89,451)
(Purchases)/sales of hybrid securities (467) (467)
Net cash flows from continuing financing activities (89,918) - - (89,918)
Effect of exchange rate differences on cash and cash equivalents 1,843 1,843
Net increase/(decrease) in cash flows - continuing activities (94,746) - (183) (94,929)
Net increase/(decrease) in cash flows - discontinued activities 17,301 183 17,484
Cash and cash equivalents at the beginning of the period 1,194,244 1,194,244
Cash and cash equivalents at the end of the period 1,116,799 1,116,799
During the current period the Group completed the valuation of the net assets of Asmita Gardens SRL, which the Group
acquired in the second quarter of 2015. The adjustments to the temporary fair values were recognized retrospectively as if
the accounting treatment of the acquisition had been completed at the acquisition date. Therefore on 31.12.2015 the figures
of the Balance Sheet were modified as depicted below:
Interim Consolidated Balance Sheet
(Amounts in thousands of Euro)
31.12.2015
Published amounts Finalization of the accounting treatment of Asmita Gardens SLR Restated
amounts
ASSETS
Cash and balances with Central Banks 1,730,327 1,730,327
Due from banks 1,976,273 1,976,273
Trading securities 2,779 2,779
Derivative financial assets 793,015 793,015
Loans and advances to customers 46,186,116 46,186,116
Investment securities
- Available for sale 5,794,484 5,794,484
- Held to maturity 79,709 79,709
- Loans and receivables 4,289,482 4,289,482
Investments in associates and joint ventures 45,771 45,771
Investment property 623,662 623,662
Property, plant and equipment 860,901 860,901
Goodwill and other intangible assets 342,251 2,900 345,151
Deferred tax assets 4,398,176 4,398,176
Other assets 1,510,225 (1,592) 1,508,633
68,633,171 1,308 68,634,479
Assets held for sale 663,063 663,063
Total Assets 69,296,234 1,308 69,297,542
LIABILITIES
Due to banks 25,115,363 25,115,363
Derivative financial liabilities 1,550,529 1,550,529
Due to customers (including debt securities in issue) 31,434,266 31,434,266
Debt securities in issue and other borrowed funds 400,729 400,729
Liabilities of current income tax and other taxes 38,192 38,192
Deferred tax liabilities 20,852 20,852
Employee defined benefit obligations 108,550 108,550
Other liabilities 910,622 1 910,623
Provisions 296,014 2,444 298,458
59,875,117 2,445 59,877,562
Liabilities related to assets held for sale 366,781 366,781
Total Liabilities 60,241,898 2,445 60,244,343
EQUITY
Equity attributable to equity owners of the Bank
Share capital 461,064 461,064
Share premium 10,790,870 10,790,870
Reserves 301,223 (1,137) 300,086
Amounts recognized directly in equity for held for sale items 8,834 8,834
Retained earnings (2,546,885) (2,546,885)
9,015,106 (1,137) 9,013,969
Non-controlling interests 23,998 23,998
Hybrid securities 15,232 15,232
Total Equity 9,054,336 (1,137) 9,053,199
Total Liabilities and Equity 69,296,234 1,308 69,297,542
29. Events after the balance sheet date
a. 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 SA 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.
b. On 22.7.2016 the Bank covered, proportionally to its share, the increase in the share capital of the joint venture Aktua
Hellas Holding SA, by paying the amount of E 570 thousand.
c. On 29.7.2016 the Bank's subsidiary, Alpha Group Investments Ltd, acquired the 50% of shares of the company AEP Elaiona,
for an amount of E 11.9 million.
d. 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 E 90 thousand.
e. Following the evaluation of the Binding Offers, submitted by investors in the context of a process to acquire the
majority stake in the share capital of Ioniki Hotel Enterprises ΑΕ, on 5.8.2016 it was announced by the Group that a
consortium comprised of Tourism Enterprises of Messinia S.A. and D-Marine Investments Holding B.V. was selected as the
preferred bidder. Alpha Bank has entered into exclusive discussions with the preferred bidder for the completion of the
Process.
f. On 22.8.2016 the Bank proceeded to the acquisition of 97.27% of shares of Ioniki Hotel Enterprises Α.Ε. 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.
Athens, 30 August 2016
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 VASILEIOS E. PSALTISID No ΑΙ 666591 MARIANNA D. ANTONIOUID No Χ 694507
Interim Financial Statements as at 30.6.2016
Interim Income Statement
(Amounts in thousands of Euro)
From 1 January to
Note 30.6.2016 30.6.2015*
Interest and similar income 1,217,793 1,323,095
Interest expense and similar charges (394,512) (538,633)
Net interest income 823,281 784,462
Fee and commission income 152,019 158,797
Commission expense (20,210) (27,886)
Net fee and commission income 131,809 130,911
Dividend income 2 75,756 1,123
Gains less losses on financial transactions 3 48,850 (29,780)
Other income 5,111 8,728
129,717 (19,929)
Total income 1,084,807 895,444
Staff costs (197,364) (200,018)
General administrative expenses 4 (194,496) (185,532)
Depreciation and amortization (35,276) (34,144)
Other expenses (7,677) (1,685)
Total expenses (434,813) (421,379)
Impairment losses and provisions to cover credit risk 5 (520,732) (1,966,693)
Negative goodwill from the acquisition of Diners 26 48,237
Profit/(Loss) before income tax 129,262 (1,444,391)
Income tax 6 (4,720) 335,829
Profit/(Loss) after income tax from continuing operations 124,542 (1,108,562)
Profit/(Loss) after income tax from discontinued operations 25 233 (89,319)
Profit/(loss), after income tax 124,775 (1,197,881)
Earnings/(losses) per share:
Basic and diluted (E per share) 7 0.08 (4.69)
Basic and diluted from continuing operations (E per share) 7 0.08 (4.34)
Basic and diluted from discontinued operations (E per share) 7 0.0002 (0.3497)
* The figures for the comparative period for the Interim Income Statement have been restated due to modification of
the presentation of figures related to the loyalty Bonus card program and the finalization of the Bank's Branch in Bulgaria
transfer terms (note 28).
Interim Balance Sheet
(Amounts in thousands of Euro)
Note 30.6.2016 31.12.2015
ASSETS
Cash and balances with Central Banks 707,286 698,730
Due from banks 3,371,308 3,406,859
Trading securities 9 1,234 1,888
Derivative financial assets 841,878 794,471
Loans and advances to customers
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