REG - Alpha Bank A.E. - Half-year Report <Origin Href="QuoteRef">ACBr.AT</Origin> - Part 9
30/08/2016 18:25
- Part 9: For the preceding part double click ID:nRSd4619Ih
hierarchy Levels at the end of each quarter.
Within the period, corporate bond of E 229.4 million were transferred from Level 2 to Level 1 due to the satisfaction of
the criteria of active market. In addition, within the period, E 233.3 million of Greek corporate bonds were transferred
from Level 1 to Level 2, as the liquidity margin (bid-ask spread) moved above the limit set for the characterization of
market as active.
The table below presents the valuation methods used for the measurement of Level 3 fair value:
30.6.2016
Total Fair Value Fair Value Valuation Method Significant non-observable inputs
Derivative Financial Assets 6,913 6,689 Discounted cash flows with interest rates, taking into account the credit risk of the counterparty The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model
224 Discounted cash flows with interest rates Assessment of the adequacy of reserves for the payment of hybrid securities dividends
Available for sale bonds 39,342 39,342 Based on issuer price / Adjusted market prices due to low trading / Discounted cash flows estimating credit risk Price / Adjusted price / Credit spread
Available for sale shares 13,387 13,387 Discounted cash flows / Multiples valuation method / Net assets method / Cost of acquisition Future profitability of the issuer
Derivative Financial Liabilities 1,571 1 Discounted cash flows with interest rates Valuation of reserve adequacy for payment of hybrid securities' dividends
1,570 Discounted cash flows with interest rates taking into account the credit risk The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model
Convertible bond loan 15,300 15,300 Discounted cash flows / Multiples valuation method Future profitability of the issuer
31.12.2015
Total Fair Value Fair Value Valuation Method Significant non-observable inputs
Derivative Financial Assets 3,530 3,185 Discounted cash flows with interest rates, taking into account the credit risk of the counterparty The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model
345 Discounted cash flows with interest rates Assessment of the adequacy of reserves for the payment of hybrid securities dividends
Available for sale bonds 19,460 19,460 Based on issuer price Price
Available for sale shares 12,803 12,803 Discounted cash flows / Multiples valuation method / Cost of acquisition Future profitability of the issuer
Convertible bond loan 24,600 24,600 Discounted cash flows / Multiples valuation method Future profitability of the issuer
A reconciliation of the movement of financial instruments measured at fair value in Level 3 is depicted below.
30.6.2016
Assets Liabilities
Available for sale securities Derivative Financial Assets Derivative Financial Liabilities ConvertibleBond Loan
Opening balance 1.1.2016 32,263 3,530 (24,600)
Total gain or loss recognized in the income statement (131) (112) (1) 9,300
Total gain or loss recognized directly in equity 3,086
Purchases/issues 335
Sales/repayments/settlements (773) (177)
Transfers to Level 3 from Level 2 17,949 3,672 (1,570)
Balance 30.6.2016 52,729 6,913 (1,571) (15,300)
Amounts included in the income statement and relate to financial instruments included in the balance sheet at the end of the reporting period (131) (112) 1 9,300
Within the period, a subordinated security of E 17.9 million was transferred from Level 2 to Level 3, for which market
prices adjusted due to the low volume of transactions. In addition, E 3.7 million of derivative financial Assets and E 1.6
million of derivative financial Liabilities were transferred from Level 2 to Level 3, since the use of non-observable
inputs was significant.
31.12.2015
Assets Liabilities
Available for sale securities Derivative Financial Assets Derivative Financial Liabilities ConvertibleBond Loan
Opening balance 1.1.2015 34,756 39 (5,432) -
Total gain or loss recognized in the income statement (738) 811 5,360
Total gain or loss recognized directly in equity (1,248)
Purchases/issues 7,622
Sales/repayments/settlements (8,186) 20
Transfers to Level 3 from Level 2 3,034
Balance 30.06.2015 32,206 3,884 (52) -
Changes for the period 1.7 - 31.12.2015
Total gain or loss recognized in the income statement (6,290) 1,716 52
Total gain or loss recognized directly in equity 1,598
Purchases/issues 5,000
Sales/repayments/settlements (262)
Transfers to Level 3 from Level 2 11 (2,070) (24,600)
Balance 31.12.2015 32,263 3,530 - (24,600)
Amounts included in the income statement and relate to financial instruments included in the balance sheet at the end of the reporting period 1.1 - 30.6.2015 (861) (1,169) (52)
During 2015, corporate bonds amounting to E 11.6 million as well as other securities amounting to E 1 million that were
classified in Level 3, were purchased since non observable parameters were used for valuation purposes.
In addition, sales-repayments of foreign corporate bonds amounting to E 7.9 million and other securities amounting to E 0.5
million took place.
Regarding derivative financial assets, a transfer from Level 2 to Level 3 occurred since the use of non-observable inputs
was significant.
Finally within 2015 the convertible bond loan was transferred from Level 2 to Level 3 as a different valuation method was
applied.
Sensitivity analysis for Level 3 financial instruments that its valuation was based on non observable data is presenting in
the following table:
Significant Significant Total effect in Income Statement Total effect
non-observable inputs non-observable in Equity
inputs change
Favourable Variation Unfavourable Variation Favourable Variation Unfavourable Variation
Derivative Financial Assets The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model Increase the probability of default through reduction of internal ratings by 2 grades / Increase the loss given default by 10% (752) (752)
Assessment of the adequacy of reserves for the payment of hybrid securities dividends Increase the probability of dividend payments to 100% (223) (223)
Available for sale bonds Issuer price / Adjustment due to low trading / Credit spread Variation +/-10% 859 (836)
Available for sale shares Future profitability of the Issuer Variation +/- 10% in P/B and EV/Sales ratios (multiples valuation method) (163) 568 (568)
Derivative Financial Liabilities Assessment of the adequacy of reserves for the payment of hybrid securities dividends Increase the probability of dividend payments to 100% 1 1
The probability of default and the loss given default of the counterparty (BCVA adjustment) are calculated with the use of an internal model The BCVA adjustment is calculated on the net exposure per counterparty and is allocated to derivative financial assets
Convertible bond Loan Future profitability of the Issuer Alpha Bank share price in the range of E1.5-2.5 5,073 (1,745) 5,073 (1,745)
Total 5,074 (2,883) 6,501 (4,124)
23. Capital adequacy
The Bank's policy is to maintain a robust capital base to safeguard the Bank's development and retain the trust of
depositors, shareholders, markets and business partners.
Share capital increases are performed after Shareholders' General Meeting or Board of Directors' decisions in accordance
with the articles of association or the relevant laws.
Treasury shares are allowed to be purchased based on the terms and conditions of law.
The capital adequacy is supervised by Single Supervising Mechanism of ECB, to which reports are submitted on a quarterly
basis. The minimum requirements regarding Tier I ratio and the capital adequacy ratio of the Bank are stipulated by Bank of
Greece Governor's Acts.
Capital adequacy ratio compares regulatory capital with the risks assumed by the Bank (risk-weighted assets). Regulatory
capital includes Tier I capital (share capital, reserves and non-controlling interests), additional Tier I capital (hybrid
securities) and Tier II capital (subordinated debt). Risk-weighted assets include the credit risk of the investment
portfolio, the market risk of the trading portfolio and operational risk.
Since January 1, 2014 EU Directive 2013/36/EU dated 26 June 2013 incorporated into Law 4261/2014 along with the EU
Regulation 575/2013/EU, dated 26 June 2013 "CRD IV" came into force which gradually introduce the new capital adequacy
framework (Basel III) for credit institutions.
According to the above regulatory framework, for the calculation of capital adequacy ratio the effective transitional
arrangements are followed.
Moreover:
• besides the 8% Capital Adequacy Limit, there are limits of 4.5% for Common Equity ratio and 6% for Tier I ratio, and
• is required the maintenance of capital buffers additional to the Common Equity Capital, from 01.01.2016 and gradually
until 31.12.2019.
In particular:
• from 1.1.2016 a capital buffer of 0.625% exists which will gradually rise to 2.5% on 31.12.2019.
• The Bank of Greece through the acts issued by the Executive Committee settled the following capital buffers:
- Countercyclical capital buffer rate for the first nine months of 2016, "zero percent" (Act 55/18.12.2015, 83/18.03.2016
& 97/16.6.2016).
- Other systemically important institutions (O-SII) buffer for 2016 "zero percent" (Act 56/18.12.2015).
These limits should be met both on a standalone and on a consolidated basis.
30.6.2016 31.12.2015
(estimate)
Common Equity Tier I 17.3% 17.0%
Tier I 17.3% 17.0%
Capital adequacy ratio 17.3% 17.1%
24. Related - party transactions
The Bank enters into a number of transactions with related parties in the normal course of business. These transactions are
performed at arms length and are approved by the Bank's committees.
a. The outstanding balances of the Bank's transactions with key management personnel consisting of members of the Bank's
Board of Directors and Executive Committee, their close family members and the entities controlled by them, as well as, the
results related to these transactions are as follows:
30.6.2016 31.12.2015
Assets
Loans and advances to customers 10,001 11,460
Liabilities
Due to customers 14,049 13,418
Employee defined benefit obligations 221 453
Total 14,270 13,871
Letters of guarantee and approved limits 10,931 11,689
From 1 January to
30.6.2016 30.6.2015
Income
Interest and similar income 50 138
Fee and commission income 67 69
Total 117 207
Expenses
Interest expense and similar charges 28 132
Fees paid to key management and close family members 1,753 1,691
Total 1,781 1,823
b. The outstanding balances with the Bank's subsidiaries, joint ventures and associates as well as the results related to
these transactions are as follows:
i. Subsidiaries
30.6.2016 31.12.2015
Assets
Due from banks 1,622,107 1,959,026
Derivative financial assets 2,723 1,462
Loans and advances to customers 3,204,382 3,184,277
Available for sale securities 335,068 302,442
Other assets 72,776 2,690
Total 5,237,056 5,449,897
Liabilities
Due to banks 440,263 67,650
Due to customers 1,060,912 1,027,650
Derivative financial liabilities 14,687 6,077
Debt securities in issue and other borrowed funds 272,803 328,039
Other liabilities 5,688 58,108
Total 1,794,353 1,487,524
Letters of guarantee and other guarantees 795,351 773,629
In addition to the financing of the Bank's subsidiaries companies, guarantees have been given from the Bank for bonds
issued by subsidiaries amounted to E 15,542 on 30.6.2016 (31.12.2015: E 15,542).
From 1 January to
30.6.2016 30.6.2015
Income
Interest and similar income 34,777 52,065
Fee and commission income 6,743 8,225
Dividend income 75,307
Gains less losses on financial transactions 1,096
Other income 1,955 1,905
Total 119,878 62,195
Expenses
Interest expense and similar charges 10,831 47,703
Commission expense 1,289 1,149
Gains less losses on financial transactions 30,639
General administrative expenses 6,604 7,630
Total 18,724 87,121
ii. Joint ventures
30.6.2016 31.12.2015
Assets
Loans and advances to customers 154,660 158,665
Other assets 4
Total 154,664 158,665
Liabilities
Due to customers 21,016 21,257
From 1 January to
30.6.2016 30.6.2015
Income
Interest and similar income 2,851 2,846
Fee and commission income 1 2
Other income 5 9
Total 2,857 2,857
Expenses
Interest expense and similar charges 86 152
iii. Associates
30.6.2016 31.12.2015
Assets
Loans and advances to customers 3,044 3,044
Liabilities
Due to customers 348 201
From 1 January to
30.6.2016 30.6.2015
Income
Interest and similar income 5 5
c. The Employees Supplementary Fund maintains deposits with the Bank amounting to E 2,345 (31.12.2015: E 4,590). Periods'
Interest expense related to deposits amounts to E 16. In addition the Supplementary Fund's assets include Alpha Bank's
shares of E 114 (31.12.2015: E 114).
d. The Hellenic Financial Stability Fund (HFSF) exercises significant influence on the Bank. In particular, according to
Law 3864/2010 and the Relationship Framework Agreement("RFA") as of 23.11.2015, which replaced the previous of 2013, HFSF
has representation in the Board of Directors and in other significant Committees of the Bank. Therefore, according to IAS
24, HFSF and its related entities are considered related parties for the Bank.
The outstanding balances and the results related to these transactions are analyzed as follows:
From 1 January to
30.6.2016 30.6.2015
Income
Fee and commission income 5 34
25. Assets held for sale and discontinued operations
The Bank, under the approved by the European Committee Restructuring Plan (note 39 of the financial statements as of
31.12.2015) and the fulfillment of the relevant commitment relating to the deleveraging of part of the assets of its
international activities, proceeded to the sale of the operations of the Bulgaria Branch and Alpha Bank AD Skopje as well
as it began the process for the sale of APE Fixed Assets AE, APE Commercial Property AE and APE Investment Property AE.
Bank's branch in Bulgaria
On 17.7.2015, the Bank and Eurobank, issued a joint statement, announcing their agreement, in main terms, for the transfer
of operations of the Bulgaria branch to Eurobank's subsidiary in Bulgaria (PostBank). On 6.11.2015 the Bank and Postbank
signed the relevant contract, finalizing the terms of the transfer which include a transfer price of 1 Euro and a partial
undertaking of Branch's debt obligations by the buyer. The transfer was completed on 1.3.2016.
From 30.6.2015 the assets of Bulgaria Branch, and its directly related liabilities, met the qualification requirements as
"Held for sale" in accordance with IFRS 5, as at that date the management had decided to sell the unit and was already in
the process of negotiations with the prospective buyer. In addition, the Bulgaria Branch is considered a separate
geographical area of operations for the Bank which is included in the South Eastern Europe for information purposes per
operating segment. After the classification of the Bulgarian Branch, which is the only company in the banking sector
whereby the Bank operates in Bulgaria, as asset held for sale, its activities are classified as "discontinued operations"
by the Bank.
Therefore, on 31.12.2015 for reporting purposes, the Bank valued the assets and liabilities of Bulgaria Branch at the
lowest price between the book value and fair value less selling costs recognizing the difference which was amounted to
E 34,007 as loss in the caption "Profit/(loss) after tax income from discontinued operations" in the Income Statement. It
is noted that the valuation difference at fair value is different from the amount of E 85,500 that was recognized during
the second and the third quarter of 2015, based on the final terms of the sale, as reflected at the contract of 6.11.2015.
After the above valuation, the assets of the Branch as at 31.12.2015 amounted to E 444,401 and the liabilities of the
Branch amounted to E 338,820.
Income Statement and Statement of Comprehensive Income
The following table presents the results of the Bulgaria Branch for the period from 1.1.2016 to the disposal date. It is
noted that the results and cash flows arising from the Bulgaria Branch are presented as "discontinued operations" in both
the Income Statement and the Statement of Cash Flows, with a corresponding restatement of the comparative period 1.1.2015
untill 30.6.2015.
(Amounts in thousands of Euro)
From 1 January to
30.6.2016 30.6.2015
Interest and similar income 3,123 13,613
Interest expense and similar charges (592) (4,004)
Net interest income 2,531 9,609
Fee and commission income 841 3,276
Commission expense (74) (200)
Net fee and commission income 767 3,076
Gains less losses on financial transactions 64 277
Other income 78 188
142 465
Total income 3,440 13,150
Staff costs (1,574) (5,055)
General administrative expenses (2,581) (7,958)
Depreciation (397) (1,474)
Other expenses (29) (18)
Total expenses (4,581) (14,505)
Impairment losses and provisions to cover credit risk 1,563 (2,464)
Profit/(Loss) before income tax 422 (3,819)
Income tax
Profit/(loss), after income tax 422 (3,819)
Difference due to valuation at fair value (85,500)
Loss from the disposal after income tax (189)
Net profit/(Loss) after income tax from discontinued operations 233 (89,319)
The amount of cash and cash equivalent of the Bulgaria Branch, which was transferred at the disposal, amounted to E 9,942.
Investment in subsidiary Alpha Bank AD Skopje
The Bank, during the fourth quarter of 2015, began the process of selling its subsidiary Alpha Bank Skopje (ABS). ABS is
the smallest subsidiary of the Group in the Balkans and it has a small presence in the local market in Skopje (market share
<2%). As part of this process, investors, which were shortlisted from a broader investor list, were invited to submit their
bids for the acquisition of the 100% of the ABS shares and of the 100% of the hybrid instrument (subordinated loan) granted
to the ABS by the parent company (both of them consist the "Perimeter Transaction"). The disposal was completed on
10.5.2016 for a total amount of E 3.2 million.
On 31.12.2015 the Bank's participation in the subsidiary and the hybrid instrument satisfy the conditions for
classification as "held for sale" in accordance with IFRS 5.
Therefore, for the preparation of 31.12.2015 financial statements the participation in the subsidiary company and the
hybrid instrument was valued at the lower of book and fair value less cost of sale, recognizing the difference amounted to
E 28,553 as a loss in gains less losses on financial transactions. The fair value was determined based on the financial
bids which were received from the potential investors for the Perimeter of the Transaction and the assessment of the Bank
for the final consideration. The final consideration does not differ from the fair value determined.
Investment in companies APE Fixed Assets ΑΕ, APE Commercial Property ΑΕ, APE Investment Property AE
Sale consultants were engaged in June of the current year and the liquidation procedure of the Bank's participations in APE
Fixed Assets AE, APE Commercial Property AE and APE Investment Property AE began. APE Fixed Assets AE is a Bank's
subsidiary, while APE Commercial Property AE and APE Investment Property AE are joint ventures, where the control is
exercised jointly by the Bank and the other shareholder.
From 30.6.2016 the abovementioned investments meet the requirements to be classified as "held for sale" in accordance with
IFRS 5, due to the fact that on that date the Management had decided their sale, had initiated an active programme to find
buyer and the sale is expected to be completed within one year.
According to IFRS 5 the assets held for sale or disposal groups are valued at the lower of book and fair value less cost of
sale and they are presented in the balance sheet separately from other assets and liabilities. 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 on 30.6.2016 losses amounting to E29.36 million arose due
to the fact that the fair value of assets held for sale was lower than the book value and they were recognized in caption
Gains less losses on financial transactions in the Income Statement.
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.
30.6.2016
Loans and advances to customers 47,570
Investments in subsidiaries, associates and joint ventures 69,530
Total assets held for sale 117,100
In addition, the Bank has classified in Assets held for sale, its participation to the companies SELONDA A.E.G.E. and
NIREUS A.E.G.E since it intends to transfer these companies in the near future. The fair value of these companies was
determined in the amount of E 1.
The Bank at each reporting date assesses the actions taken within the context of the implementations 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 1.16 of the 31.12.2015 financial statements) are met.
26. Merger of Company Diners Club Greece Α.Ε.P.P.
On 2.6.2015 completed the merger of the Bank and Diners Club through absorption of the second from the first. From the
merger a negative goodwill of E48.2 million recognized to Bank's income statement in the first semester of 2015. The terms
and accounting treatment are presented on note 43 of the Bank's annual financial statements of 31.12.2015.
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 1.3.2016 the transfer of Alpha Bank Bulgarian Branch operations in Eurobank Bulgaria AD, a subsidiary of Eurobank
Ergasias AE was completed.
e. 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.
f. On 10.5.2016 the sale of all shares of the Bank's subsidiary, Alpha Bank A.D. Skopje was completed.
g. 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.
h. 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.
28. Restatement of financial statements
During the current period the Bank 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 30.6.2015
Net fee and commission income (535) (1,421)
Other income (3,523) (873)
General administrative expenses 4,058 2,294
Total effect - -
1.7 - 31.12.2015 1.1 - 30.6.2015
Net fee and commission income 886 (1,421)
Other income (2,650) (873)
General administrative expenses 1,764 2,294
Total effect - -
Furthermore, the figures of the comparative period were restated as a result of the finalization of the Bulgaria Branch
transfer terms.
Below are restated statements of income and cash flows for the period 1.1 - 30.6.2015:
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 Restated amounts
Interest and similar income 1,321,497 1,598 1,323,095
Interest expense and similar charges (538,633) (538,633)
Net interest income 782,864 1,598 784,462
Fee and commission income 159,597 (800) 158,797
Commission expense (27,265) (621) (27,886)
Net fee and commission income 132,332 (1,421) 130,911
Dividend income 1,123 1,123
Gains less losses on financial transactions (29,780) (29,780)
Other income 9,601 (873) 8,728
(19,056) (873) (19,929)
Total income 896,140 (2,294) 1,598 895,444
Staff costs (200,018) (200,018)
General administrative expenses (187,826) 2,294 (185,532)
Depreciation and amortization (34,144) (34,144)
Other expenses (1,685) (1,685)
Total expenses (423,673) 2,294 (421,379)
Impairment losses and provisions to cover credit risk (1,964,855) (1,838) (1,966,693)
Negative goodwill from acquisitions 48,237 48,237
Profit/(loss) before income tax (1,444,151) (240) (1,444,391)
Income tax 335,829 335,829
Net profit/(loss) after income tax from continuing operations (1,108,322) - (240) (1,108,562)
Net profit/(loss) after income tax from discontinued operations (89,559) 240 (89,319)
Net profit/(loss) after income tax (1,197,881) - - (1,197,881)
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 SA, 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,
after the share capital increase, the Bank's share in the latter changed from 23.01% to 21.97%. The Bank, which identified
at zero fair value 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 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.
d. 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.
e. On 22.8.2016 the Bank proceeded to the acquisition of 97.27% of the shares of Ioniki Hotel Enterprises A.E. from the
related companies Alpha Group Investments Ltd, Ionian Equity Participations Ltd, Ionian Holdings 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
terms 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
Appendix
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 disclosed the
definitions and the calculations of the related (APMs) which are included to Board of Directors semi-annual Financial
Report.
Definition Calculation 30.6.2016 31.12.2015
The indicator reflects the relationship loans and advances to customers before impairment to due to customers Loans and advances to customers 143.7% 146.9%
Loans and Receivables to Deposit Ratio Due to Customers
Definition Calculation 30.6.2016 31.12.2015
The indicator reflects Total Expenses of the period less 48.2% 49.1%
the relationship between recurring expenses and income Non recurring expenses
of the period.
Expenses/Income Ratio Total Income of the period less
Gain less losse on financial transactions
(Amounts in million of Euro)
Definition Calculation 30.6.2016 31.12.2015
Loans and Receivables The indicator reflects the relationship loans and advances to customers before impairment to due to customers Numerator + Loans and advances to customers 45,496 46,186
to Deposit Ratio
Denominator + Due to Customers 31,667 31,434
Ratio = 143.7% 146.9%
(Amounts in million of Euro)
Definition Calculation 30.6.2016 31.12.2015
Expenses/Income Ratio The indicator reflects the relationship between recurring expenses and income of the period. Numerator + Total Expenses of the period 603 563
- Non recurring expenses 48 1
Denominator + Total Income of the period 1,211 1,180
- Gain less losse on financial transactions 60 36
Ratio = 48.2% 49.1%
Non recurring expenses as of 30.6.2016 are mainly related to the provision for the voluntary separation scheme of Alpha
Bank Cyprus Ltd amounting to E 31,5 million and other provision for the period amοunting to E 11,2 million, which are
included in captions "Provision for voluntary separation scheme" and "Other expenses" respectively.
* Total expenses of the period include the proportion of the contribution to Resolution Fund for 2015 which was
accounted in the third quarter of 2015 for comparison reasons.
This information is provided by RNS
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